MiCA: everything you need to know about the new European cryptoasset regulation
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The cryptocurrency revolution is about to face its biggest regulatory challenge yet. Last December 30, 2024, the European Regulation MiCA (Markets in Crypto-Assets) came into force, which will mark a before and after in the cryptoassets market in the European Union.
Are you ready to surf this new regulatory landscape? In this article we tell you all about the new European cryptoassets regulation. And we also tell you about one of our most powerful solutions to manage yours.
What is the MiCA regulation and why should you care?
The MiCA regulation is not just another European regulation. It is the EU’s first comprehensive attempt to bring order to the wild west of cryptocurrencies. The goal is to arrive at a model where buying Bitcoin is as safe as opening a bank account.
This regulation seeks to protect investors from the risks associated with cryptoassets, prevent money laundering or terrorist financing and encourage technological innovation in the financial sector. But how will this affect users and companies in the crypto sector?
Scope of application and regulated products
MiCA applies to any natural or legal persons and companies involved in the issuance, public offering and admission to trading of cryptoassets or providing services related to cryptoassets in the EU. Regulated products include:
- Asset-Related Tokens (ART): cryptoassets that stabilize their value relative to other assets.
- Electronic money tokens (EMT): cryptoassets referenced to the value of a legal tender.
- Other cryptoassets not included in the above categories.
It is important to note that non fungible tokens (NFTs) are excluded, unless they have similar characteristics to other regulated cryptoassets. Security tokens are also left out, as they are regulated by other regulations such as MiFID.
New rules of the game for issuers and providers
If you are an issuer of cryptoassets or a provider of related services, you should prepare for some significant changes. For starters, you will have to publish a detailedwhite paper about your crypto project, a sort of “prospectus” so that all users are clear on what it is all about. And that’s because cryptoasset service providers will need to obtain a license to operate, which will mean the end of makeshift exchanges.
MiCA will regulate a wide range of services including:
- Custody and administration of cryptoassets.
- Operation of trading platforms.
- Exchange of cryptoassets for fiat currencies or other cryptoassets.
- Execution of orders.
- Placement of cryptoassets.
- Receipt and transmission of orders.
- Advice on cryptoassets.
In addition, measures will be implemented to safeguard customer funds, saying goodbye to the dreaded exit scams. Each movement of cryptoassets will have to be accompanied by detailed information on who issues the cryptoasset and who will be its new holder, which will increase transparency in transfers.
Stablecoins, those cryptocurrencies that try to maintain a stable value, will be under special scrutiny. MiCA establishes specific requirements for their issuance and management, seeking to avoid situations like the Terra/Luna collapse that shook the market some time ago.
The impact on the cryptocurrency market
Do you think MiCA will slow down movements in the cryptoasset universe? Well, think again. This regulation could be the catalyst the crypto market needs to mature and gain the confidence of the general public.
As MiCA regulatory compliance will provide a more secure framework for investment, we are likely to see greater institutional adoption of cryptoassets. We may also witness market consolidation, with mergers and acquisitions between companies in the sector looking to comply with the new regulatory requirements. However, it is also possible that some projects may decide to exit the European market due to the complexity of complying with MiCA.
TU Wallet, a digital wallet for trading cryptocurrencies
In this new scenario, wallets gain weight and having a trusted and regulated one will be more important than ever. TU Wallet is a secure digital wallet, developed by Telefónica Innovación Digital, with which you can manage your cryptoassets in an intuitive and simple way.
Its advanced functionalities offer you everything you need. One of them is the exchange feature, which allows you to convert cryptocurrencies to euros (or vice versa) easily, but there are many more. If you want to discover them, download TU Wallet for iPhone or Android now, the perfect option to enter the complex sea of cryptoassets.
Soy redactor publicitario y llevo más de 15 años creando contenidos sobre creatividad y tecnología. Muy fan de las redes sociales, la inteligencia artificial y el cine indie.
