The final draft of MICAR (Markets in Crypto Assets Regulation) is available: A rough overview of the content

Key Facts

MICAR is a comprehensive regulation that monitors trading in cryptocurrencies and digital assets in the EU.
The regulation provides more transparency and security to protect consumers and investors.
Uniform regulation for all EU member states promotes cross-border trade and innovation.
Strong focus on combating money laundering and terrorist financing in the crypto sector.
Extension of existing AML regulations for crypto-asset service providers to ensure compliance.
Introduction of licensing requirements and operating standards to promote competition.
Expected integration of crypto-asset markets into the traditional European financial system.

The final draft of MICAR (Markets in Crypto Assets Regulation) is now available and marks a significant step in the regulation of crypto asset markets. MICAR is a comprehensive legislation that aims to regulate and oversee the trading and use of cryptocurrencies and other digital assets in the European Union. The regulation is intended to provide greater transparency and certainty in the markets to better protect consumers and investors. It includes regulations for various crypto asset service providers, such as exchanges, wallet providers, and ICO organizers. MICAR also sets the regulatory framework for crypto asset issuers to prevent market manipulation and fraud.

A key component of MICAR is the introduction of uniform regulation for all EU member states. By creating a harmonized legal framework, it will be easier to encourage cross-border trade and investment in crypto-assets and to support innovation in this area. The regulation also creates uniform licensing requirements and operating standards for crypto asset service providers to ensure that they comply with applicable regulations. This will encourage competition and help grow the European crypto-asset market. In addition, regulatory harmonization should also reduce legal uncertainty and regulatory arbitrage.

MICAR also has a strong focus on anti-money laundering and counter-terrorist financing related to crypto-assets. The regulation extends existing anti-money laundering (AML) regulations to crypto-asset service providers, ensuring that they adequately identify their customers and report suspicious transactions. To ensure compliance, the role of national supervisors will be strengthened and the European Securities and Markets Authority (ESMA) will be given additional powers of supervision and enforcement. MICAR also requires issuers of cryptoassets to provide detailed information about their offerings to better educate potential investors and minimize risks.

The introduction of MICAR will have far-reaching implications for the crypto-asset industry in Europe. Market players must adapt to the new regulations and ensure they obtain the necessary licenses and permits. However, unified regulation will also provide opportunities for the industry by increasing consumer and investor confidence in cryptoassets and facilitating access to funding and innovation. It is expected that the implementation of MICAR will lead to greater integration of crypto-asset markets into the traditional financial system, which in turn will increase the potential for wider adoption and use of digital assets. Overall, MICAR will help ensure that Europe plays a leading role in shaping the future of the crypto-asset industry, while ensuring a high level of consumer and investor protection.

Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.