We are delighted to present the second publication in our BC4EU Policy Papers series — this time diving into one of the most pivotal developments in the European digital economy: the Markets in Crypto-Assets Regulation (MiCA)!

These educational papers aim to demystify key legislative and policy developments in blockchain and Web3, raising awareness and promoting a foundational understanding of their implications for Europe’s economy, innovation ecosystem, and global competitiveness.

This edition on MiCA comes at a crucial moment, as the EU prepares to fully implement the regulation from December 2024. Drafted collaboratively by our members and shaped by insights from our Advisory Council and leading experts, this paper provides timely analysis and industry perspective on the impact of MiCA across the crypto and blockchain landscape.

As outlined in our position, we believe MiCA represents a milestone achievement for the EU — delivering long-awaited legal certainty and harmonised rules across Member States. It creates a solid foundation for Crypto-Asset Service Providers (CASPs) and token issuers to operate with confidence in the single market, while reinforcing the EU’s role as a global regulatory pioneer.

However, the work doesn’t end here. We caution against over-regulation or premature additions under Level 2 and Level 3 measures that could unintentionally dampen innovation and investment. As other global jurisdictions move toward more permissive or innovation-friendly approaches, the EU must remain agile and pragmatic in its implementation of MiCA to avoid disadvantaging its own digital sector.

Our message is clear: MiCA is a start — not the finish line. Building on this regulatory clarity, we now need to focus on the broader enablers of a thriving European blockchain ecosystem: adequate funding, access to talent, and strong investment incentives. Only with this full-spectrum support can the EU realise its ambition of becoming a global leader in Web3 innovation.

Stay tuned for our next educational papers, which will cover themes including tokenisation, financial crime, and the broader societal use-cases of blockchain beyond finance.

Want to contribute your voice to these discussions? Join our mission to shape a digital Europe that fosters innovation, protects users, and leads with purpose.

Contact us at: secretariat@blockchain4europe.eu