Not on the money

Competition concerns in the EU Markets in Crypto-Assets Regulation

by Dr Jón Helgi Egilsson

The introduction of the Markets in Crypto-Assets Regulation (MiCAR) by the European Union, which comes into effect on 30 June 2024, aims to create a comprehensive regulatory framework for cryptoassets, including e-money tokens (EMTs). However, MiCAR has raised significant antitrust concerns, primarily how it unfairly favours banks over other market participants. This article examines these issues and argues that MiCAR, rather than fostering innovation and competition, appears to prioritise the interests of traditional banks, and in doing so, increases financial instability and systemic risks, undermining the EU's e-money legislation and singleness of money, in addition to creating a less competitive market environment.