The Regulation on Markets in Crypto-Assets (MiCAR): Landmark Codification, or First Step of Many, or Both?

On 29 June 2023, the long-awaited Regulation on markets in crypto-assets (MiCAR) came into force. It is the first comprehensive framework for DLT-based units (tokens or crypto-assets) in the world. This article tries to shed some light on the drivers of its creation and the remarkable speed of the parliamentary process. It discusses its key definitions and rulesets, and identifies some interesting policy decisions made by EU lawmakers. However, despite its speed and boldness, MiCAR perpetuates the existing structures of EU financial markets regulation, including some of its weaknesses such as its emphasis on national enforcement. The idea to "copy and paste" existing regulation might also lead to problems in the future because the inconsistencies between crypto-asset regulation and financial markets regulation will probably become more significant. The big question is if and how MiCAR will approach the remaining gaps, such as the regulation of decentralised finance.