EU Creates Uniform Legal Framework for Crypto-Assets
Protections for Consumers, Safeguards Against Financial Crime
The European Council and Parliament have come to a provisional agreement on the Markets in Crypto-Assets (MiCA) proposal, which establishes a comprehensive legal framework for crypto-assets within the EU. This framework aims to protect consumers and strengthen safeguards against market manipulation and financial crime.
Key Provisions of the MiCA Framework
The MiCA framework will cover issuers of unbacked crypto-assets, requiring them to comply with certain requirements, including disclosure obligations, capital requirements, and conduct of business rules.
The framework will also introduce measures to combat market manipulation, financial crime, and money laundering, including requirements for anti-money laundering checks and reporting of suspicious transactions.
Significance of the MiCA Agreement
The MiCA agreement is a significant step towards establishing a harmonized regulatory framework for crypto-assets across the EU. It provides legal certainty for businesses operating in this sector and enhances protections for consumers.
The European Commission estimates that the MiCA framework will support the growth of the EU crypto-asset market, fostering innovation and promoting financial stability.
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