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[source](https://www.linkedin.com/pulse/crypto-assets-mica-regulation-change-everything-jocelyn-schuffenecker/)




Crypto regulation within the EU is supposedly coming into effect this year with June being the key month stated. I haven't paid much attention to this since the end of last year because there actually hasn't been much news even though it is meant to be kicking off in just over 3 months time. 

Lets take a look firstly at what MiCA has stated.

3 types of Crypto assets

The regulation recognises 3 types of cryptocurrencies with those being crypto utility tokens backed by real assets, legal tender backed money tokens and crypto that does not match any of the first two mentioned which will be 99% of crypto. The first two being real assets and legal tender tokens have to comply to regulation and obtain approval from the respected financial bodies.

MiCA has some stipulations when it comes to protecting the investors which includes a set of rules covering transparency in order to prevent market abuse. Anti terrorism and money laundering is also covered with crypto's having to be aware and are deemed responsible for what happens.

Those that provides crypto services like exchanges, wallets and custodial services have to apply for a license. Only crypto's that have a whitepaper are allowed to be listed on exchanges. This is all about legitimizing crypto through trust.

Basically MiCA is used to help maintain stability, protect the investors whilst aiding technological innovation. 


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[source](https://mco.mycomplianceoffice.com/blog/be-ready-for-mica-compliance)

What About Banking?

Banks do not need to apply for a special crypto license, but are expected to roll out services welcoming crypto investors. There has been talk of being able to view your crypto assets and FIAT within one wallet if you choose and if you trust the banking system. You would have to be a complete newbie and muppet to even consider this as a good idea.

Banks have been asked to embrace the crypto industry seeing it as a new opportunity to grow their business. Some believe there is going to be reputation damage risks due to their negative stance on crypto and suddenly offering all services.

Basically as a summary there is not much new news floating around in Mid March and we have to wait a while to see what pops out and how this is worded. The only part I am interested in really is the on and off ramps opening up because that is what has been holding us back from being normal investors. 

Regulation should help fuel adoption because without any form of protection this will never happen. The EU we know has plans for blockchain usage and crypto in the near future and why they need MiCA this year. CBAM which is the Carbon Border Adjusted Mechanism is in it's three year phase where all European industries have to be fully compliant by January 2026 for all imports and exports. This we know already is being data driven on the blockchain and why they need crypto regulated fitting in with their timelines.