The European MiCA regulation: a new era for initial coin offerings

Initial Coin Offerings (ICOs) have emerged as the most disruptive fundraising strategy of the twenty-first century, attracting global attention in both the business and legal communities. Their innovative approach to raising capital in the digital asset space has marked a significant shift in traditional fundraising methods. In recent years, however, the excitement surrounding ICOs has waned, largely due to regulatory challenges. The lack of a definitive legal framework, coupled with stringent enforcement actions, has led to a cautious approach to ICOs by industry participants and legal practitioners advising them. This Article aims to explore the potential resurgence of ICOs in light of new developments in the European regulatory landscape, focusing on the European Union’s (EU’s) Markets in Crypto-Assets (MiCA) regulation. The MiCA regulation represents a pivotal development in the legal governance of crypto-assets within the EU. It seeks to establish a comprehensive set of rules for crypto-asset markets to enhance consumer protection, foster innovation, and provide market stability.