As reported by CryptoPotato, last year, the European Union unanimously passed the Markets in Crypto-Assets Act (MiCA), which is considered to be the first legislation that comprehensively involves the crypto industry. MiCA is part of the DORA financial regulations, but it also makes many crypto companies consider moving most of their operations across the ocean. The document submitted by the European Securities and Markets Authority (ESMA) took into account previous feedback on companies operating outside the EU and decided to provide them with exceptions where necessary. The new terms will allow non-EU companies to provide crypto assets and services to EU citizens if reverse solicitation occurs (i.e. EU citizens explicitly request these services from the provider). This will give experienced crypto investors more legal investment capabilities when looking for niche products, while also protecting investors who are not familiar with technology from possible legal proceedings.
Although MiCA was published in June 2023, two consultation sessions have already taken place on the bill, with a third consultation session to be held in April, and the first tranche of legislation set to come into force in June 2024, with the remainder expected to come into force in December 2024.
ESMA advises investors to read the document and submit any requests about it by April 29, when the regulator will discuss it. The regulator also asked for feedback on whether crypto assets may be considered financial instruments (defined as money contracts). If a crypto asset qualifies as a money contract, it will no longer be governed by MiCA, but by another act called MiFID II.