The UK won’t be “copying” the EU’s Markets in Crypto Assets (MiCA) legislation, but will instead look to embrace a “bespoke approach for competitiveness” in crypto regulation, said the chair of the UK all-party parliamentary group (APPG) on crypto and digital assets.
Speaking at CCDAS 2023, Dr. Lisa Cameron MP said, “I don't think there's going to be any copying of MiCA,” adding that, “obviously where things are working, the UK doesn't want to invent something entirely new—but we have to have what fits here.” She added that bespoke crypto legislation would give the UK a “competitive edge.”
The APPG is currently looking at “international best practice,” around crypto legislation, Cameron said. “We've been to Zug, we've been speaking to legislators there. We've been arranging to go to Paris and Brussels, and we're thinking also about engaging with Singapore and with Dubai.” She added that as well as drawing inspiration from overseas regulators, the country is aiming to take a “bespoke approach for the framework that we want to set here.”
Cameron added that there will need to be “some sort of interoperability as well, globally, and a set of standards that overarches things—although different jurisdictions will do their own thing to some degree.”
What is MiCA?
The European Union’s Markets in Crypto Assets legislation is a set of regulations governing the issuance and provision of services relating to cryptocurrencies, stablecoins and other digital assets.
The legislation requires that any company deemed a “crypto asset service provider” (CASP) and looking to publicly offer a crypto asset will need to produce a white paper disclosing information including details of the issuer, what they will do with the capital raised, the underlying technology and what rights or obligations are attached to the asset.
Passed in April 2023, MiCA has been hailed as a landmark in crypto regulation, with Stefan Berger, the MEP who led the bill’s creation, stating that Europe is now the “first continent with comprehensive regulation for crypto assets.”
Speaking at CCDAS, Dr Cameron said of MiCA that the UK APPC is “learning about it, and we’re pleased it’s there. And we feel that it’s a great step.” She cited recent research showing that “Not just is MiCA good for consumers, for protection, but also when you have that clarity, it brings investment—so a lot of investment is now moving to the EU because of MiCA.”