New regulation for businesses operating in the segment of crypto assets
On 20 April 2023 , the European Parliament approved the long-anticipated legal framework for crypto-asset markets. The Regulation on Markets in Crypto-Assets (MiCA) is slated to come into force in the next 12 to 18 months. This is the first comprehensive regulation of this segment that will have a global impact. It aims to provide better investor protection and ensure market integrity and financial stability. Businesses operating in the field of crypto assets will thus benefit from a uniform regulatory framework that is identical across the European Union.
The legislation will have a significant impact primarily on crypto-asset issuers and service providers. In practice, the new rules may affect up to 10,000 Czech licence holders to provide services related to virtual assets, who will now be required to obtain an authorization from the crypto-asset market regulator. Conversely, services provided via fully decentralized protocols, crypto assets without an identifiable issuer, and non-fungible tokens (NFTs) will be exempt from the application of the new legal framework.
The Regulation includes a number of measures to ensure increased transparency with regard to issuing new crypto assets, among them an obligation to publish a crypto-asset white paper. In addition, it sets out operational, organizational and capital requirements on businesses, prohibits market manipulation and insider trading, and lays down rules for marketing communications.
