EU’s Proposed Legislation Regulating Cryptoassets, MiCA, Heralds New Era of Regulatory Scrutiny

The European Union’s proposed Markets in Crypto-assets (MiCA) regulation,1 which includes new regulations for the classification, issuance and admission to trading of cryptoassets, as well as for the provision of services on crypto markets, is heading towards the final stages of its legislative approval process. On 5 October 2022, the Council of the European Union (the Council) confirmed its intention to approve the draft legislative package, which includes MiCA, assuming the European Parliament adopts the draft package at first reading. The latest agreed text of MiCA was published by the Council on 30 September 2022, following substantial negotiations between the EU’s three legislative institutions, i.e., the Council, the Parliament and the European Commission (the Commission).


The Council’s announcement gives the Parliament a clear indication of the Council’s position regarding MiCA’s final compromise text. The Council, however, will only be able to formally approve MiCA once the Parliament has delivered its opinion following its first reading of the draft regulation.


MiCA is a landmark piece of legislation that heralds a new era of regulatory scrutiny of crypto markets. It provides a substantial degree of the regulatory clarity that the crypto industry has long sought, which is particularly relevant given the recent bankruptcy filings in the crypto sector. Lawmakers around the world may look to MiCA as a basis for their own legislative efforts to regulate crypto markets.

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