MiCA gave Europe a common framework for cryptoasset markets

On 16 May 2023, the Council of the European Union formally approved the Markets in Crypto-assets regulation, known as MiCA. It brought covered cryptoassets, issuers and service providers into a common European regulatory framework, rather than leaving the subject solely to separate national approaches.

Common rules for a fragmented market

MiCA established a shared regulatory framework for covered cryptoasset issuers and service providers across the EU. The change addressed the rules under which businesses operate and products are offered. It did not remove the underlying market risks, leaving supervision and compliance distinct from the performance of any individual asset.