Definition ∞ The EU Regulatory Perimeter defines the boundaries within which European Union financial regulations apply to entities and activities. It specifies which financial market participants and services fall under the purview of EU laws and supervisory authorities. This perimeter helps clarify jurisdictional reach and compliance obligations.
Context ∞ The EU Regulatory Perimeter is continuously expanding to incorporate digital assets and related services, notably through legislation such as the Markets in Crypto-Assets Regulation (MiCA). A key discussion involves precisely defining which crypto-assets and services are within this perimeter, thereby determining the applicable rules for licensing, consumer protection, and market integrity. Future developments will involve ongoing clarification and adaptation of this perimeter to address new innovations and risks in the digital asset space.