The MiCA (Markets in Crypto-Assets) law is a European regulation which aims to regulate crypto-assets which are not covered by existing rules on financial services. It applies to issuers and service providers of crypto-assets, and provides for transparency, authorization, supervision and investor protection requirements.
The MiCA law distinguishes three types of crypto-assets according to their reference to other assets, commodities or currencies:
- Coins referenced to other assets, commodities or multiple currencies, which are supervised by the European Securities and Markets Authority (ESMA);
- Coins referenced to a single fiat currency, such as certain stablecoins, which are supervised by the European Banking Authority (EBA);
- All other tokens, like those linked to a good or service, which are supervised by the platforms that issue them.
Non-fungible tokens (NFTs) and bonds are excluded from the scope of the MiCA law, unless they meet certain criteria mentioned in the text. The European Commission will have to assess the development of these markets and the need to propose a specific regime for NFTs within 18 months from the entry into force of the text.
The MiCA law aims to protect users by strengthening transparency and putting in place a comprehensive framework for issuers and service providers that will also ensure compliance with anti-money laundering rules. The MiCA law provides for mandatory approval for providers providing services on crypto-assets (PSCA), whose requirements are close to the optional approval of the French regime introduced by the PACTE law of May 22, 2019. The providers who will be approved in MiCA law enforcement will be able to benefit from the European passport and provide their services in all EU countries.
The MiCA law also contains a framework for regulating market abuse of crypto-assets which will be applicable to any person involved in carrying out transactions in these assets. The MiCA law aims to harmonize the rules applicable to crypto-assets within the EU and to replace the national frameworks put in place by certain member states, including the French framework.
The MiCA law was adopted by the European Parliament in April 2023 and will enter into force after its publication in the Official Journal of the European Union. The AMF is preparing the transition to MiCA and is contributing to the work of drafting the implementing texts which must be published by the ESMA before the text comes into force.
