# Crypto Regulation / European Commision / 22 September 2020 The Commission is proposing a pilot regime for market infrastructures that trade and settle transactions in financial instruments in crypto-asset form Other crypto-assets, the Commission is proposing a comprehensive framework that will protect consumers and the integrity of previously unregulated markets in crypto-assets. To ensure consumer protection, the scope of the proposed regulation is broad. It will cover not only entities issuing crypto-assets but also all firms providing services around these crypto-assets such as, for example, firms that keep customers' crypto-assets in custody (“custodian wallets”), entities that allow customers to buy or sell crypto-assets for fiat money or other crypto-assets (“crypto-asset exchanges”) The Regulation on Markets in Crypto-Assets (MICA) will cover all crypto-assets not currently covered under existing financial services legislation. This will range from utility tokens that provide access to a service, so-called ‘stablecoins' issued primarily for payments to everything in between. In the proposed regulation, these are listed as; crypto-assets, utility tokens, asset-referenced tokens and e-money tokens, with the latter two capturing the “stablecoin” universe Crypto-asset service providers will be subject to prudential requirements, organisational requirements, rules on safekeeping of clients' funds and rules on mandatory complaint handling procedures and conflicts of interest. In addition, there are specific requirements dependent on the type of crypto-asset service provider. Crypto-asset service providers (and notably trading platforms, exchanges and custodial wallet providers) will be required to have a physical presence in the EU and they will be subject to prior authorisation from a national competent authority before starting their activities. They will be subject to capital requirements, governance standards and an obligation to segregate their clients' assets from their own assets. These crypto-asset service providers will also be subject to IT requirements to avoid the risks of cyber thefts and hacks.