Crypto-asset markets have become a significant part of financial markets, and access through online platforms has made investment in crypto-assets available to a broader range of retail investors. Before the adoption of MiCA, most of these assets were not covered by the harmonised EU framework for financial services. MiCA is the first comprehensive EU regulation of crypto-asset markets and systematically addresses investor protection in this field.
This master’s thesis examines whether MiCA provides investors in crypto-asset markets with a level of protection comparable to that available to investors in financial instruments markets. The comparison focuses on three mechanisms of investor protection: disclosure of information, conduct of business rules, and product regulation. The analysis shows that MiCA does not provide the same level of protection as the regime governing financial instruments markets. In disclosure, the main differences are the absence of prior approval of the white paper for most crypto-assets and the lack of a comparable short and standardised presentation of key information for retail investors modelled on the KID. In conduct of business rules, the central issue is the absence of an appropriateness assessment for crypto-asset services that do not involve advice or portfolio management. In product regulation, MiCA does not establish a general product governance regime requiring the ex ante definition of a target market and distribution strategy. Investor protection under MiCA is therefore less focused on assessing the individual investor’s position and restricting access to particular products in advance. This reflects MiCA’s broader design, which links investor protection to the development of crypto-asset markets, innovation, and fair competition.
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