The evolving regulation for crypto currencies in the EU and its effects on combating financial crime. An assessment of the effects of the Regulation on Markets in Crypto assets (MiCA) in providing a comprehensive regulatory framework for crypto assets in the EU and its effects on combating money laundering and other illicit activities.

In June 2023, the first EU wide regulation for crypto Assets ‘Markets in crypto assets (MiCA) came into effect. It is the first regulation to comprehensively cover crypto assets for all countries in the European Union. The regulation not only establishes rules for achieving legal certainty, foster financial stability and provide investor protection but it is also meant to support the innovative potential of that asset class and not to overburden it with too many administrative requirements. Crypto assets are regulated according to their risk profile and stipulations are mainly provided where no other regulation is existent. The research explores whether the self-imposed objectives of MiCA are achieved and how the regulation can protect investors against illicit practices in relation to crypto assets.