MiCAR: Final Steps Towards The Legal Framework For Crypto-Assets

On 20 April 2023 the European Parliament ("EP") finally approved the regulation on markets in crypto-assets ("MiCAR"). The approved final text of the MiCAR is yet to be formally endorsed by the Council, but the EP's approval means the biggest legislative hurdle towards the MiCAR entering into force has been cleared. The approval of the MiCAR follows the finalisation of the last details of the text, after a provisional agreement on the final draft compromise was reached during trilogue negotiations in June 2022 (the draft compromise text is available here).

The MiCAR is part of a larger legislative digital finance package, which aims to develop a European approach that fosters technological development and ensures financial stability and consumer protection. Besides the MiCAR, the package includes, among other things, the Digital Operational Resilience Act, the distributed ledger technology ("DLT") pilot regime and the recast of the transfer of funds