DLT – Official Blog of UNIO

Ana Filipa Machado Ribeiro (Student at the School of Law of the University of Minho | Winner of the 2023 UMinho Award for Undergraduate Research)

▪

Initial considerations

In an era where digital transformation is reshaping the financial landscape, the European Union (EU) has taken a pivotal step towards harmonising the burgeoning realm of crypto-assets with the introduction of the Markets in Crypto-Assets (MiCA) Regulation. As we delve into the intricacies of the MiCA Regulation, it is essential to understand its objectives, the classification of crypto assets it covers, and the broader implications for European citizens and the digital economy at large. The following discussion offers a comprehensive exploration of the MiCA Regulation, also considering criticisms of the legislative adoption practised by the Union, while seeking to ascertain what advantages (if any) it offers European citizens.

MiCA – Statement of reasons

The EU has presented a Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets – MiCA Regulation. This legislative proposal is part of the Digital Finance Package, understood by the EU itself as a set of measures that include a new strategy on digital finance for the EU financial sector,[1] aimed at promoting and supporting the potential of digital finance in terms of innovation and competition, while simultaneously mitigating inherent risks. Thus, the EU is prioritising the preparation of Europe for the digital age and creating a future-ready economy, serving its citizens.

Continue reading →

Catarina Ferreira (Master’s student in European Union Law at the School of Law of the University of Minho)

▪

1. The blockchain technology

Blockchain is commonly known as the underlying technology used in Bitcoin. This “new” and revolutionary technology, whose roots are ancient, has been introduced (as we know it) in 2008 when Satoshi Nakamoto released the Bitcoins’ white paper. In the white paper, Nakamoto presented a decentralized payment model based on cryptography and using blockchain technology. This idea would allow a move forward from the traditional model, based on trust and relying on an impartial third, and achieving currency decentralization (being possible to perform direct transactions between two parts).

It cannot be denied that blockchain is a new paradigm, a new information technology with tiered technical levels and multiple applications for any form of asset^[1], going beyond the financial sector. Nowadays, blockchain’s impacts are being compared to the ones that followed the development of the Internet. So, understanding what is blockchain and the ideology behind it, is a requirement for those who want to apply the law without damaging the technology.

Before clarifying what blockchain is, it should be noticed that since Bitcoin’s blockchain many others have arisen. Nonetheless, there are commonalities between all blockchains, and in this work, we’ll be discussing all those commonalities and not a specific blockchain.

Continue reading →