Regulation (EU) 2023/1114 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937

Summary:

Regulation (EU) 2023/1114 - adopted by the co-legislators on 31 May 2023 - setting out a framework aimed at regulating markets in crypto-assets (MiCA). It introduces amendments to Regulation (EU) No 1093/2010, Regulation (EU) No 1095/2010, Directive 2013/36/EU and Directive (EU) 2019/1937. This is a text with EEA relevance.

Further information:

Crypto-assets are a digital representation of values or rights that can be stored and traded electronically. They can serve as an access key to a service, could facilitate payments, or could be designed as financial instruments. This Regulation lays down uniform requirements for the offer to the public and admission to trading on a trading platform of crypto-assets other than asset-referenced tokens and e-money tokens, of asset-referenced tokens and of e-money tokens, as well as requirements for crypto-asset service providers.

The draft law was adopted by the European Commission on 24 September 2020, as part of the so-called Digital Finance Package. The opportunities and challenges raised by crypto-assets had been examined by the Commission ever since the publication of the 2018 Fintech Action Plan. The Council of the European Union adopted its general approach on 24 November 2021. The plenary of the European Parliament endorsed a negotiating position on 4 April 2022. An informal agreement between the co-legislators on a compromise text for this file was reached on 30 June. This was formally endorsed by Parliament on 20 April 2023 and by the Council on 16 May. The Act was signed by the co-legislators on 31 May 2023 and published in the Official Journal on 9 June 2023.

• Primary Source

Commentary and Analysis

Linklaters: FintechLinks Blog, 02/10/2020: The EU’s proposal to regulate the crypto industry: what, how and when? https://www.linklaters.com/en/insights/blogs/fintechlinks/2020/october/the-eus-proposal-to-regulate-the-crypto-industry-what-how-and-when

White&Case: Alerts, 14/10/2020: EU Regulation on Markets in Crypto-assets and DLT Pilot Regime https://www.whitecase.com/publications/alert/eu-regulation-markets-crypto-assets-and-dlt-pilot-regime

Norton Rose Fullbright: Publications, November 2020: MiCA: Regulating provision of services in crypto-assets https://www.nortonrosefulbright.com/en/knowledge/publications/03f73e05/mica-regulating-provision-of-services-in-crypto-assets

Allen & Overy: Webinar, 25/11/2020: New EU regulation of crypto assets (MiCA) https://www.allenovery.com/en-gb/global/news-and-insights/publications/webinar-new-eu-regulation-of-crypto-assets-mica

Oxford University: Law Faculty Blog, 30/11/2020: The Markets in Crypto-Assets Regulation (MiCA) and the EU Digital Finance Strategy https://www.law.ox.ac.uk/business-law-blog/blog/2020/11/markets-crypto-assets-regulation-mica-and-eu-digital-finance-strategy

Lexology: Library, 03/12/2020: New rules for cryptocurrencies in the EU soon to come? https://www.lexology.com/library/detail.aspx?g=5667ecda-6297-4045-85e3-c3c15b1155c7

PricewaterhouseCoopers (PwC): Financial Services Regulatory Insights, 09/12/2020: The Markets in Crypto-Assets Regulation: Paving the way for change https://pwc.blogs.com/fsrr/2020/12/the-markets-in-crypto-assets-regulation-paving-the-way-for-change.html

Stanford Law School: Blog, 12/01/2021: New Crypto Rules in the European Union – Gateway for Mass Adoption, or Excessive Regulation? https://law.stanford.edu/2021/01/12/new-crypto-rules-in-the-eu-gateway-for-mass-adoption-or-excessive-regulation/

Centre for European Policy (CEP): Policy Brief No 1, 22/02/2021: Regulating Crypto-Assets – Part I: Stablecoins https://www.cep.eu/en/eu-topics/details/cep/regulating-crypto-assets-stablecoins-ceppolicybrief-com-2020-593.html

European Parliamentary Research Service (EPRS): Briefing, 03/03/2021: Updating the Crypto Assets Regulation and establishing a pilot regime for distributed ledger technology - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2021)662617

Centre for European Policy (CEP): Policy Brief No 3, 09/03/2021: Regulation of Crypto-Assets – Part II: Cryptocurrencies and Utility-Tokens https://www.cep.eu/en/eu-topics/details/cep/kryptowerte-cepanalyse-zu-com2020-593-1.html

Centre for European Policy (CEP): cepInput No 7, 09/03/2021: Regulating Crypto-Assets: MiCA-Regulation https://www.cep.eu/en/eu-topics/details/cep/regulating-crypto-assets-mica-regulation-cepinput.html

European Banking Federation (EBF): EBF key messages - European Commission proposal: Regulation on Markets in crypto-assets (MiCA) (06/05/2021) https://www.ebf.eu/wp-content/uploads/2021/12/210506-EBF_MiCA_key-messages.pdf

London School of Economics (LSE): EUROPP Blog, 05/07/2021: What the EU’s new MiCA regulation could mean for cryptocurrencies https://blogs.lse.ac.uk/europpblog/2021/07/05/what-the-eus-new-mica-regulation-could-mean-for-cryptocurrencies/

ING Think: Article, 24/03/2022: Regulation and the coming of age of Europe’s crypto markets https://think.ing.com/articles/regulation-and-the-coming-of-age-of-europes-crypto-markets/

KU Leuven: CiTiP Blog, 19/04/2022: NFTs excluded from MICA: A freeport for crypto pirates? https://www.law.kuleuven.be/citip/blog/nfts-excluded-from-mica-a-freeport-for-crypto-pirates/

European Capital Markets Institute (ECMI): Commentary, 20/05/2022: EU’s proposed crypto regulations are flawed https://www.ecmi.eu/publications/commentaries/eu%E2%80%99s-proposed-crypto-regulations-are-flawed

Bruegel: Comment, 05/07/2022: Is MiCA the end of the crypto wild-west? https://www.bruegel.org/comment/mica-end-crypto-wild-west

Norton Rose Fulbright: Publications, September 2022: Regulating crypto-assets in Europe: Practical guide to MiCA https://www.nortonrosefulbright.com/en/knowledge/publications/2cec201e/regulating-crypto-assets-in-europe-practical-guide-to-mica

Pinsent Masons: Out-Law Analysis, 28/10/2022: What EU’s MiCA regulation means for crypto-asset service providers https://www.pinsentmasons.com/out-law/analysis/eu-mica-regulation-crypto-asset-service-providers

Ernst&Young (EY), 16/11/2022: Potential transfer pricing implications of the upcoming MiCA Regulation for crypto-asset service providers https://www.ey.com/en_lu/tax/potential-transfer-pricing-implications-of-the-upcoming--mica-re

European Parliamentary Research Service (EPRS): Briefing, 29/11/2022: Markets in crypto-assets (MiCA) https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)739221

Clifford Chance: Briefings, 02/12/2022: Crypto regulation: the introduction of MiCA into the EU regulatory landscape https://www.cliffordchance.com/briefings/2022/12/crypto-regulation--an-introduction-of-mica-into-the-eu-regulator.html

Mayer Brown: Perspectives, 14/12/2022: EU Markets in Crypto-Assets (MiCA) Regulation Expected to Enter into Force in Early 2023 https://www.mayerbrown.com/en/perspectives-events/publications/2022/12/eu-markets-in-crypto-assets-mica-regulation-expected-to-enter-into-force-in-early-2023

Fordham University School of Law: Journal of Corporate & Financial Law: Blog, 06/02/2023: An Overview of the EU Crypto-Asset Regulatory Framework (MiCA) https://news.law.fordham.edu/jcfl/2023/02/06/an-overview-of-the-eu-crypto-asset-regulatory-framework-mica/

European Parliamentary Research Service (EPRS): At a Glance, 12/04/2023: Markets in crypto-assets (MiCA) https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2023)745716

Banco Bilbao Vizcaya Argentaria (BBVA): Innovation, 20/04/2023: EU Markets in Cryptoassets (MiCA) Regulation: What is it and why does it matter? https://www.bbva.com/en/innovation/eu-markets-in-cryptoassets-mica-regulation-what-is-it-and-why-does-it-matter/

Official Monetary and Financial Institutions Forum (OMFIF), 19/05/2023: MiCA is the first step in robust approach to crypto regulation https://www.omfif.org/2023/05/mica-is-the-first-step-in-robust-approach-to-crypto-regulation/

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News

CityAM, 13/03/2022: Crypto industry warns of ‘existential threat’ from draft EU regulation https://www.cityam.com/crypto-industry-warns-of-existential-threat-from-draft-eu-regulation/

Euronews, 14/03/2022: Europe rejects proposal limiting PoW cryptos such as Bitcoin but sets draft rules for sustainability https://www.euronews.com/next/2022/03/14/europe-to-vote-on-limiting-pow-crypto-mining-used-by-bitcoin-and-ethereum

Reuters, 19/04/2022: European crypto industry steps up efforts to influence EU policy https://www.reuters.com/technology/european-crypto-industry-steps-up-efforts-influence-eu-policy-2022-04-19/

The Guardian, 01/07/2022: EU moves to rein in ‘wild west’ of crypto assets with new rules https://www.theguardian.com/technology/2022/jul/01/eu-moves-to-rein-in-wild-west-of-crypto-assets-with-new-rules

Euronews, 01/07/2022: EU agrees on landmark crypto regulation in wake of Terra meltdown and Bitcoin plunge https://www.euronews.com/next/2022/07/01/eu-agrees-on-landmark-mica-crypto-regulation-in-wake-of-terra-meltdown-and-bitcoin-plunge

Politico, 25/11/2022: Europe: FTX-style crypto crash won’t happen here https://www.politico.eu/article/crypto-european-union-ftx-lawmakers-claim/

Bloomberg, 20/04/2023: First EU-Wide Crypto Regulations Clear Final Parliament Vote https://www.bloomberg.com/news/articles/2023-04-20/eu-s-mica-crypto-regulations-clear-final-parliament-vote

Reuters, 16/05/2023: EU Council adopts first legal framework to regulate crypto sector https://www.reuters.com/technology/eu-council-adopts-first-legal-framework-regulate-crypto-sector-2023-05-16/

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Official

European Commission: Publications: Digital Finance Package https://ec.europa.eu/info/publications/200924-digital-finance-proposals_en

EUR-LEX: COM(2020)593: Proposal for a Regulation on Markets in Crypto-assets https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:593:FIN

EUR-LEX: SWD(2020)380: Staff Working Document accompanying the Proposal - Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2020:380:FIN

EUR-LEX: SWD(2020)381: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2020:381:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Digital finance: Markets in Crypto-assets (MiCA) (2020/0265(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2020/0265(COD)

European Parliament: Legislative Train Schedule: Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets https://www.europarl.europa.eu/legislative-train/theme-a-europe-fit-for-the-digital-age/file-crypto-assets-1

General Secretariat of the Council: Policies: Digital finance https://www.consilium.europa.eu/en/policies/digital-finance/

Irish Central Bank: Regulation: Markets in Crypto-Assets (MiCA) Regulation https://www.centralbank.ie/regulation/markets-in-crypto-assets-regulation

European Commission: Press Release, 24/09/2020: Digital Finance Package: Commission sets out new, ambitious approach to encourage responsible innovation to benefit consumers and businesses https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1684

Council of the European Union: Press Release, 24/11/2021: Digital finance package: Council reaches agreement on MiCA and DORA https://www.consilium.europa.eu/en/press/press-releases/2021/11/24/digital-finance-package-council-reaches-agreement-on-mica-and-dora/

S&D EP Group: Newsroom, 28/02/2022: MiCA - Regulating crypto-assets: S&Ds deplore conservatives caving in to lobbying pressure https://www.socialistsanddemocrats.eu/newsroom/mica-regulating-crypto-assets-sds-deplore-conservatives-caving-lobbying-pressure

European Parliament: Press Release, 14/03/2022: Cryptocurrencies in the EU: new rules to boost benefits and curb threats https://www.europarl.europa.eu/news/en/press-room/20220309IPR25162/

Renew Europe EP Group: News, 14/03/2022: Renew Europe supports an ambitious and future-proof Regulation for Crypto-Assets in Europe https://www.reneweuropegroup.eu/news/2022-03-14/renew-europe-supports-an-ambitious-and-future-proof-regulation-for-crypto-assets-in-europe

EPP EP Group: Newsroom, 14/03/2022: Crypto 'Wild West' needs a European sheriff https://www.eppgroup.eu/newsroom/news/crypto-wild-west-needs-a-european-sheriff

Council of the European Union: Press Release, 30/06/2022: Digital finance: agreement reached on European crypto-assets regulation (MiCA) https://www.consilium.europa.eu/en/press/press-releases/2022/06/30/digital-finance-agreement-reached-on-european-crypto-assets-regulation-mica/

European Parliament: Press Release, 30/06/2022: Cryptocurrencies in the EU: deal struck between Parliament and Council https://www.europarl.europa.eu/news/en/press-room/20220613IPR32840/

EPP EP Group: Newsroom, 30/06/2022: Europe to become standard-setter in global crypto market https://www.eppgroup.eu/newsroom/news/europe-to-become-standard-setter-in-global-crypto-market

European Parliament: Press Release, 20/04/2023: Crypto-assets: green light to new rules for tracing transfers in the EU https://www.europarl.europa.eu/news/en/press-room/20230414IPR80133/

Council of the European Union: Press Release, 16/05/2023: Digital finance: Council adopts new rules on markets in crypto-assets (MiCA) https://www.consilium.europa.eu/en/press/press-releases/2023/05/16/digital-finance-council-adopts-new-rules-on-markets-in-crypto-assets-mica/

Authorité des Marchés Financiers (AMF France): News, 26/05/2023: Crypto-asset markets: the MiCA regulation adopted by the European Parliament https://www.amf-france.org/en/news-publications/news/crypto-asset-markets-mica-regulation-adopted-european-parliament

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