The EU has published a proposed regulation on cryptoassets. This would replace any existing national frameworks and introduce a mandatory regime allowing cryptoasset issuers and cryptoasset service providers to offer their services in the EU. Here, we review how the regulation came about, the main takeaways from the proposal and ask whether the move will bring clarity to the market and whether the legislation is likely to become a standard setter globally. 

Following a comprehensive consultation, the European Commission has published its legislative package for cryptoassets to bring legal certainty to the cryptoasset industry in the EU. The package includes a proposal for an EU Regulation of Markets in Crypto-Assets (MiCA) as well as a pilot regime for market infrastructures based on distributed ledger technology (DLT) that will allow for experimentation within a controlled environment under a regulator's supervision. This proposal is part of a wider Digital Finance Strategy as the EU looks to embrace the opportunities of emerging tech.

John Salmon, Technology Partner and Global Head of Blockchain at Hogan Lovells, says:

Key takeaways from the proposal

Scope and definitions

Issuance of cryptoassets

Issuance of asset reference tokens

Issuance of e-money tokens

Requirements for cryptoasset service providers

What next?