Crypto regulation 2024: New laws will bring clarity and trust.

In April 2023, EU lawmakers passed a vote to implement a piece of regulation — Markets in Crypto-Assets Regulation — which was hailed as the most significant crypto-specific regulation in the world to date. At a high level, the law states that crypto exchanges and custodian wallet providers must be licensed, and that token issuers must follow requirements for whitepapers, transparency, reserves, and disclosure as appropriate. Furthermore, MiCA aims to combat fraud and market manipulation, thereby safeguarding consumer interests.

By creating a standardized legal framework across the EU, MiCA not only increases the accountability of service providers but also fosters consumer confidence in using and investing in crypto-assets. This harmonization also facilitates easier access to cross-border services, ensuring EU consumers benefit from a diverse and competitive market.

The cost and effort associated with doing business in multiple jurisdictions can be prohibitive for those in the crypto industry, stifling innovation and blocking new players from participating. MiCA allows market participants to provide services to customers in 27 jurisdictions while complying with a single, streamlined set of regulations.

Consistent crypto regulations across the EU also benefit consumers. With multiple jurisdictions adhering to the same stringent regulations, companies are held to a consistently high standard and consumers will not be tasked with unpacking the nuances of various jurisdictions’ regulatory standards.

MiCA Could Serve as Model for Other Jurisdictions Like the UK and Singapore