The much-debated Markets in Crypto-Assets (MiCA) Regulation is expected to enter into force in early 2023. MiCA is intended to close gaps in existing EU financial services legislation by establishing a harmonized set of rules for crypto-assets and related activities and services. Among other things, MiCA imposes restrictions on the issuance and use of stablecoins. It’s part of a broader digital finance package, which, inter alia, also includes the Digital Operational Resilience Act (DORA) and the DLT Pilot Regime Regulation (which itself will start applying on March 23, 2023).
The European Parliament is expected to vote on the bill in February 2023. After formal approval by the Council of the EU, MiCA will be published in the EU’s Official Journal and enter into force 20 days later. MiCA will generally start applying after a transitional period of 18 months, meaning that MiCA will likely take effect no earlier than Q3 2024. However, the rules for stablecoins will start applying after a transitional period of 12 months and could hence take effect from spring 2024.
For more information about the topic, please read our latest Mayer Brown Legal Update.