What Is MiCA and Why Does It Matter?
The Markets in Crypto-Assets Regulation (MiCA) is the EU's first comprehensive legal framework governing the crypto-asset market. After years of fragmented national regulations, MiCA introduces uniform rules for token issuers, trading platforms, and crypto-asset service providers (CASPs).
Full application began on December 30, 2024. For many entities, this means adapting operations to new requirements — under penalty of fines reaching €5M or 3% of annual turnover.
Who Does MiCA Affect?
- Asset-referenced token (ART) issuers — stablecoins backed by a basket of assets
- E-money token (EMT) issuers — stablecoins pegged to a single fiat currency
- Crypto-asset service providers (CASPs) — exchanges, custodial wallets, advisors, brokers
Key CASP Obligations
- Authorization from the national supervisory authority
- AML/CFT procedures compliant with Directive (EU) 2024/1624
- Minimum capital: €50,000–€150,000 depending on service category
- White paper for each offered crypto-asset
- Complaint handling and conflict of interest management
Transitional Period
Entities that operated legally before MiCA took effect may benefit from a transitional period until July 1, 2026. During this time, they can continue under existing national regulations, provided they submit a MiCA authorization application before the deadline.
Practical Checklist
- Legal status audit — determine CASP, ART, or EMT classification
- Gap analysis — current procedures vs. MiCA requirements
- Documentation — white paper, compliance policies, AML procedures
- Authorization application — submit in time for grandfathering
- Team training — management must demonstrate adequate competence
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