MiCA – Markets in Crypto-Assets Regulation (EU)

The Markets in Crypto-Assets Regulation (MiCA) is the European Union's first comprehensive regulatory framework for crypto-assets. It creates a uniform EU-wide legal framework for the issuance and trading of crypto-assets, replacing previous national-level regulatory fragmentation.

• Fully applicable from: 30 December 2024
• Single EU passport: CASPs with MiCA authorisation can operate across all 27 EU member states
• Stablecoin regulation: Strict requirements for Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs)
• Market abuse: EU-wide prohibition on insider trading and market manipulation for crypto-assets

The European Commission published its legislative proposal for MiCA in September 2020 as part of the Digital Finance Package. The aim was to provide a uniform EU framework to replace fragmented national approaches (particularly in Germany, France and Malta).

After intensive trilogue negotiations between the Commission, Parliament and Council, MiCA was adopted in May 2023 and published in the EU Official Journal in June 2023. The regulation provided for phased application dates:

• July 2024: Titles III and IV (stablecoin rules: ARTs and EMTs)
• December 2024: Remaining titles, particularly for CASPs

The EU is thus the first major economic power worldwide with a complete crypto regulatory framework.

MiCA covers three categories of crypto-assets:

• Asset-Referenced Tokens (ARTs): Stablecoins pegged to multiple assets (e.g. multi-currency basket)
• E-Money Tokens (EMTs): Tokens pegged to a single fiat currency (e.g. EUR stablecoin)
• Other crypto-assets: All other crypto-assets not otherwise regulated (including utility tokens, Bitcoin, Ether)

Exceptions: Crypto-assets qualifying as financial instruments (MiFID II), CBDCs, fully decentralised assets without issuers (for now).

• Whitepaper obligation: Issuers must publish a standardised crypto-asset whitepaper
• CASP authorisation: Crypto-Asset Service Providers require authorisation from the national authority
• Capital requirements: CASPs depending on service type (min. EUR 50,000–150,000)
• Stablecoin reserves: ARTs and EMTs must be backed 1:1 by liquid reserves
• Consumer protection: Right to redemption of EMTs at par value
• Market abuse prohibition: Market manipulation and insider trading in covered crypto-assets prohibited
• Environmental disclosure: Disclosure of energy consumption of consensus mechanism