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EU Crypto Regulation MiCA: Background, Aims, and Current Status

Background

On April 20, 2023, the European Parliament passed Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA), which aims to establish a framework for regulating crypto assets within the European Union.

Purpose

MiCA seeks to create a competitive environment in the EU that encourages the development of crypto assets. It aims to protect investors while promoting innovation and preventing illicit activities.

Current Status

As of March 5, 2024, MiCA has been adopted by the European Parliament and the Council of the European Union. It is currently undergoing further review by the European Supervisory Authorities.