Europe's mica comes into force on Sunday and heralds a new age of transparent crypto regulation

• The Mica Ordinance (Markets in Crypto-Assets) is a legal framework created by the European Union for regulating crypto-assets and associated services in the region.
• Mica was adopted by the European Parliament in 2023 and comes into force on Sunday, but not at once.

mica ensures regulatory clarity in the entire market for digital assets in the euro zone and makes Europe one of the first western countries that implement a clear framework on which crypto exchanges, companies for digital assets and issuers of stable coins can be adhered to in order to be compliant.

The framework is intended to protect European investors from fraud and risks on the cryptoma markets and at the same time promote innovation, economic competitiveness and the interests of the euro zone.

mica urges innovations in his provisions to stable coins, which will make it possible to replace the stable coins denominated in euros in dollars. According to the new rules, stable coins are treated as electronic money, so that the issuers are subject to the same requirements as traditional banks and money transfer companies, including a 1-1 repayment in euros.

The frame urges courageous reforms, but also emphasizes the protection of European investors by obliging providers of digital services to acquire licenses as a digital asset service provider (DASP), Virtual Asset Service Provider (VASP) or Crypto Asset Service Provider (CASP).

global stablecoins are not permitted under mica, and stable coins that are linked to other cryptocurrencies must primarily meet the European license requirements for E. This would bring about compliance with supervisory, financial crime and other regulations.

In order to promote jobs and economic growth, licensed companies must maintain a local presence within the EU that serves them as the basis for their European activities.

Although Mica is progress, it is not without mistakes. His defects include the costs of compliance that could burden smaller crypto bonds and service providers, vague (practically non -existent) provisions on decentralized finances and a lack of flexibility in some provisions, such as those for stable coins.