The Regulation Of Cryptocurrency In The European Union: Deep analysis of the MiCA UE Regulation and the relationship with the existing EU Regulations

Abstract

The primary objective of this thesis is to provide a comprehensive understanding of the legal status of cryptocurrencies within the jurisdiction of the European Union, through the contributions of the Markets in Crypto-Assets Regulation (MiCA). This comprehensive framework aims to harmonize the previously fragmented and complex landscape of crypto-asset services across the European Union Member States, strengthening investor protections in the wake of financial turbulence within the sector. This thesis examines the transformation of cryptocurrency’s legal status in the EU, assessing the implications of the blockchain phenomenon and the resultant economic innovation. The first chapter describe the basic concepts concerning the cryptocurrency and provide the sets of content for the thesis. The second chapter explore the complicate realm of blockchain and cryptocurrency, offering a summary of the blockchain technology along with a thorough insight into cryptocurrencies. Continuing, the third chapter will delve into the challenges and concerns faced by regulators, and finally offers an in-depth analysis of the MiCA Directive, clarifying its scope and providing a detailed look at its key provisions and requirements. The last chapter of the thesis, presents a exhaustive analysis of the legal status of cryptocurrency within the European Union. The chapter, in the beginning, reviews the EU laws and directives related to cryptocurrency and evaluate the application of MiCA in establishing its legal status; then it analyze the impact of the Directive on the cryptocurrency regulations at the national level and finishing with an analysis on how effectively MiCA fulfills its regulatory objectives. To conclude the MiCA regulation stands out as an encouraging stride toward crypto-asset oversight, distinguished by its comprehensive scope and with the objective to lay down a fitting regulatory structure for the crypto-asset within the Union. Globally speaking, MiCAR represents the most exhaustive, structured, and comprehensive regulatory framework for crypto-asset markets; establishing sets of rules that are more sophisticated with respect to the already existing national regulation on cryptocurrency.