Markets in Crypto Assets

The emergence of a virtual asset as a means of saving, which can be transferred or exchanged digitally, was developed as a decentralized form of electronic currency, allowing peer-to-peer (P2P) transactions without the involvement of a centralized authority, National Central Bank (Central Bank). As the use and development of virtual payment means – a crypto-asset, which was created as an alternative to the national currency, the interest to it grew rapidly, while becoming the subject of close attention of the world regulators.

In turn, global regulators allocate a considerable number of potential threats in virtual assets, in particular.

High volatility of crypto assets, which means market instability, significant prevalence of fraud, resulting in the loss of assets, digital wallets and other metadata of crypto market participants. Use of virtual currency in favor of money laundering and sponsoring of terrorism, and other illegal activities, which create favorable conditions for criminal operations.

The absence of a common legislative framework, which leads to the lack of system regulation of the crypto industry, the system of insurance of investors/market participants, the inability of participants to claim damages, lack of evidentiary character of their rights to virtual assets. Destabilization of the economy, both nationally and globally, due to the high demand of participants/investors in the use of digital assets. Violation of the rights of consumers, investors/participants and market stability, taking into account the risks associated with crypto assets. 

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The main objectives Markets in Crypto Assets

Ensuring legal certainty by providing a sound legal framework for crypto-assets in their scope of application that is not covered by existing financial services legislation. Avoid duplication of updated AML/FT legislation by creating public registries of crypto-asset providers. Support innovation and fair competition to promote the development of crypto assets by creating a safe and proportionate structure. Protection of consumers, investors and market integrity, taking into account the risks associated with crypto assets. Financial stability, including security measures to address potential risks. This approach is consistent with consumer protection and ensures effective and consistent access to the innovative single market markets for crypto assets.

The responsibilities of under MiCA