The European Commission is asking its members to agree on the proposed regulations Markets in Crypto Assets (MiCA).
The European Commission hopes to have its proposed regulatory sandbox for financial products using distributed ledger technology (DLT) completed by the end of the year, according to Mairead McGuinness, the European Commissioner for Financial Stability.
According to McGuinness, crypto assets are developing quickly, enabling local firms to enter the market, while also attracting retail investors.
”It is our policy and our duty as policymakers to put sound rules in place as quickly as possible,” McGuinness stated.
MiCA: A brief overview
MiCA represents a package of measures to enhance digital finance potential in terms of innovation and competition while mitigating its risks.
Through this set of regulations, the European Commission aims to make Europe stay ahead in terms of innovation and make it fit the digital era, enabling people to access the future economy safely and promptly.
The package also contains a proposal for a regulation to build markets for crypto-assets as well as a proposal to clarify or amend certain EU rules related to financial services.
MiCA has four principal objectives:
- Providing legal certainty for crypto-assets not governed by existing EU financial services legislation.
- Establishing uniform regulations for crypto-asset service providers and issuers at the EU level.
- Replacing existing national statutes for crypto-assets not covered by the existing EU financial services legislation.
- Introducing specific rules for so-called stablecoins, including when they are used as e-currencies.