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EU Parliament approved European Crypto Asset Markets Regulation
2023-04-20

Today the European Parliament approved European Crypto Asset Markets Regulation, also known as MiCA. It represents a significant step towards establishing a regulatory framework for cryptocurrencies, security tokens, and stablecoins in the European Union after it was first suggested in the autumn of 2020.
– MiCA aims to create a regulatory framework for crypto assets, such as cryptocurrencies, security tokens, and stablecoins, in the European Union.
– Under the proposed MiCA regulation, issuers of crypto assets would need to comply with certain disclosure requirements and obtain authorization, i.e., crypto service providers will be required to obtain a license in one of the 27 EU countries in order to operate throughout the EU – similar rules currently apply to fintech sector.
– Lithuania and some EU countries have already partially implemented some of the MiCA requirements, for e.g., 125,000 EUR authorized capital requirement for virtual asset service providers. The same requirement for authorized capital is established in MiCA for class 1 crypto-asset service providers, who additionally offer custody and administration of crypto-assets on behalf of third parties services.
– MiCA additionally regulates incentives for innovation and fair competition, consumer protection, and safeguards regarding potential risks to financial stability.

Response Legal is always ready to assist VASPs to be fully compliant with the applicable requirements. Since legal requirements are dynamic and everchanging, our team is dedicated to keeping up with any updates concerning the issue.

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