MiCA, the Markets in Crypto-Assets Regulation (Regulation (EU) 2023/1114), is the European Union law that governs the public offering of crypto-assets, their admission to trading, the issuance of stablecoins and the provision of crypto-asset services. As a regulation rather than a directive, it applies directly in every member state without national transposition, replacing a patchwork of national registration regimes. Firms authorized under MiCA in one member state can provide services across the bloc through passporting.
MiCA was adopted on 31 May 2023, published in the Official Journal in June 2023 and entered into force on 29 June 2023. Its rules on stablecoins applied from 30 June 2024, and the remainder, including the licensing regime for service providers, from 30 December 2024. It is also being incorporated into the law of the wider European Economic Area.
Scope of MiCA
MiCA covers crypto-assets that are not already regulated by existing EU financial services law. It distinguishes three categories:
- E-money tokens (EMTs). Tokens that aim to maintain a stable value by referencing one official currency, such as a euro or dollar stablecoin. They are described under e-money tokens.
- Asset-referenced tokens (ARTs). Tokens that reference another value or right, or a combination, such as a basket of currencies or commodities. A related category in other regimes is the value-referenced crypto-asset.
- Other crypto-assets. Utility tokens and other assets such as bitcoin, where MiCA mainly regulates the white paper and the service providers rather than the asset itself.
Excluded are crypto-assets that qualify as financial instruments under MiFID II, which remain under securities law; deposits, including what are generally treated as tokenized deposits; central bank digital currencies; and crypto-assets that are unique and not fungible, such as many NFTs. Services provided in a fully decentralized manner without any intermediary are also outside its scope, although the boundary is subject to interpretation.
Stablecoin rules
Only credit institutions and electronic money institutions may issue EMTs, which are treated as electronic money. Holders have a right to redeem at par at any time, and issuers may not pay interest. A substantial part of reserve funds must be held as deposits with credit institutions, with the rest in high-quality liquid assets. ART issuers need a specific authorization and must hold a segregated reserve of assets. Tokens that become significant because of their size or use are supervised by the European Banking Authority and face stricter capital and liquidity rules. MiCA also allows restrictions on ARTs and on EMTs denominated in non-EU currencies when they are widely used as a means of exchange, to protect monetary sovereignty.
Because Tether (USDT) did not obtain authorization as an EMT issuer, major exchanges serving EU customers restricted or delisted it for EEA users in late 2024 and early 2025, while euro and dollar stablecoins from authorized issuers gained share.
Crypto-asset service providers
A crypto-asset service provider (CASP) must be authorized by a national competent authority to provide services such as custody and administration on behalf of clients, operation of a trading platform, exchange of crypto-assets for funds or other crypto-assets, execution and transmission of orders, placing, advice, portfolio management and transfer services. CASPs must meet minimum capital requirements that vary by service, governance and fit-and-proper tests, conduct-of-business and complaint-handling rules, and requirements to segregate client assets. The differences between the MiCA term and the FATF term are explained under CASP vs VASP.
Authorized CASPs can operate in other member states through passporting, by notification, without a further license. Firms already operating under national regimes could continue during a transitional period, which member states could set at up to 18 months, ending no later than 1 July 2026.
White papers and market abuse
Offerors of crypto-assets, other than EMTs and ARTs, must publish a crypto-asset white paper with prescribed information on the project, the rights attached and the risks, and notify it to their regulator; prior approval is not required. MiCA also introduces rules against insider dealing, unlawful disclosure of inside information and market manipulation for crypto-assets admitted to trading.
Relationship with other EU rules
MiCA was adopted together with a recast Transfer of Funds Regulation (EU) 2023/1113, which applies the travel rule to crypto transfers by CASPs, including transfers involving unhosted wallets. CASPs are obliged entities under EU anti-money laundering law. MiCA sits alongside PSD2, which governs payment services, and payment flows involving EMTs may raise questions under both regimes. The European Securities and Markets Authority (ESMA) maintains the central register of authorized CASPs and issues guidance, while the European Banking Authority leads on stablecoins.
Comparison with other regimes
MiCA is often contrasted with the United States, where crypto activity has been regulated through a mix of state licenses, such as the New York BitLicense, federal money transmission rules and securities enforcement. Its single rulebook and passport have made the EU an attractive base for firms seeking regulatory certainty, though critics argue the compliance costs favor large incumbents and that the stablecoin restrictions limit competition. For a wider survey, see cryptocurrency regulation.