What the EU is doing and why
Digitalisation is transforming finance. This can lead to innovative new products, services, applications and business models. Digital finance has a key role to play in shaping a more competitive, sustainable, resilient economy – and a more inclusive, modern, prosperous society.
A crypto-asset is a digital representation of value or a right that can be transferred or stored electronically using distributed ledger technology or similar technology. Crypto assets are a digital innovation that can streamline capital-raising processes, enhance competition and create an innovative and inclusive way of financing for consumers and SMEs. Crypto-assets can also be used as a means of payment and can present opportunities in terms of cheaper, faster and more efficient payments, in particular on a cross-border basis, by limiting intermediaries.
In accordance with the 2020 digital finance strategy, the EU adopted a comprehensive legislative framework that regulates the issuing of crypto assets as well as the services provided in respect of crypto-assets. The Regulation on the Markets in Crypto-Assets (MiCA) covers the crypto-assets and related services and activities that are not covered by other Union legislative acts on financial services.
This dedicated and harmonised framework for markets in crypto-assets will support innovation, will provide for the proportionate treatment of issuers of crypto-assets and crypto asset service providers to scale up their business cross borders, and provide significant benefits in terms of cheaper, faster and safer financial services and asset management.
Policy making timeline
- 22 February 2024Legislation - Crypto-assets (MiCA)
- 8 November 2023Legislation - Crypto-assets (MiCA)
Launch of a 4-week feedback process on 4 delegated acts in view of their adoption.
End date: 6 December 2023 - 29 June 2023Legislation - Crypto-assets (MiCA)
The Markets in Crypto-assets Regulation (MiCA) came into force.
- 9 June 2023Legislation - Crypto-assets (MiCA)
Publication of the Markets in Crypto-assets Regulation (MiCA) in the Official Journal.
- 30 June 2022Political agreement - Crypto-assets (MiCA)
- 24 September 2020Legislative proposal - Crypto-assets (MiCA) & digital operational resilience (DORA)
Digital finance package containing
- a digital finance strategy with
- legislative proposals on crypto-assets to draw on the possibilities offered by crypto-assets, while mitigating risks for investors and financial stability (including MiCA)
- legislative proposals for an EU regulatory framework on digital operational resilience: prevent and mitigate cyber threats (including DORA)
- legislative proposals on crypto-assets to draw on the possibilities offered by crypto-assets, while mitigating risks for investors and financial stability (including MiCA)
- a renewed strategy for modern and safe retail payments
- a digital finance strategy with
- 3 April 2020Consultation - Digital finance strategy
The Commission launched a consultation on a new digital finance strategy for Europe / FinTech action plan.
End date: 26 June 2020 - February 2020 - July 2022Events and call for projects - Digital finance outreach
The digital finance outreach was a series of events and call for projects focusing on digital finance and digital innovation in the financial sector. The aim of these events is to present, inform and shape the EU digital finance strategy.
- 19 December 2019Consultation - Crypto-assets & digital operational resilience
The Commission launched two consultations
The MiCA framework intends to address the key risks which have appeared in recent crypto asset market, such as
- prospective customers and holders of crypto-assets should be informed about the characteristics, functions, and risks of crypto-assets they intend to purchase
- to ensure market integrity and reduce the risks of fraud, MiCA introduces organisational, operational, and prudential requirements for issuers of crypto assets and crypto asset service providers, such as trading venues or wallets
- to prevent market manipulation and insider trading (market abuse), MiCA provides specific rules aiming at avoiding hacks and bugs in the blockchain, requiring the establishment of adequate IT security procedures and systems in place to guard against cyber risks and IT failures
- to ensure that risks of money laundering, terrorist financing and sanctions circumvention are mitigated, crypto asset service providers covered by MiCA are included in the list of “obliged entities” under the anti-money laundering framework (AML) and shall comply with the AML/CTF regulatory framework
Basic information
Delegated and implementing acts
Transposition by EU Member States
Legislative history
- Original legislative proposal for the MiCA Regulation
- Impact assessment accompanying the legislative proposal for the MiCA Regulation
- Executive summary of the impact assessment accompanying the legislative proposal for the MiCA Regulation
- History of the legislative initiative on an EU regulatory framework for crypto-assets