"MiCA" Regulation

Currently, the legal and regulatory framework for co-investment platforms, the use of crypto-assets, and NFTs is constantly evolving and adapting as new technologies and business models emerge. In the European Union, the most recent regulation is the MiCA (Markets in Crypto-Assets) Regulation, which aims to establish a clear regulatory framework for the use of crypto-assets within the EU.

The MiCA regulation is currently in progress. Its main goal is to provide a harmonized regulatory framework for crypto-assets across the EU, which will help foster innovation while ensuring consumer protection. Some of the key aspects of the regulation include:

• Definition of key terms: MiCA clearly and precisely defines terms such as "crypto-asset," "stablecoin," and "crypto-asset exchange," enabling better understanding and application of the regulations.

• Licensing for crypto-asset service providers: The regulation establishes specific licensing requirements for providers of custody, exchange, issuance, and other services related to crypto-assets.

• Consumer protection: Rules are set to ensure consumer protection, including obligations to provide clear and accurate information about the risks and costs associated with crypto-assets.

• Prevention of money laundering and terrorist financing: Standards are established to prevent the use of crypto-assets for illicit activities such as money laundering and terrorism financing.

• Stablecoin regulation: Specific rules are introduced for stablecoins, including requirements to maintain reserves of stable assets and provide information about the currency’s stability and security.

• Supervision by competent authorities: Crypto-asset service providers will be required to register with and be supervised by competent regulatory authorities.

• Harmonization of regulations across the EU: MiCA aims to harmonize crypto regulations throughout the European Union, reducing complexity and compliance costs for companies operating across multiple countries.

Regarding co-investment platforms, there are specific EU regulations they must comply with. For instance, crowdfunding platforms (PFPs) must adhere to standards set by the Payment Services Directive (PSD2) and the Markets in Financial Instruments Directive (MiFID II). Additionally, the EU has implemented specific rules for crowdfunding platforms under the EU Crowdfunding Regulation, which focuses on transparency and investor protection.

As for NFTs, there are currently no specific regulations in the EU. However, MiCA does cover the use of non-fungible tokens, and it is expected that clear rules will be established for their use and commercialization.

It is important to note that the legal and regulatory framework for cryptocurrencies, crypto-assets, and NFTs varies by country and region. For example, in the United States, the Securities and Exchange Commission (SEC) has been working on specific regulations for crypto-assets and NFTs, while in China, the government has banned cryptocurrency trading and imposed strict regulations on exchange platforms.

In terms of regulatory thought leaders, one prominent figure is Gary Gensler, who was confirmed as Chairman of the SEC in April 2021. Gensler has been a strong advocate for crypto regulation and has stated that “the underlying technology [of cryptocurrencies] has real potential.”

A platform like Jolders can offer significant benefits to regulators by promoting transparency in transactions and ensuring compliance with regulations and legal standards. By working with a platform like Jolders, regulators can gain greater visibility into the activities of both investors and issuers in the crypto-asset and NFT markets, allowing them to more effectively monitor the ecosystem and detect suspicious behavior. Additionally, Jolders can assist regulators in implementing KYC/AML measures to ensure that all participants are properly identified and verified.