Crypto-Asset Services under the Draft MiCA Regulation

Abstract

The draft Markets in Crypto-assets Regulation (MiCA) seeks to regulate crypto-asset services and crypto-asset service providers within the European Union as an area, which was mainly built on the idea of independence from the current “traditional” financial system and its regulatory framework. MiCA, inspired by the Markets in Financial Instruments Directive (MiFID II) as a cornerstone of the EU financial services regulation, now aims to change the paradigm.

The paper deploys cross-sectoral approach, focuses on examining the scope and categorising the relevant crypto-asset services compared with the investment services catalogue under MiFID II. By analysing the definitions and content of individual services, it seeks to identify possible differences and frictions. It also examines the impacts MiCA might have on how to interpret the scope of individual corresponding investment services under MiFID II, and vice versa. Further, it categorises and evaluates prospective requirements put on the crypto-asset service providers (CASPs). As a result, the paper introduces three crypto-asset service categories, emphasizes the relevant differences of MiCA and MiFID II lists, as well as provides an overview of the new requirements put on crypto-asset service providers.

Keywords: Crypto-asset services, crypto-asset service providers, investment services, MiCA, MiFID II.