Markets in Crypto-assets (MiCA) is a proposal made to the European Commission in 2020 (as part of a much broader Digital Finance package) that is aimed at streamlining the development of distributed ledger technology (DLT) and virtual asset regulation in the European Union (EU). It also covers the aim of the Commission to protect cryptocurrency users and investors.
MiCA places a focus on stablecoins, which, according to the proposal, should be treated like any other regulated financial instrument. The rules that will be made in accordance with the proposed regulation will cover issuers of cryptocurrencies and service providers. Some of the proposed requirements by MiCA are drafted to enable asset issuers and providers to incorporate themselves as legal entities and register their office. MiCA is expected to come into effect during 2023/2024 if all goes to plan.