Utility tokens, markets in crypto assets regulation (MiCAR), and the costs of being public

David Florysiak

Chapter 6 in The Elgar Companion to Decentralized Finance, Digital Assets, and Blockchain Technologies, 2024, pp 113-126 from Edward Elgar Publishing

Abstract: Digital platforms publicly offering utility tokens to consumers and investors or listing tokens on a trading platform within the EU need to comply with the “Markets in Crypto Assets Regulation” (MiCAR) beginning in 2024, which results in significant direct and indirect costs for issuers. The offering requires extensive mandatory disclosure of information in a white paper, resulting in significant financial consulting and legal fees for compliance, but minimizes litigation risk, and maximizes offering success. The listing requires continuous mandatory disclosure of insider information as a prevention of insider dealing and market manipulation, similar to issuers of financial securities in the EU. Due to the relatively high costs of being public, I expect only larger digital platforms to list their tokens. The regulation is a step in the right direction since it protects consumers and investors, and allows innovation by preventing token market failure due to a large fraction of fraud token issuers.

Keywords: Business and Management; Economics and Finance; Innovations and Technology (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035307760.00011 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:22115_6

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().