It is intended to help streamline the adoption of blockchain and distributed ledger technology (DLT) as part of virtual asset regulation in the EU, while protecting users and investors.

[5] MiCA covers participants in the crypto-market, including crypto-asset issuers, trading platforms, exchanges, and custodian wallet providers.

A benefit of the MiCA proposal is that it permits banks, investment firms, and other financial institutions to engage in crypto-market activities, provided they have authorization under MiFID II to offer services.

Elizabeth McCaul, a member of the ECB Supervisory Board, warned of “gaps in the framework” for regulating crypto markets and that traditional approaches might not work.

[15] Société Générale was the first big bank to list a stablecoin under MiCA, in December 2023, on Bitstamp, an exchange based in Luxembourg.