EU Completes MiCA Landmark Crypto Regulations Legal Text

By    23 Sep,2022

A paragraph known as a Recital introduces an EU law and explains its purpose. A recital can be utilized by supervisors and judges to determine the scope of the law even though it is not legally binding, unlike the substantive articles of the regulation.

The provision’s specifics have raised questions in the sector. The precise wording used in the legislation’s formulation, such as comparable but different Bored Apes, which suggests that issuers and trading platforms would be subject to its requirements, could influence whether in fact, the regulation covers the majority of the NFT business.

National and EU regulators “should take a substance over form approach under which the features of the asset in question should decide the qualification, not its designation by the users” when deciding whether to regulate a specific asset, the text continued.