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Crypto-assets under MiCAR: a deep dive into risks, solutions, and regulatory convergence

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Abstract

This article analyses potential risks associated with crypto-assets and discusses how they are being addressed in the European Union through the implementation of the Markets in Crypto-Assets Regulation (MiCAR). It explores risks pertaining to consumer protection, financial stability, market integrity, and market fragmentation. MiCAR aims to establish a single regulatory framework by replacing bespoke national regimes with unified rules and standards to create a balanced playing field for businesses operating in the crypto-assets market and facilitate cross-border operations. The successful implementation of MiCAR is largely dependent on the regulatory convergence and on continuous collaboration and coordination among national authorities and European regulators.

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Notes

  1. Zetzsche, Annunziata, Arner, Buckley [18], p. 203–225.

  2. IOSCO: Issues, Risks and Regulatory Considerations Relating to Crypto-Asset Trading Platforms (Consultation Report) [1].

  3. BIS: Investigating the impact of global stablecoins [11].

  4. EC: Communication on a FinTech Action Plan: For a More Competitive and Innovative European Financial Sector [7].

  5. EC: Communication on a Digital Finance Strategy for the EU [9].

  6. Regulation (EU) 2023/1114 (MiCAR) [14].

  7. EC: Commission Staff Working Document, Impact Assessment [8].

  8. ESMA, EBA, EIOPA (2022), Joint ESAs warning on crypto-assets, ESA 2022 15 [6].

  9. MiCAR, Art. 2 [14].

  10. MiCAR, Art. 6 [14].

  11. MiCAR, Art. 15 [14].

  12. Giudici, Ferrarini, [12], pp. 87–107.

  13. Widdershoven [16], p. 5–34.

  14. Joined Cases C-240/98 to C-244/98 Océano Grupo Editorial SA v Rocio Murciano Quintero and Others (2000) [13].

  15. MiCAR, Art. 13 [14].

  16. MiCAR, Art. 39 [14].

  17. MiCAR, Art. 49 [14].

  18. BIS, IOSCO: Application of the Principles for Financial Market Infrastructures to stablecoin arrangements [2].

  19. MiCAR, Art 3 (1) (16) [14].

  20. MiCAR, Art. 66, 70-73 [14].

  21. MiCAR, Art. 81 [14].

  22. MiCAR, Art. 75 [14].

  23. MiCAR, Art. 77 [14].

  24. EC: Commission Staff Working Document, Impact Assessment [8].

  25. FSB: Assessment of Risks to Financial Stability from Crypto-assets. [10].

  26. MiCAR, Art. 16 [14].

  27. MiCAR, Art. 48 [14].

  28. MiCAR, Art. 35-38 [14].

  29. Directive 2009/110/EC, Art. 5 [4].

  30. MiCAR, Art. 35 [14].

  31. MiCAR, Art. 36-37 [14].

  32. MiCAR, Art. 38 [14].

  33. MiCAR, Art. 43 [14].

  34. EC: Commission Staff Working Document, Impact Assessment [8].

  35. Regulation (EU) No 596/2014 [15].

  36. MiCAR, Art. 87-92 [14].

  37. MiCAR, Art. 21 [14].

  38. Council Directive 2014/65/EC [3].

  39. Draganidis [5], p. 170–185.

  40. EC: Commission Staff Working Document, Impact Assessment [8].

  41. MiCAR, Art. 59 [14].

  42. WEF: Pathways to the Regulation of Crypto-Assets: A Global Approach [17].

References

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  2. Committee on Payments and Market Infrastructures, Board of the International Organization of Securities Commissions: Application of the Principles for Financial Market Infrastructures to stablecoin arrangements. BIS IOSCO (2022)

  3. Council Directive 2014/65/EC of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU [2014] OJ L173/349

  4. 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 pp. 7–17

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  9. European Commission, Communication on a Digital Finance Strategy for the EU (Communication) COM (2020) 591 final

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  11. G7 Working Group on Stablecoins: Investigating the impact of global stablecoins. BIS (2019)

  12. Giudici, P., Ferrarini, G.: Digital offerings and mandatory disclosure: a market-based critique of MiCA. In: Digital Finance in Europe: Law, Regulation, and Governance, pp. 87–107. de Gruyter, Berlin (2021)

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  15. Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) OJ L 173, 12.6.2014, p. 1–61

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  1. International and European Law Programme, The Hague University of Applied Sciences, Johanna Westerdijkplein 75, 2521 EN, The Hague, The Netherlands

    Aleksandra Asscheman

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Asscheman, A. Crypto-assets under MiCAR: a deep dive into risks, solutions, and regulatory convergence. ERA Forum 24, 489–500 (2023). https://doi.org/10.1007/s12027-023-00773-6

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