Markets in Crypto-Assets

What is it about?

The Markets in Crypto-Assets Regulation (MiCAR) is a proposed regulation of the European Union to create a single and harmonised regulatory framework for cryptoassets. The aim is to make the market for crypto-assets more transparent, secure and efficient. The regulation includes rules for value-referenced tokens, e-money tokens and utility tokens, but not for security tokens.

Under MiCAR, various regulations are introduced, including:

• Permit requirement: Issuers and providers of crypto-assets as well as providers of certain crypto-services must apply for a permit in order to carry out their activities. This creates a higher level of trust and security for investors.
• Central register: When providing crypto-asset services across borders, companies must register their activities in a central register. This will improve transparency and reduce the risks of money laundering and terrorist financing.
• Publication obligations: Companies offering crypto-assets are obliged to publish certain information, such as a white paper. This creates a comprehensive and understandable information basis for potential investors.
• Market abuse protection: MiCAR also contains regulations to protect against market abuse in connection with crypto assets. This is intended to prevent manipulation and fraudulent activities.

Challenges for companies:

The introduction of MiCAR poses a number of challenges for companies, particularly in the crypto-asset space, including:

• Regulatory compliance: Companies must ensure that they obtain all necessary permits and authorisations in accordance with the provisions of MiCAR and fully comply with regulatory requirements.
• Complexity of requirements: MiCAR includes various regulations and requirements that companies need to understand and implement. This often requires specific expertise and adjustments to internal processes.
• Technological adjustments: Companies may need to update their IT infrastructure, security mechanisms and reporting systems to meet the new standards and obligations.