September 14, 2023 • 14 min read
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.
The information herein was prepared by Fidelity Digital Asset Services, LLC (“FDAS LLC”)and Fidelity Digital Assets, Ltd (“FDA LTD”). It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer or the solicitation of an offer to buy or sell securities or other assets. Please perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option.
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Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high-risk tolerance. Investors in digital assets could lose the entire value of their investment.
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