Subjects of the crypto-asset market in the European Union

This article aims to identify the range of subjects of legal relations in the European Union’s crypto-asset market and to elucidate the particularities of their legal status. It substantiates that service providers for crypto-assets, crypto-asset issuers, clients/recipients of crypto-asset services (including retail holders and qualified investors), and market regulators all qualify as subjects of the EU crypto-asset market. The study analyzes the provisions of the MiCA Regulation and other EU legislative acts that determine the legal status of these market participants. It is argued that, in order to engage in the relationships arising within the EU crypto-asset market, each participant must possess the requisite legal capacity. Depending on the type of participant, this capacity may be general, special, or exclusive. The article delineates the extent of legal capacity required for an entity’s participation in the EU crypto-asset market. Special attention is given to the issue of legitimization of market participants. In particular, the general and special conditions under which crypto-asset service providers - the very backbone of the market’s infrastructure - acquire legal recognition are examined in detail. It is shown that a key characteristic of their status is the narrowing of their capacity to an exclusive form: such providers may only hold and exercise the rights and obligations strictly necessary for their specified activities, while engaging in other types of market operations is prohibited. The legal status of crypto-asset issuers is also explored. These entities, which control the process of creation of crypto-assets, play a pivotal role in ensuring stability, transparency, and the protection of the interests of both crypto-asset holders and e-money token holders across the European Union. The article further identifies the distinctive features of the legal status of retail holders and qualified investors as separate categories of clients and service recipients within the EU market. The regulatory framework governing the activities of market regulators is analyzed, with particular focus on national competent authorities (NCAs), the European Securities and Markets Authority (ESMA), and the European Banking Authority (EBA). These institutions are vested with broad regulatory powers and responsibilities to guarantee market transparency, stability, and the protection of participants’ interests. In light of the findings, the authors underscore the necessity of further scholarly research into the composition of the EU crypto-asset market’s participants, especially with a view to harmonizing Ukrainian legislation with the provisions of the MiCA Regulation.