First Draft of Crypto-Asset Regulation (MiCA) with the European Union and Potential Implementation

Marek Bočánek

First Draft of Crypto-Asset Regulation (MiCA) with the European Union and Potential Implementation

Publication date: 30.06.2021

Financial Law Review, 2021, Issue 22 (2)/ 2021, pp. 37 - 53

https://doi.org/10.4467/22996834FLR.21.011.13979

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First Draft of Crypto-Asset Regulation (MiCA) with the European Union and Potential Implementation

Abstract

This article focuses on the very first working draft of new crypto-asset regulation within the European Union. The primary aim of this article is to evaluate the newly defined institutes in the draft and confirm or disprove the hypothesis that this new system of crypto-assets may be implemented to the actual regulation of capital markets as well as payment system, in effect within the European Union.
As mentioned above, hypothesis will count on an ideal adoption of the MiCA regulation into the existing legal framework of both, capital markets as well as payments regulation in the European Union, not interfering with existing laws or regulations.
Within the first part of this article, synthesis will be used as well as compilation for the description of crypto-asset categories and of the issuers of crypto-assets or crypto-asset service providers. Subsequently, analysis will be applied for the specification of missing elements for the purpose of finding the right connection and implementation into the existing regulation of capital markets and payments industry.

Keywords

crypto-asset, issuer of crypto-assets, crypto-asset service provider, MiCA, payments, utility token, stablecoin, whitepaper

References

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Legal Acts

Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937 (EUR-Lex, 593, as amended).

Directive 2014/65/EU of the European Parliament and of the Council of 15 May on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (EUR-Lex, L 173/349, as amended).

Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (EUR-Lex, L 267/7, as amended).

Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (EUR-Lex, L 173/149, as amended).

Directive (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012 (EUR-Lex, L 347/35, as amended).

Regulation 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (EUR-Lex, L 168/12, as amended).

Payment Services Act 2019 (Singapore Statutes, No. 2 of 2019, as amended).

Regulation 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (EUR-Lex, L 173/1, as amended).

Other Official Documents

Report with advice for the European Commission on crypto-assets from the European Banking Authority Available at: https://eba.europa.eu/sites/default/documents/files/documents/10180/2545547/67493daa-85a8-4429-aa91-e9a5ed880684/EBA%20Report%20on%20crypto%20assets.pdf?retry=1, accessed: 22nd November 2020.

Advice of the European Securities and Markets Authority on Initial Coin Offerings and Crypto-Assets Available at: https://www.esma.europa.eu/sites/default/files/library/esma50-157-1391_crypto_advice.pdf, accessed: 22nd November 2020.

Communication from the Commission: FinTech Action plan: For a more competitive and innovative European financial sector Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52018DC0109, accessed: 22nd November 2020.

Advice: Initial Coin Offerings and Crypto-Assets Available at: https://www.esma.europa.eu/sites/default/files/library/esma50-157-1391_crypto_advice.pdf accessed: 22nd November 2020

MFSA: Circular to issuers of virtual financial asset Available at: https://www.mfsa.mt/wp-content/uploads/2019/01/20181224_VFAA_Circular_Issuers1.pdf, accessed: 22nd November 2020.

Digital Finance Package: Commission sets out new ambitious approach to encourage responsible innovation to benefit consumers and businesses Available at: https://ec.europa.eu/commission/presscorner/detail/en/IP_20_1684, accessed: 22nd November 2020.

Internet Resources

White & Case: EU Regulation on Markets in Crypto-assets and DLT Pilot Regime Available at: https://www.whitecase.com/publications/alert/eu-regulation-markets-crypto-assets-and-dlt-pilot-regime, accessed: 22nd November 2020.

Draft of an EU-Regulation on Markets in Crypto-Assets (MiCA), Available at: https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/global/Germany/en/mica-draft-on-eu-regulation-on-markets-in-crypto-assets, accessed: 22nd November 2020.

MiCA: A Guide to the EU’s Proposed Markets in Crypto-Assets Regulation Available at: https://www.sygna.io/blog/what-is-mica-markets-in-crypto-assets-eu-regulation-guide/, accessed: 2nd December 2020.

Ethereum Whitepaper Available at: https://ethereum.org/en/whitepaper/, accessed: 2nd December 2020.

Information

Information: Financial Law Review, 2021, Issue 22 (2)/ 2021, pp. 37 - 53

DOI: https://doi.org/10.4467/22996834FLR.21.011.13979

Article type: Original article

Authors

Marek Bočánek

https://orcid.org/0000-0002-5866-8703

Faculty of Law, Masaryk University, Brno, Czech Republic

Published at: 30.06.2021

Article status: Open

Licence: CC BY-NC-ND

Percentage share of authors:

Marek Bočánek (Author) - 100%

Classification number:

JEL Classification System:

Regulated Industries and Administrative Law (K23)

Article corrections:

Publication languages:

English

View count: 1421

Number of downloads: 3237

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