What is MiCA?

MiCA (Markets in Crypto-Assets Regulation) is the European Union’s regulatory framework for crypto-assets, their issuers, and providers of crypto-asset services. It establishes common rules across the EU covering authorisation, disclosure, governance, consumer protection, and market conduct.

MiCA applies both to certain crypto-asset issuances and to Crypto-Asset Service Providers (CASPs), including custody providers, trading platforms, exchange services, and other regulated crypto businesses. Its main purpose is to create a harmonised framework for the EU crypto market and replace fragmented national approaches with more consistent rules.

What does MiCA regulate?

MiCA establishes rules for a range of crypto-assets and related services in the European Union. The framework covers both the issuance of certain crypto-assets and the activities of businesses providing crypto-asset services to customers.

MiCA regulates, among other things:

• Asset-referenced tokens (ARTs);
• E-money tokens (EMTs);
• Other crypto-assets that do not fall under separate EU financial services regimes;
• Issuance and offering of crypto-assets;
• Admission of crypto-assets to trading;
• Activities of Crypto-Asset Service Providers (CASPs);
• Market conduct and prevention of market abuse.

MiCA does not apply in the same way to every type of digital asset. For example, crypto-assets that already qualify as financial instruments under other EU rules are generally regulated under the relevant financial services framework rather than MiCA.

Who does MiCA apply to?

MiCA applies to several categories of market participants, primarily issuers of certain crypto-assets and businesses providing crypto-asset services in the EU.

The main categories include:

• Issuers of asset-referenced tokens (ARTs);
• Issuers of e-money tokens (EMTs);
• Offerors and persons seeking admission to trading of other crypto-assets;
• Crypto-Asset Service Providers (CASPs).

CASPs may provide services such as custody and administration of crypto-assets, operation of trading platforms, exchange of crypto-assets for funds or other crypto-assets, execution of orders, placing of crypto-assets, transfer services, portfolio management, and advice on crypto-assets.

As a general rule, a business intending to provide crypto-asset services in the EU must obtain authorisation in its home Member State. Once authorised, a CASP may provide its authorised services across the EU through the freedom to provide services or the right of establishment.

MiCA also provides a separate route for certain already-regulated financial entities, which may offer specified crypto-asset services through a notification procedure rather than a standard CASP authorisation.

What requirements does MiCA impose on CASPs?

MiCA imposes a range of organisational, prudential, and conduct requirements on Crypto-Asset Service Providers. The exact obligations depend on the crypto-asset services the company provides.

Key requirements include:

• An authorised legal entity established in the EU;
• An appropriate governance structure;
• Fit and proper management;
• Prudential safeguards or own funds requirements;
• Conflicts of interest policies;
• Safeguarding of client assets and funds;
• Complaint-handling procedures;
• Outsourcing controls;
• ICT and operational resilience measures;
• Record keeping and reporting;
• Transparent terms and customer communications.

CASPs must also act honestly, fairly, and professionally in the best interests of clients and provide clear information on risks, costs, and service conditions.

Additional rules apply to specific activities. For example, custody providers must pay particular attention to safeguarding and segregation of client crypto-assets, while trading platforms are subject to requirements on market rules, transparency, and controls against market abuse.

What requirements does MiCA impose on issuers?

MiCA regulates not only crypto service providers but also offerors and issuers of certain crypto-assets. A central requirement is the crypto-asset white paper, which provides key information about the project, the crypto-asset itself, associated rights, underlying technology, and risks.

Depending on the type of crypto-asset, requirements may include:

• Preparing and publishing a crypto-asset white paper;
• Disclosing information about the issuer or offeror;
• Describing the crypto-asset and related rights and obligations;
• Providing information on the underlying technology;
• Disclosing key risks;
• Complying with rules on marketing communications;
• Meeting governance and operational requirements;
• Additional rules for ARTs and EMTs.

For crypto-assets other than ARTs and EMTs, MiCA sets detailed white paper requirements covering the project, offer, holder rights, technology, and risks.

Asset-referenced tokens (ARTs) and e-money tokens (EMTs) are subject to separate, more specialised regimes. For example, ART issuers are subject to requirements on authorisation, reserve assets, governance, and redemption mechanisms, while EMT issuance is limited to certain regulated entities.

Examples of MiCA

MiCA applies differently depending on whether a business provides crypto-asset services or issues a particular type of crypto-asset.

Example 1. Crypto exchange

A company wants to provide exchange services and custody to customers in the EU. It may need CASP authorisation and must comply with relevant organisational, prudential, safeguarding, and conduct requirements.

Example 2. Crypto trading platform

A business operates a platform for trading crypto-assets. In addition to authorisation, it may be subject to requirements on market rules, transparency, record keeping, and controls against market abuse.

Example 3. Token issuer

A company plans a public offer of a crypto-asset that falls within MiCA. Depending on the token type, it may need to prepare and publish a crypto-asset white paper and comply with disclosure requirements.

Example 4. Stablecoin-related project

An issuer plans to launch an asset-referenced token or e-money token. In this case, specific MiCA requirements may apply to authorisation, governance, reserves, redemption, and other elements of the relevant regime.

Frequently Asked Questions

What does MiCA mean?

MiCA (Markets in Crypto-Assets Regulation) is the EU regulatory framework for certain crypto-assets, their issuers, offerors, and Crypto-Asset Service Providers.

When did MiCA start to apply?

MiCA became applicable in stages. Rules for asset-referenced tokens and e-money tokens started applying on 30 June 2024, while most of the Regulation became applicable on 30 December 2024.

Does a crypto company need a MiCA licence?

If a business provides crypto-asset services within MiCA’s scope, it generally needs CASP authorisation or another route available under the Regulation for certain already-regulated financial entities.

Does MiCA apply outside the EU?

MiCA is an EU framework. However, non-EU businesses may still fall within its scope if they effectively provide regulated crypto-asset services to customers in the EU.

Does MiCA replace AML requirements?

No. MiCA regulates market access, governance, conduct, disclosure, and other aspects of crypto businesses. AML obligations apply separately and must be addressed in parallel.

Key takeaways

1. MiCA (Markets in Crypto-Assets Regulation) is the EU regulatory framework for certain crypto-assets, issuers, and CASPs.
2. MiCA covers authorisation, governance, disclosure, consumer protection, and market conduct.
3. CASPs may be subject to specific organisational, prudential, safeguarding, and conduct requirements.
4. ARTs and EMTs are governed by separate specialised regimes within MiCA.
5. MiCA does not replace AML requirements, so crypto businesses need to address both frameworks in parallel.