MiCA will enter into force on 29 June 2023 and will apply from 30 December 2024. However, the regulation will apply to e-money tokens and asset-referenced tokens from 30 June 2024.

The new transfer of funds regulation will also enter into force on 29 June 2023 and apply from 30 December 2024. 

MiCA puts in place a comprehensive EU level legal framework for cryptoasset issuers and service providers including compliance with the anti-money laundering rules. The new rules cover issuers of utility tokens, asset referenced tokens and stablecoins. It also covers service providers such as trading venues and the wallets where cryptoassets are held. This regulatory framework aims to "protect investors, preserve financial stability, while allowing innovation and fostering the attractiveness of the cryptoasset sector."

The updated rules regarding transfers of funds extends the scope of the rules to transfers of cryptoassets. This ensures "financial transparency on exchanges in cryptoassets and provides the EU with a solid framework that complies with the most demanding international standards on the exchange of cryptoassets, ensuring that these are not used for criminal purposes." 

Under the new rules, cryptoasset service providers are obliged to collect and make accessible certain information about the sender and beneficiary of the transfers of cryptoassets they operate, regardless of the amount of cryptoassets being transacted. This ensures the traceability of cryptoasset transfers in order to be able to better identify possible suspicious transactions and block them.

The DLT Pilot Regime Regulation provides a legal framework for the trading and settlement of transactions in cryptoassets that qualify as financial instruments within the meaning of the MiFID II Directive (2014/65/EU) to allow for the trading and settlement of "tokenised" securities. Cryptoassets that are not financial instruments will fall to be regulated under the regulatory framework established under the proposed Markets in Cryptoassets (MiCA) Regulation.

The DLT Pilot Regime Regulation also makes certain amendments to the MiFID II Directive (2014/65/EU), the Markets in Financial Instruments Regulation (600/2014) (MiFIR) and the Central Securities Depositories Regulation (909/2014) (CSDR). This is necessary as pre-existing financial services legislation was not created with DLT and cryptoassets in mind and includes provisions that could potentially limit the use of blockchain technology.

The DLT Pilot Regime Regulation came into force on 22 June 2022. It will apply in EU member states from 23 March 2023, except for Articles 8(5), 9(5), 10(6) and 17, which apply from 22 June 2022, and Article 16, which will apply (retrospectively) from 4 July 2021.