EU Markets in Crypto-assets
Last week the European Commission released its proposed Markets in Crypto-Assets (MiCA) Regulation.
The infographic below is Braithwate's summary of the key components: three regulated forms of Crypto-Asset (Utility Token, Stablecoin and E-Money Token) and new authorisations and compliance requirements for Crypto-Asset Service Providers.
The regulation effectively applies MiFID II, Prospectus Reg and MAR standards to crypto-assets, with a Crypto Whitepaper replacing traditional Prospectus rules.
While some may see this as over-reach, we welcome the articulation of a coherent regulatory framework to bolster the mainstream adoption of digital assets.
Subject to the consultation process, we expect this to enter into force in 2021, with the main provisions taking effect during 2022.