What Is MiCA?
Also known as: Markets in Crypto-Assets, MiCAR, Markets in Crypto-Assets Regulation
In short
MiCA (Markets in Crypto-Assets) is a comprehensive regulatory framework in the European Union that introduces common licensing, transparency and investor protection rules for crypto-asset issuers and crypto-asset service providers; it was adopted in 2023.
Before MiCA, EU member states regulated crypto assets with different national rules. The regulation unifies this fragmented structure in a single framework. When crypto-asset service providers (CASPs) such as exchanges, custodians and brokerages obtain a license from one member state, they can offer services across the whole EU with that license (passporting right). Token issuers must publish a whitepaper containing certain information.
The regulation includes special rules for stablecoins. Those pegged to a single official currency are classified as e-money tokens (EMT), and those based on other values or a basket of assets as asset-referenced tokens (ART); issuers are subject to reserve, authorization and reporting obligations. The stablecoin provisions have applied since June 2024 and the other provisions since December 2024; transition periods that vary by member state are provided for existing service providers.
While MiCA has been welcomed by many companies for bringing legal clarity to the market, it has been criticized for effects such as compliance costs and restricted access to some stablecoins on platforms in the EU. Fully decentralized services and most unique NFTs have been left out of scope. In Turkey, crypto asset service providers have been made subject to the authorization and supervision of the Capital Markets Board (SPK) with the legal regulation made in 2024.
Last updated: · This content is for information purposes only and is not investment advice.