EU Markets in Crypto-Assets Regulation (MiCA)

EU regulation establishing a comprehensive framework for crypto-asset markets and service providers.

Fully applicable since 30 December 2024, the Markets in Crypto-Assets Regulation establishes the world's first comprehensive regulatory framework for crypto-assets that fall outside existing EU financial services legislation. MiCA creates a harmonised set of rules for the issuance, offering, and trading of crypto-assets, as well as for the authorisation and supervision of crypto-asset service providers (CASPs), replacing the patchwork of national regulations that previously governed the sector. The regulation covers three categories of crypto-assets: asset-referenced tokens (ARTs), e-money tokens (EMTs), and other crypto-assets.

MiCA applies to a broad range of market participants, including issuers of crypto-assets, operators of trading platforms, exchange services, custody and administration providers, advisory services, and portfolio management services for crypto-assets. Any entity offering these services to EU clients must obtain authorisation as a CASP from a national competent authority, or benefit from a transitional period that allows existing providers to continue operating while seeking authorisation. Credit institutions and certain existing regulated financial entities can provide crypto-asset services under their existing licences, subject to notification requirements.

Key obligations for CASPs include meeting capital requirements, implementing governance arrangements, segregating client assets, maintaining complaint handling procedures, and complying with conflict-of-interest and outsourcing rules. Issuers of ARTs and EMTs face specific requirements, including the publication of a white paper, reserve asset requirements, and redemption rights for holders. Stablecoin issuers must maintain adequate reserves, invest them in secure assets, and submit to supervisory oversight by national authorities or, for significant tokens, by the European Banking Authority. All CASPs must comply with anti-money laundering obligations under the EU AML framework.

MiCA introduces market abuse rules specifically adapted for crypto-asset markets, prohibiting insider dealing, unlawful disclosure of inside information, and market manipulation. These provisions bring crypto-asset markets closer to the regulatory standards applied to traditional securities and derivatives markets, enhancing investor protection and market integrity.

MiCA interacts with DORA, which applies ICT risk management and operational resilience requirements to CASPs as financial entities. The AML framework, including the recently adopted AMLD6 and AMLR, ensures that crypto-asset transactions are subject to the same anti-money laundering controls as traditional financial services. For businesses in the crypto-asset space, MiCA represents both a compliance burden and an opportunity: a clear and predictable regulatory framework that can attract institutional investors and legitimate market participants, while marginalising unregulated operators.

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