Research Study

MiCA

The EU’s Path to Digital Assets Regulation

by Stoyan Djourov

Lack of comprehensive regulation for digital assets has been a major obstacle for institutions that want to embrace the opportunities enabled by blockchain technology. As this new asset class has evolved rapidly over the last decade, driven by major advancements in the underlying technology, increased investor appetite, and real-world utility, regulators all over the world have started to lay the foundations for what will be an evolution of legislation.

In 2020, the European Union (EU) recognized the significance of digital assets and began drafting preliminary text for the “Markets in Crypto Assets” (MiCA) guidelines, with the aim of setting standards across the EU and bridging gaps in the existing financial services regulatory framework.

In this article, we discuss what MiCA is, why it’s needed, to whom it applies, what it covers, potential benefits, and more.

Read the full report here.

 

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