MiCA or Markets in Crypto-Assets – the legislation designed to create a regulatory ecosystem for digital assets in the European Union, has officially been signed into law. While the law had been previously approved and the signing is a formality, the legislation is now enforceable, according to a Tweet by the Swedish Presidency of the EU.
Facilitated trade for Ukrainian products, and stronger rules to prevent financial crime through crypto-assets – this will
be the effect of two of the new EU laws negotiated under #EU2023SE.Signed by @peterkullgren and @EP_President today, they now enter into force. pic.twitter.com/RdzE7hvrYE
— Swedish Presidency of the Council of the EU (@sweden2023eu) May 31, 2023
MiCA aims to establish legal certainty in the crypto sector – a new part of finance that has struggled with traditional securities laws. MiCA looks to ensure investor protection while enabling innovation. At the same time, MiCA wants to guarantee financial stability if crypto grows. The law does not impact digital securities or non-fungible tokens (NFTs).
The regulation covers three types of crypto-assets: “asset-referenced tokens” (ART), “electronic money tokens” (EMT), and other crypto-assets not covered by existing EU law.
The legislation would regulate the issuance and trading of crypto-assets as well as the management of the underlying assets, where applicable, with additional regulatory rules aimed at ‘significant’ ART and EMT.
