Deloitte Legal Webcast "Legal Update #03/2025"

The key provisions of the Markets in Crypto Assets Regulation – Regulation (EU) 2023/1114 (MiCAR) are to be applied throughout Europe from December 30, 2024. The regulation creates a uniform legal framework for crypto-assets across Europe, with rules for both the primary and secondary markets. Trading in crypto securities (secondary market), which has so far been subject to inconsistent regulation, will be subject to a Europe-wide licensing requirement. In our webcast, we provide an overview of the main regulatory content of the Regulation and the associated organizational and operational requirements for licenses. At the same time, we show how the new uniform legal framework can be used to open up markets through uniform licensing procedures, EU passporting and legally compliant implementation and scaling of business models across Europe.

In discussing the content of the regulation, we focus in particular on the following elements:

• Harmonized Legal Framework: MiCAR establishes uniform rules for crypto-assets across all EU member states, creating a clearer regulatory environment for businesses operating in the crypto sector.
  
• Definition of Crypto-Assets: MiCAR defines various types of crypto-assets, including "cryptocurrencies," "stablecoins," and other digital assets. It establishes clear rules for the issuance, trading, and custody of crypto-assets.
• Consumer Protection: MiCAR includes strict requirements for transparency, information, and risk management to protect the interests of investors. For example, providers must deliver detailed prospectuses outlining potential risks and characteristics of the crypto-assets.
• KYC/AML Requirements: Companies offering crypto-assets must comply with stringent Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations. 

In discussing the implications for banks, financial service providers, fintechs and payment service providers, we explain and elaborate on the advantages of the regulation summarized below:

• Legal Certainty and Clarity: The introduction of a clear regulatory framework provides a reliable basis for dealing with crypto-assets. This reduces legal uncertainties and the risk of inadvertently violating laws.
• Access to the European Market: MiCAR enables companies to offer their services across the entire EU as long as they meet the regulatory requirements. This facilitates expansion into the European market and improves market opportunities.
• Competitive Advantage: Companies that offer MiCAR-compliant products and services early on can position themselves as pioneers and build trust with customers.
• Better Integration of Crypto with Traditional Financial Systems: MiCAR encourages the seamless integration of crypto-assets into existing financial systems. Banks could offer crypto services such as custody, trading, and liquidity, while FinTechs and payment service providers could integrate crypto payment processing and transactions into their platforms.
• Increased Market Acceptance: Since MiCAR strengthens consumer protection and fosters market integrity, this could increase the acceptance of crypto-assets among the general public. This is beneficial for all companies involved with crypto-assets.
• User-Friendly Innovations: Banks and FinTechs could develop new, user-friendly products and services based on MiCAR regulation, such as crypto-backed payment services, crypto investment products, or stablecoin-based payment processing.

The webcast will be hosted by the well-known blockchain and crypto expert Alireza Siadat (Partner, Deloitte Legal, Frankfurt) and the blockchain expert and head of the Deloitte Blockchain Institute, Jens Hermann Paulsen (Director and Lead Web3 & Digital Assets, Deloitte, Hamburg).

After their presentations, the speakers will of course be available for a detailed Q&A.

Please feel free to submit your questions for the Q&A session when you register.

We look forward to your participation!

Information

Webcast in German language – please feel free to contact our experts for explanations in English language. 

For organizational questions, please contact

Sabine Sander-Schweden

Tel: +49 403 7853 831 
E-Mail: ssander-schweden@deloitte.de

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