The Banking Executive Magazine - May Issue

MICA INTRODUCTION The Markets in Cryptoassets (MiCA) is the first regulatory framework for cryptoassets in the world. MiCA cov- ers issuers and service providers, with the aim of protecting consumers and investors while ensuring finan- cial stability and supporting innova- tion and bridging the gap between crypto firms and banks. The regula- tion, which will enter into force be- tween mid-2024 and early 2025, positions Europe as an attractive re- gion in the crypto market. This article presents a complete overview of MiCA. The overview covers the objectives, the scope, the classification of cryptoassets in the MiCA framework, the crypto-asset services providers and services con- sidered in MiCA framework, the ob- ligations for issuers of crypto-assets under MiCA framework, the impor- tance of MiCA, and key dates to note for future implementation. The arti- cle also analyses the impact of MiCA regulation on innovation and growth in Europe, and the impact on various entities including cryptoassets, cryp- toassets issuers, cryptoassets service providers CAPS, and crypto payment service providers. The article also overviews the impact on Non Fungi- ble Tokens (NFT) and Decentralized finance (DEFI). The article presents the European Banking Federation view on the impact of MiCA on banks regulatory framework. It also covers the landmark impact of MiCA on blockchain regulation and the im- pact on the legal framework of sta- blecoins. The article also draws the BANKING EXECUTIVE 8 ISSUE 173 MAY 2023 BY DR SOHA MAAD MICA MARKETS IN CRYPTOASSETS EU REGULATION HOW ARAB BANKS CAN BE PREPARED?