Recently, the European Parliament and the European Commission have provisionally agreed on the regulation project aimed at the cryptocurrency market called Markets in Crypto-Asset Regulation (MiCA). We can already notice certain principles by which respective authorities worldwide will highly likely regulate the crypto asset projects. MiCA is the first forthcoming international regulation in the largest single market on the planet aimed at cryptocurrency businesses.
The European Union (EU) is ready to become a global pioneer to set the standards of a comprehensive crypto regulation that many other jurisdictions may integrate into their own crypto legislation or at least use MiCA as a reference. The planned stablecoins regulation in the United States (US) is postponed. However, there is a high chance that the US regulation may derive certain principles from the MiCA to at least partly harmonize such an international industry as crypto. That is why it is essential to understand the logic of how European lawmakers want to treat crypto businesses.
Today we can already notice and highlight the critical trends by which the international regulation of cryptocurrency is very likely to occur.
1. Crypto-asset service providers (CASPs) will be regulated similarly to financial institutions. Recognizing cryptocurrency providers as a particular type of financial institution will entail several specialized requirements that businesses must adopt. Such conditions will include:
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