A new regulation dubbed “Markets in Crypto-Assets” (MiCA) was approved by the European Parliament on April 20th, and it will take the place of the region’s existing cryptocurrency regulation framework. As a result, there will be a single set of regulations that apply to all of the European Union’s member states in place of each nation’s cryptocurrency legislation. To facilitate this transition, the French Financial Market Authority, or AMF, is drafting guidelines for the implementation of the new regulation.

New EU Regulation on Crypto-Assets: MiCA and Market Abuse Framework

New legislation for crypto assets called MiCA has been adopted by the European Union. It covers the offering and trading of digital assets, including stablecoins, and establishes a framework for combating market abuse in these transactions. This law supersedes previous national regulatory frameworks in some EU members, such as the PACTE statute of France, which contained particular guidelines for token public offerings and service providers of digital assets. Similar to the discretionary permission under the French regime, service companies delivering services on crypto-assets are required to get obligatory authorization under the MiCA rule.

A European passport will enable those who are approved under MiCA to offer their services in all EU nations. Non-fungible tokens (NFTs) are currently not covered by the MiCA legislation unless they fulfil particular requirements, according to a recent development in the European Union. NFTs won’t be governed by the same rules and regulations as other crypto-assets included by the rule, according to this. However, the European Commission will actively monitor the growth of the NFT sector and, if judged essential, within 18 months of the text’s entry into force, will propose a unique regulatory framework for them.

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The European Union has determined that Decentralised Finance, often known as DeFi, which provides crypto asset services entirely decentralized and without the need for a middleman, is not covered by the new legal framework. However, the European Commission will closely monitor the development and expansion of DeFi and determine if it requires the creation of a legal framework.

AMF Welcomes Adoption of New EU Regulation for Investor Protection and Competitiveness

The new European Union (EU) law, which intends to provide a unified regulatory framework for crypto-assets and digital asset services across the EU, has recently been adopted, and the French financial markets regulator, AMF, has declared its support for it. The AMF claims that this legislation would improve investor protection in addition to increasing the competitive advantage of French and European companies by levelling the playing field.