Markets in Crypto-Assets Regulation (MiCAR)
Here you will find the legislation applicable to crypto-asset service providers (CASPs). The European Markets in Crypto-Assets Regulation (MiCAR), as further detailed in underlying regulations, is particularly relevant.
MiCAR
The Markets in Crypto Assets Regulation (MiCAR) is the first package of European legislation that has been enacted to regulate cryptocurrencies and related services. This legislation applies to both issuers of crypto assets and providers of crypto services and harmonises rules within the EU. MiCAR was published on 30 June 2023.
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.
Statutory requirements
ESMA and/or the EBA have specified some MiCAR requirements in greater detail in so-called delegated regulations. Examples include rules relating to the licensing and notification process, complaint handling, conflicts of interest, business continuity, sustainability indicators, the crypto-assets white paper and questions of scope.
The AFM organised a meeting on MiCAR with market participants in January 2024. Questions from market participants were discussed before, during and after this meeting. Where possible, the AFM will use the questions as input for their preparations and guidance towards the market.
Transition period
A transition period applies to CASPs already operating in accordance with national rules before 30 December 2024. If they wish to continue providing crypto-asset services, they must have a MiCAR licence or notification by 30 June 2025 (expected). Until then, they will be governed by the national regime.