The EU MiCA Directive – chances and risks from a compliance perspective
| Date | 22 May 2023 |
| Pages | 275-283 |
| DOI | https://doi.org/10.1108/JMLC-02-2023-0030 |
| Published date | 22 May 2023 |
| Author | Fabian Maximilian Johannes Teichmann,Sonia Ruxandra Boticiu,Bruno S. Sergi |
The EU MiCA Directive –chances
and risks from a
compliance perspective
Fabian Maximilian Johannes Teichmann and
Sonia Ruxandra Boticiu
Teichmann International (Schweiz) AG, St. Gallen, Switzerland, and
Bruno S. Sergi
Harvard University, Cambridge, Massachusetts, USA
Abstract
Purpose –This study aims to review the currentEU approach to regulating crypto assets. It highlights the
key points, opportunities and risks of the MiCA regulation, which is designed to provide a comprehensive
regulatoryframework for digital assets in the EU.
Design/methodology/approach –To do so, the authors extensivelyreviewed the literature and reports
from severaladvisory and watchdog bodies and international organizations.
Findings –Although MiCA is an ambitiouspiece of legislation, there are still many unresolved issues and
questions that the new regulation raises. Controversially several itemshave also been excluded from the
MiCA regulations,including decentralized finance, non-fungibletokens unless they qualify under the existing
cryptocurrencycategories, as well as central bankdigital currencies.
Originality/value –This study also addresses the Liechtenstein Token Act Regulation, which is
considered to haveserved as a model for the EU MiCA Directive and the regulation of cryptocurrenciesat the
Europeanlevel.
Keywords The EU MiCA Directive, Key risks, Liechtenstein, TVTG
Paper type Research paper
Introduction
Cryptocurrencies have become a fast-growing asset class and a significant trend in the
financial markets (Ferreira and Sandner, 2021). With the rapid development of the
cryptocurrency market, risks have begun to appear in cryptocurrency trading. These risks
include the increasing fragmentation of cryptocurrency regulation ineach European Union
(EU) member state, speculative phenomena affecting the value of individual
cryptocurrencies, as well as the lack of specific legislation and technological advances,
which have left many confused abouthow to approach these innovations. All this has led to
the need for the EU to create a comprehensive piece of legislation (Węgrzyn, 2022).
Therefore, the European Commission presented on 24 September 2020 a proposal for a
regulation on Markets in Crypto-Assets (MiCA) and amending the Directive (EU) 2019/
Compliance with ethical standards.
Disclosure of potential conflicts of interest: The authors have no relevant financial or non-financial
interests to disclose.
Research involving Human Participants and/or Animals.: Not applicable.
Informed consent: Not applicable.
The EU MiCA
Directive
275
Journalof Money Laundering
Control
Vol.27 No. 2, 2024
pp. 275-283
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-02-2023-0030
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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