The dramatic collapse of FTX crypto exchange has turned regulators’ heads around the world. In the European Union, many policy experts came forward claiming that the bloc’s highly anticipated Markets in Crypto-Assets legislation could have cushioned the blow or prevented the events that led up to the crash.

The MiCA framework lays down a comprehensive set of rules to regulate crypto assets and service providers like crypto exchanges, with a final vote on the legislation expected in February. Once approved, MiCA gives regulators 12-18 months to flesh out how provisions will need to be implemented.

Member of the European Parliament Ondrej Kovarik helped draft MiCA on behalf of the Parliament’s liberal-centrist Renew Group. In an interview, Kovarik weighed in on the role of MiCA in the current crypto policy climate and what the FTX debacle means for regulators.

(By Inbar Preiss)