The EU’s Markets in Crypto-Assets (MiCA) regulation will take full effect by the end of December, requiring additional efforts to ensure compliance. To this end, the European Parliament approved the list of European Commission members on Wednesday, including individuals responsible for overseeing adherence to digital asset regulations.
What is MiCA?
The European Union (EU), a bloc of 27 countries, became the first major jurisdiction in the world to adopt a dedicated cryptocurrency legislative framework last year, known as the Markets in Crypto-Assets (MiCA) regulation. Stablecoin rules came into force in June, while the remaining provisions are expected to take effect in December.
Key MiCA provisions include:
- Registration of Cryptocurrency Service Providers: All providers must be registered and comply with anti-money laundering (AML) requirements to enable tracking of all cryptocurrency transfers.
- Obligations for Issuers: Crypto-asset issuers must disclose detailed product information and adhere to transparency rules.
- Consumer Protection: The regulations aim to safeguard consumer rights, including requirements for wallet security and liability for asset loss.
Gender-Balanced Approach
The European Commission serves as the EU’s executive body. Each member state nominates one individual to form the Commission.
In September, European Parliament President Ursula von der Leyen proposed a gender-balanced group of commissioners and announced the list of candidates for these positions. Although none of the commissioners are exclusively focused on cryptocurrencies, the EU will still oversee MiCA compliance. Digital assets will fall under the remit of some commissioners tasked with refining cryptocurrency regulations.
The Commission has also been tasked with assessing whether additional regulation is needed.
“Under MiCA, we are required to report on recent developments related to crypto-assets, including evaluating the necessity and feasibility of regulating decentralized financial activities, crypto-asset lending and borrowing, and non-fungible tokens (NFTs),” said Marcel Haag, Director for Horizontal Policies at the European Commission.
The Commission will also need to decide whether to end the pilot project for distributed ledger technology or make it permanent. Additionally, it will examine the proposal to establish a legal framework for the digital euro, a central bank digital currency issued by the European Central Bank.
The Commission also plans to conduct a legal review of member states’ laws to determine their suitability for tokenizing financial assets, Haag noted.
Von der Leyen assigned roles for the new commissioners for the next five years. The appointed officials will oversee portfolios related to trade, climate, technology, economics, international partnerships, finance, and more.
Each commissioner will have their specific area of responsibility, but von der Leyen emphasized in her mission letters that priorities are interconnected and will influence one another.
Cryptocurrency, as a cross-sectoral topic, reflects this interconnectedness. Faustine Fleuret, President of the Web3-focused industry group ADAN, noted that the sector’s wide-ranging impact means it can “engage with everyone” in the Commission.
New Commissioners
Stéphane Séjourné
Stéphane Séjourné of France has been appointed Executive Vice President for Prosperity and Industrial Strategy, as well as Commissioner for Industry, Small and Medium Enterprises (SMEs), and the Single Market.
His responsibilities will include improving access to financing, simplifying regulatory frameworks, and fostering innovation for SMEs. He will also oversee a project called the “Horizontal Single Market Strategy,” which aims to eliminate barriers to the cross-border movement of goods and services. According to Fleuret, his duties may include oversight of cryptocurrencies.
Maria Luís Albuquerque
Maria Luís Albuquerque of Portugal will serve as Commissioner for Financial Services and the Savings and Investments Union. Her role will involve ensuring compliance with financial sector regulations and improving the EU’s supervisory framework. Albuquerque will focus on advancing digital finance and payment systems.
Additionally, she will enforce the EU’s anti-money laundering package, which targets large money transfers, cryptocurrency companies, and more.
Henna Virkkunen
Henna Virkkunen will oversee innovation in artificial intelligence, explore how digital technologies can enhance law enforcement capabilities, strengthen cybersecurity, and implement measures under the Digital Services Act as necessary to ensure online safety.
