The Markets in Crypto-Assets (MiCA) regulation is gradually becoming the foundation of the legal framework for the European Union’s crypto market. The document introduces uniform requirements for transparency, disclosure, licensing, and oversight for market participants issuing and trading cryptoassets, including stablecoins and tokens pegged to asset baskets.
MiCA fills a regulatory void for assets previously excluded from traditional financial regulations. Issuers and service providers are now required to comply with standards similar to those for traditional financial instruments, from capital requirements to consumer protection rules.
According to legal experts, MiCA will make the European market more predictable and attractive for regulated companies and institutional investors, but will also raise the barrier to entry for smaller startups due to compliance costs.