September 23, 2023

Volume XIII, Number 266


September 22, 2023

Subscribe to Latest Legal News and Analysis

September 21, 2023

Subscribe to Latest Legal News and Analysis

September 20, 2023

Subscribe to Latest Legal News and Analysis

MiCA and Crypto Transfer Rules Approved by the European Parliament

After many delays, the European Parliament has approved the long-awaited proposed regulation on markets in crypto-assets (MiCA), alongside the proposed regulation on information accompanying transfers of funds and certain crypto-assets (the Recast EU Wire Transfer Regulation, or WTR2).

The aim of the draft regulations is to create a uniform legal framework for crypto-asset markets in the EU, thereby making the EU one of the first major jurisdictions to have formal legislation regulating crypto-assets. The texts now require formal endorsement by the European Council, after which they will be published in the EU Official Journal. We expect that they will enter into force in June, with the majority of the provisions of MiCA expected to apply in 2024.

For firms preparing for the application of MiCA, focus will soon turn to the European Securities and Markets Authority and the European Banking Authority, which are responsible for the various technical standards required thereunder. It is only once we have these technical standards that we will see the granular details of how MiCA will be applied.

Set out below are brief overviews of each of the legislative measures. A statement released by the European Parliament is available here and the approved texts of MiCA and WTR2 are available here and here.


MiCA is designed to regulate those crypto-assets that are not already covered by existing EU financial services legislation, such as the Markets in Financial Instruments Directive. Key provisions include transparency, disclosure, and authorisation requirements for persons issuing crypto-assets (including asset-reference tokens and e-money tokens) in the EU. MiCA also extends the EU’s market abuse regime to crypto-assets. Notably, MiCA does not cover non-fungible tokens and decentralised finance.


WTR2 aims to ensure that, as is the case with traditional money transfers, transfers of crypto-assets can be traced and blocked if they are suspicious. WTR2 implements the so-called ‘travel rule,’ pursuant to which information on the source of the asset and its beneficiary are linked to any given transaction.

©2023 Katten Muchin Rosenman LLPNational Law Review, Volume XIII, Number 153

About this Author

Christopher Collins Katten Law Firm London, UK

Christopher Collins advises clients across the financial services industry on regulatory and compliance matters and in relation to all types of financial instruments. He represents a wide variety of European and non-European clients including proprietary trading firms, investment managers, hedge funds, broker-dealers, trading venues and clearing houses.

Chris joined Katten Muchin Rosenman UK LLP as a trainee in 2016, subsequently qualifying as a solicitor. Prior to starting his training contract, Chris worked in the legal and compliance...

+44 (0) 20 7776 7662
Neil Robson, private equity fund managers counselor, Katten Law Firm, London

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...