Markets in Crypto-Assets (MiCA)
Further to the EC non paper on a EU framework for markets in crypto-assets published in May (see summary here). CUK has obtained the final non-paper released in July.
We are pleased to see that the commission has broadly listened to the industry and is proposing a bespoke regime for non security tokens (payment & utility). Also. that the commission is not considering stablecoins as a form of e-money.
For crypto-assets which do not qualify as financial instruments, ‘crypto-asset’, ‘utility token’, ‘asset-backed crypto assets’ and ‘significant asset-backed crypto-assets’ the Commission will propose an all encompassing bespoke regime – the Markets in Crypto-Assets Regulation (MiCA). The Regulation will include requirements on crypto-assets issuers, stablecoin issuers and crypto-asset service providers. In particular, significant asset-backed crypto-assets will be subject to additional requirements. However, it is not clear yet how crypto-assets would be defined.
The approach centres on 3 key elements.
- A bespoke regime for markets in crypto-assets (MiCA), including ‘stablecoins’, and crypto-asset service providers not covered elsewhere in the EU financial services legislation;
- A Pilot regime for distributed ledger technology (DLT) market infrastructures for crypto-assets that qualify as financial instruments;
- A targeted amendment to the notion of financial instruments under the Markets in Financial Instruments Directive II, to make it sure that such an instrument can be issued on a DLT.