The crypto-asset market has seen several ups and downs, market participants have launched numerous crypto-asset and DLT-based initiatives, and some crypto-asset exchanges have collapsed or been hacked in an unregulated environment with little or no transparency, stability and investor protection. It is therefore great news that the first European legislation governing crypto-assets (MiCA) is expected to be adopted by the European Parliament by 21 April 2023. The objective: beyond the fight against money laundering and terrorist financing, MiCA provides a regulated framework for customer protection, financial market integrity and financial stability.
Legislation that we at the ABBL are convinced will have a positive impact on the crypto-asset sector in Luxembourg. It allows for new ways of issuing and distributing new types of assets, as well as the provision of all related services, within a regulated framework that also takes into account investor protection and sustainability aspects. As MiCA brings a European passport for crypto asset licences, which means that an authorisation in one EU country allows operations throughout the EU without having to register separately in each country, it will be easier for banks to offer cryptocurrency related services as they will be able to transact with fully regulated crypto counterparties.
Once approved, MiCA will apply directly across the EU without the need for national transposition in each member state. The ABBL will continue to participate in the dialogue with regulators to find answers to questions that are not detailed in the text.