The European Commission has published a Proposal for a Regulation on Markets in Crypto-assets (MiCA). The Proposal is part of the Digital Finance package, together with a proposal on a Pilot Regime for market infrastructures based on Distributed Ledger Technology.
MiCA Regulation proposal covers crypto-assets falling outside existing EU financial services legislation, as well as e-money tokens, and has four general and related objectives:
1. Legal certainty;
2. Support innovation;
3. Appropriate level of consumer and investor protection and market integrity;
4. Ensure financial stability.
Finally, MiCA proposal includes safeguards to address potential risks to financial stability and orderly monetary policy that could arise from ‘stablecoins’, which are divided into ‘significant’ and ‘non-signficant’.