EU prepares MiCA 2.0: New crypto rules to impact investors and stablecoins

The European Union is moving forward with the next phase of its cryptocurrency regulation, known as MiCA 2.0. Following the full implementation of the Markets in Crypto-Assets (MiCA) framework by the end of 2024, the European Commission has launched a broad consultation with market participants. This consultation includes 86 key questions designed to shape the upcoming legislation.

Industry experts anticipate the first draft of MiCA 2.0 in 2027, with new regulations expected to be approved between 2028 and 2029. A primary focus for Brussels is the increasing integration of crypto markets with traditional financial systems. The rise of tokenized bonds and blockchain-based deposits is prompting the EU to reconsider even the principle of "technological neutrality."

Consumer protection is also a significant concern, with the EU seriously considering mandatory knowledge tests for retail investors before they can engage in crypto trading. The regulation of stablecoins is set for a major overhaul. The Commission is exploring the possibility of lifting the current ban on offering yields to stablecoin holders, moving towards a model similar to the US and UK where rewards are based on usage rather than savings.

Further discussions involve granting stablecoin issuers access to central bank accounts for holding reserves, simplifying licensing procedures to avoid dual compliance with payment rules, and potentially imposing restrictions on stablecoins linked to foreign currencies. This move aims to curb the dominance of the US dollar, which currently holds a 99% share of the market. MiCA 2.0 also seeks to cover areas not addressed in the initial legislation, such as Decentralized Finance (DeFi) and prediction markets, while reassessing the need for NFT regulation amid declining investor interest.