Markets in Crypto-Assets Regulation (MiCA) Regulation (EU) 2023/1114
- Issuing authority
- European Union
- Effective date
- Stablecoin rules apply from 30 June 2024. Most MiCA provisions, including the CASP licensing regime, apply from 30 December 2024. Transitional arrangements for existing CASPs may apply until 1 July 2026, depending on the Member State.
- Scope
- All EU Member States
Key requirements
The EU's first comprehensive crypto law. Anyone offering crypto services in the EU exchanges, custodians, wallet providers needs a MiCA licence from their national regulator. Covers stablecoins (asset-referenced tokens and e-money tokens), market abuse rules and whitepaper requirements for new tokens. Doesn't cover NFTs or fully decentralised DeFi.
Quick Summary
MiCA is the European Union's first comprehensive law for cryptoassets. It introduces common rules for crypto businesses across the EU, including licensing requirements for Crypto Asset Service Providers (CASPs), rules for stablecoins, consumer protection measures, and safeguards against market abuse.
What is it?
MiCA is the EU's rulebook for the crypto industry. Before MiCA, each Member State had different approaches to regulating crypto businesses. MiCA creates one set of rules across the EU, making it easier for crypto firms to operate while improving consumer protection and reducing financial crime risks.
Who does it apply to?
- Crypto Asset Service Providers (CASPs)
- Crypto exchanges
- Crypto custodians
- Wallet providers
- Stablecoin issuers
- Crypto trading platforms
- Financial institutions offering crypto services
- AML and compliance professionals
Why does it matter?
MiCA gives crypto businesses greater legal certainty while helping make the crypto market safer and more transparent. It introduces licensing requirements, sets standards for stablecoins, and strengthens oversight of firms providing crypto services across the EU.
What should firms do?
- Determine whether they need authorisation as a Crypto Asset Service Provider (CASP).
- Review whether any cryptoassets they issue fall within MiCA's scope.
- Update governance, compliance, and risk management arrangements to meet MiCA requirements.
- Prepare and publish cryptoasset white papers where required.
- Review AML controls alongside MiCA obligations.
- Train staff on the new regulatory framework and monitor guidance issued by national regulators and the European Supervisory Authorities.
AboutAML Breakdown
MiCA is often described as the EU's crypto regulation, but it does more than introduce licensing. It creates a single regulatory framework for crypto businesses across the EU, making it easier for firms to operate in multiple Member States under one set of rules. MiCA also works alongside the Transfer of Funds Regulation (TFR). A simple way to think about it is this: MiCA regulates crypto businesses and cryptoassets. TFR regulates the information that must travel with crypto transfers to help prevent money laundering. Together, these two regulations form the foundation of the EU's new crypto regulatory framework.