What is MiCA?

MiCA (Markets in Crypto-Assets Regulation) is the EU’s comprehensive regulatory framework for crypto assets and the businesses that issue or service them. It covers three categories of crypto assets:

Utility tokens, which provide access to goods or services;
Payment tokens, which are used as a means of payment or can be traded for other MiCA-regulated tokens;
E-money tokens, which are backed by fiat currencies and used to make electronic payments.

MiCA has established rules for the issuance, admission to trading, and operation of crypto assets, as well as requirements for the providers of crypto asset services. The European Blockchain Partnership (EBP) has been set up to specifically promote cooperation between member states on blockchain technology.

Who does MiCA apply to?

MiCA applies to all crypto asset service providers (CASPs) offering services to clients in the EU. This includes exchanges, custodian wallet providers, issuers of initial coin offerings (ICOs) and other CASPs. MiCA does not apply to persons who buy or sell crypto assets for their own account.

When did MiCA come into effect?

MiCA entered into force on 29 June 2023, following a majority vote of 517 Members of the European Parliament in April 2023. Implementation followed a phased schedule: rules for issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs) became applicable on 30 June 2024, and the broader CASP authorisation regime became fully applicable on 30 December 2024. The transitional grandfathering period under Article 143(3) of MiCA expired on 1 July 2026. From that date, any entity providing crypto-asset services to EU clients without a valid MiCA authorisation is in breach of EU law and must cease operations. MiCA is now the sole legal gateway to offering regulated crypto-asset services across the EU.

CASPs are recommended to stay up to date with MiCA, and consult with a legal advisor to ensure they remain compliant.