The trilogue agreed on the final text for the Markets in Crypto Assets Regulation (“MiCAR“) on June 30, 2022, which now needs to be adopted by the member states (click here for the press release).
- MiCAR will for the first time create a single European legal framework for crypto assets, crypto issuers and service providers. Crypto assets have been regulated in a predominantly inconsistent manner in Europe to date.
- MiCAR provides for specific requirements for Utility Token, Value-Referenced Token and E-Money Token. It does not include Security Tokens, which are already subject to existing EU financial services regulations, and Non-fungible Tokens (“NFTs”), unless they fall under one of the crypto asset categories.
- In addition, MiCAR regulates regulatory requirements for crypto issuers (e.g., obligation to prepare a white paper) and crypto service providers (e.g., requirement for licensing and ongoing conduct of business obligations).
- New compared to the draft version is, for example, that companies on the crypto securities market are now required to submit a statement with information on their environmental and climate footprint. The content, methods and presentation of the statement will then be specified by ESMA (European Securities and Markets Authority) via technical standards.
The final text of MiCAR has not yet been published. The regulation is expected to enter into force at the end of the year, and the provisions will then be directly applicable in all EU member states after a transition period of 18 months following entry into force.