European Regulators Review Early Impact of MiCA Full Application

One year into the full application of the European Union's Markets in Crypto-Assets Regulation, ESMA and national competent authorities are conducting an early review of how the regime is bedding in. The framework applies across the EU and covers stablecoin issuers, crypto-asset service providers and various market abuse rules.

Regulators have publicly flagged concerns around the reliance on non-EU issuers of large stablecoins and the operational readiness of some smaller providers to meet capital, custody and disclosure requirements. Several jurisdictions have granted transitional relief that expires over the coming months.

The European Commission is also expected to consult on possible refinements to the regime, particularly around decentralised finance, which is largely out of scope of the current text.