MiCA: EU expands crypto regulation

The European Union has proposed an ambitious piece of legislation to address regulatory gaps in relation to cryptoassets and new technologies. Charlotte Hill and Katie Fry-Paul examine the proposal as currently understood.

Charlotte Hillis a partner and head of the Financial Services Regulatory group at Taylor Wessing in London, whereKatie Fry-Paulis an associate. Contact them onc.hill@taylorwessing.comandk.fry-paul@taylorwessing.com.

The Regulation on Markets in Cryptoassets (MiCA) forms part of the EU's digital finance package, proposed by the European Commission on 24 September 2020. The package also contained a digital finance strategy, as well as proposals on digital operational resilience (DORA) and distributed ledger technology (DLT). The package was intended to bridge a gap in EU legislation regarding new technologies. On 30 June 2022, the Council presidency and European Parliament reached a provisional agreement on the MiCA proposal.