MiCA (Markets in Crypto-Assets)

MiCA, short for Markets in Crypto-Assets, is the European Union regulation (EU 2023/1114) that creates one rulebook for crypto markets in all 27 member states. It was phased in during 2024: the stablecoin rules applied from June 2024, and the full regime for crypto-asset service providers (CASPs) followed in December 2024.

MiCA covers two main groups. CASPs, such as exchanges, brokers, and custodians, must obtain a license from a national regulator before serving EU customers. Issuers of asset-referenced tokens and e-money tokens, the two stablecoin categories MiCA defines, face their own authorization and disclosure duties.

Key requirements include:

• Whitepaper: issuers must publish a standardized disclosure document before offering a crypto-asset to the public.
• Authorization and passporting: a license granted in one member state is valid across the entire EU.
• Reserve requirements: stablecoin issuers must hold liquid reserves and honor redemption at par value.
• Market-abuse rules: insider trading and market manipulation in crypto-assets are explicitly prohibited.

For users, MiCA brings stronger consumer protection, clearer disclosures, and safeguards for funds held in custody. It also led exchanges to delist stablecoins that did not comply, including restrictions on Tether (USDT) for some EU customers. For companies, one license replaces a patchwork of national regimes; EU-regulated platforms such as Bitstamp operate under this framework.

Notably, NFTs and fully decentralized DeFi protocols largely fall outside MiCA's scope. The regulation works alongside existing KYC and AML obligations, which continue to apply to crypto businesses under separate EU anti-money-laundering rules, and it parallels the VASP registration regimes used in many countries outside the EU.