MiCA consultation by EU regulator begins in July.
The financial watchdog of the European Union will begin a consultation process for the recently adopted Markets in Crypto-Assets framework, or MiCA. The consultation packages will cover the authorization, governance, conflicts-of-interest, and complaint-handling procedures of MiCA. The measures will be subject to approval by the European Commission, European Parliament, and European Council. The first consultation package will include technical standards on the application of crypto asset service providers in the EU, as well as procedures for handling complaints and disclosing potential conflicts of interest. The second consultation will consider disclosures of information to investors, governance requirements for crypto firms, and sustainability indicators and adverse impacts on climate. The final consultation may consider investor protection and rules to counter market abuse. The MiCA framework suggested a roughly 18-month timeline to fully take effect, with all rules applying beginning in December 2024.
After first being proposed by the European Commission in September 2020, the Economic and Financial Affairs Council of the European Union approved MiCA in a May 2023 vote. MiCA aims to create a consistent regulatory framework for crypto among EU member states.
Regulatory clarity of digital assets is often at the forefront of discussions. At a time when crypto industry leaders are considering in which jurisdictions to conduct business, MiCA aims to provide clarity for crypto-focused legislation.