The Markets in Crypto-Assets Regulation (“The MiCA Regulation”) adopted last year will begin to apply in full in 2024. The purpose of the Regulation is take advantage of the positive impact of crypto-assets on the financial markets while at the same time addressing any risks to financial stability that may arise.
The definition of a crypto-asset is in line with the definition previously used in international collaborations, in other words a digital representation of a value or a right that can be transferred and stored electronically using distributed ledger or similar technology. Two specific types of crypto-assets are also defined: asset-referenced tokens and e-money tokens. An e-money token is a type of crypto-asset that purports to maintain a stable value by referencing the value of one official currency. An asset-referenced token, on the other hand, is a type of crypto-asset that is not an e-money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies. The MiCA Regulation also includes other crypto-assets, i.e. crypto-assets that are neither an e-money token nor an asset-referenced token.
The MiCA Regulation includes requirements for offers and marketing of crypto-assets, including requirements for preparation of a white paper that must describe the characteristics and risks of the crypto-asset, for example. It also contains requirements for permits for issuers of asset-referenced tokens, permits as credit institutions or electronic money institutions for issuers of e-money tokens as well as certain rules regarding conduct and market abuse.
Most of the provisions of the MiCA Regulation will begin to apply from 30 December 2024, though the rules on permit obligations for issuers of asset-referenced and e-money tokens will apply as early as 30 June 2024.
