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MiCA regulation is getting closer

Almost two weeks ago the European Commission, the executive branch that proposes legislation for the European Union, urged its members to agree to its Crypto-Asset Markets regulations this fall.

Commissioner Mairead McGuinness stated that this was due to the fact that "crypto assets are rapidly evolving, allowing local companies to enter the market while attracting retail investors." She further announced that the Commission expects to finalize its sandbox proposal for financial products based on distributed ledger technology (DLT) by the end of the year.

Not long after, this past Wednesday, the European Council, which guides the EU's political agenda, announced its position on the Crypto Assets Markets (MiCA) framework and the Digital Operational Resilience Act (DORA), which means that the Council and the European Parliament can now start debating the initiative before it is finally passed as legislation.

Unsurprisingly, the Council's position says that issuers of tokenized assets should be subject to stricter obligations than issuers of other crypto assets. It's also worthy of note that, for the Council, tokenized assets "should not require an additional authorization under the MiCA to be issued." It considers that the MiCA regulation does not apply to tokens that represent unique services or real assets, such as "product warranties or real estate."

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