17/05/2023 Alexander

What does MiCA cover?

Pawel Kuskowski talks to Magnus Jones, Nordic Blockchain & Innovation Lead at EY Tax & Law about MiCA. MiCA was first supposed to regulate the ICO market in 2017 which shows that the crypto industry moves faster than the regulators. This is why NFTs are not covered in this iteration. Current regulations in Europe seek to protect consumers, protect professional investors, ensure financial stability in the markets and encourage innovation.

DeFi players like DEXs and DAOs want to be compliant but they need to introduce AML measures gradually rather than overnight. With MiCA, there is a lot of administrative burden which comes with complying and there is the risk that new innovations like new token classes are not covered.