Preparation for MiCA: Data will be at the heart of your preparation for MiCA. We created this guide to help you understand the upcoming requirements and adapt your data strategy. We will outline MiCA’s scope, requirements, and challenges and at the end provide several case studies showing how Crypto Asset Service Providers (CASPs) and regulators can leverage data to stay compliant.
What is MiCA? The Markets in Crypto-Assets (MiCA) is a new regulatory framework issued by the EU, designed specifically for cryptocurrencies and digital assets. This initiative marks the EU’s first comprehensive effort to regulate cryptocurrencies, drawing on TradFi and the foundational principles established by the Markets in Financial Instruments Directive (MiFID I) and its successor, MiFID II.
Why is it being introduced? The MiFID directives primarily aimed to ensure fair and orderly operations among financial market intermediaries. MiCA seeks to expand this vision beyond traditional finance and into the realm of digital assets.
The absence of unified EU regulation for cryptocurrencies has led to a fragmented landscape of national-level regulations and inconsistencies across the European Union, impacting businesses and consumers alike.
MiCA attempts to address these inconsistencies by establishing a unified legal framework that promotes market integrity, financial stability, and consumer awareness about potential risks, ultimately fostering a more transparent and secure environment for the digital asset market.
When will it come into force? The legislation was officially entered into force in June 2023, giving organizations time to adjust. Deadlines for full compliance vary depending on the type of crypto asset or organization:
E-money tokens (EMT) and asset-referenced tokens (ART) – June 2024
CASPs and other token types – December 2024