28/08/25
Recent breakdowns in crypto‑asset platforms have exposed gaps in regulation. With investors facing losses and market stability at risk, stronger legal frameworks are more urgent than ever.
🔹 Understanding the Legal Framework
Crypto‑asset markets have been marked by extreme volatility, opaque governance, and high-profile collapses like Terra and FTX. These failures demonstrate clear risks to financial stability and investor protection. In response, the EU implemented the Markets in Crypto‑Assets Regulation (MiCA) in May 2023, fully applicable from 30 December 2024. MiCA imposes duties on token issuers, trading platforms, and custodial services, integrating obligations from the Digital Operational Resilience Act (DORA).
⚖️Lessons from EU Comparisons
MiCA offers a unified EU-wide approach, replacing fragmented national rules. Similar in principle to MiFID, MiCA is tailored to crypto‑specific challenges: token transparency, operational resilience, and investor safeguards. Yet it still leaves gaps, such as excluding certain DeFi services and lending operations, meaning the regulatory landscape will continue to evolve.
📌 Practical Impacts on Businesses and Investors
In Finland, MiCA’s application from end‑2024 has prompted FIN‑FSA to process authorisation applications for crypto‑asset providers while warning consumers about cross-border differences (finanssivalvonta.fi). Real-world collapses like Terra and FTX illustrate how the absence of common standards can cause investors to face harm, liquidity crises, and systemic confidence erosion.
The collapse of major crypto exchanges underlines the urgent need for legal clarity, accountability, and harmonised oversight. MiCA provides a major step forward, but regulators and market participants must remain vigilant. Businesses navigating crypto‑asset compliance, authorisation, or risk exposure can benefit from expert legal guidance. Contact NUR Legal today for tailored advice in the evolving crypto landscape.
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Emil Korpinen