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Markets in Crypto Assets (MiCA)

As part of its digital finance strategy, the EU Commission introduced a proposal to regulate the markets in crypto assets. 

To clarify, the Market in Crypto-assets Regulation (MiCA) differs from the Transfer of Funds Regulation (TFR), which is the European Union's implementation of the Travel Rule. Unlike the TFR, MiCA:

  • does not set a minimum threshold for transfers between accounts,

  • transfers involving self-hosted wallets (unhosted wallets) fall outside its scope,

  • does not address activities related to DeFi and DAOs,

  • nor does it encompass non-fungible tokens (NFTs)

  • or the lending and borrowing of crypto assets (virtual assets).

The primary objective of the MiCA framework is to establish a balanced environment for financial institutions and crypto-asset service providers (CASPs) throughout the EU. By adopting a consistent approach, participants in the ecosystem can anticipate an added layer of protection and equality.

In summary, MiCA has 4 main objectives:

  1. To protect consumers, investors, and market integrity,

  2. Ensure financial stability,

  3. Ensure legal certainty for crypto assets and,  

  4. Support fair competition and innovation. 

To find out more, see What Is The Market in Crypto Assets (MiCA) Regulation?

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