Markets in Crypto-Assets Regulation

Objectives

MiCAR has four interrelated objectives. The first objective is to provide legal certainty. If the markets for crypto assets in the EU are to develop, there has to be a robust legal framework that clearly states how crypto assets are dealt with in legislation and regulations.

The second objective is to support innovation. To encourage the development of crypto assets and wider use of distributed ledger technology (DLT), there needs to be a secure and proportionate framework to promote innovation and fair competition.

The third objective is to ensure the required level of consumer and investor protection and market integrity. This is needed because crypto assets not covered by the current financial services legislation give rise to many of the same risks as more familiar financial instruments.

The fourth objective is to safeguard financial stability. Crypto assets are continuously evolving. Some are relatively limited in scope and use, while others, such as the new category of stablecoins, have the potential to become widely accepted and possibly systemically relevant. MiCAR includes safeguards against risks to financial stability and a controlled monetary policy that may arise from the use of stablecoins.