EU creates legal certainty for the crypto market

• European Parliament adopts MiCA regulation
• Bitkom: "Europe sets a global standard for crypto regulation"

Berlin, 20 April 2023 - Germany’s digital association Bitkom sees today's adoption of the Markets in Crypto-Assets (MiCA) Regulation by the European Parliament as a milestone for the blockchain and crypto industry. "As the first comprehensive legal framework for crypto assets, crypto issuers and crypto service providers, MiCA provides legal certainty to an innovative and young industry," states Benedikt Faupel, Head of Blockchain at Bitkom. "Europe is a true pioneer in this young technology. With the MiCA regulation, Europe is setting a global standard for crypto regulation and will help ensure a level playing field for crypto service providers across Europe and promote trust in the industry."

MiCA requires issuers of crypto securities to publish a "whitepaper" containing detailed information about the issuer and the crypto asset issued. The whitepaper must also contain an easily understandable summary of the basic information. Additionally, MiCA expands regulations against market abuse, prohibiting insider trading and market manipulation with crypto assets. "Investors in crypto assets will be better protected under the new regulation," states Faupel. In a representative survey of 1,007 people aged 16 and over in Germany commissioned by Bitkom, three quarters (74 percent) responded that recent scandals, such as those surrounding the crypto exchange FTX, had destroyed their trust in cryptocurrencies, while 7 in 10 (70 percent) are afraid of being cheated when buying cryptocurrencies. 73 percent call for stronger regulation and monitoring of crypto exchanges by politicians in Germany and the EU.

Under the European Parliament's decision, regulators will have to develop standards and enforce them in practice over the next 18 months. "It is already evident that MiCA will influence the global crypto regulatory landscape and may inspire other countries to follow the European example," states Faupel. "The key will be how regulation is now translated into practice."