On the 30th June 2022, European Union (“EU”) officials agreed on a ‘balanced deal’ making the EU the first continent to provisionally regulate crypto-assets through this landmark law known as the Markets in Crypto-Assets (“MiCA”). The Council presidency and the European Parliament reached this provisional agreement on the MiCA proposal which covers issuers of unbacked crypto-assets, and stablecoins, as well as the trading venues and the wallets where crypto-assets are held.
MiCA is intended to protect investors whilst preserving financial stability and allowing innovation of the crypto-asset sector. With the new rules, crypto-asset service providers will have to abide by comprehensive requirements to protect consumers’ wallets and become liable in case they lose investors’ crypto-assets. Furthermore, actors in the crypto-assets market will be required to declare information on their environmental and climate footprint.
This provisional agreement is subject to the approval of the Council and the European Parliament before going through with the EU’s formal adoption procedure. By virtue of the implementation of the MiCA regulation, more cohesive and harmonious clarity will be brought within the EU in relation to crypto-assets since member states can now rely on MiCA instead of the national legislation .
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