MiCA Papers


What is MiCA?

MiCA, or the “Markets in Crypto-Assets”, is a proposed regulatory framework for the crypto-asset market in the . The regulation aims to provide a harmonized framework for the regulation of across the EU, while also addressing the specific risks associated with these types of assets.

The regulation covers a wide range of crypto-assets, including cryptocurrencies, utility tokens, and security tokens. It applies to both primary and secondary market activities, such as issuance, trading, and custody of crypto-assets. The regulation also covers certain service providers, such as crypto-asset trading platforms and custodial wallet providers.

One of the key objectives of MiCA is to ensure the protection of investors and consumers who use crypto-assets. To that end, the regulation includes a number of investor protection measures, such as disclosure and transparency requirements, as well as measures to prevent money laundering and terrorist financing.

The MiCA Regulation (MiCAR) was finalized in June 2023 and will start applying on 30 June 2024 and on 31 December 2024, for different kind of assets, (see Timeline).

What is MiCA Papers?

MiCA Papers is a private initiative aiming to provide guidance and support to the industry in implementing and adapting to the crypto-asset regulation in the EU. Read more.

MiCA Overview

The European Union has already established a harmonized market within the field of financial instruments for products, market participants and investors. Most crypto-assets do however fall outside of those legal frameworks. To extend the harmonized single-market to also cover cryptocurrencies and similar tokens, the MiCA regulatory framework includes rules for a sector that has been mostly unregulated within the EU.

Who does MiCA apply to?

The European crypto-asset legal framework MiCA establishes regulatory requirements for primarily the following activities:

  • Issuing by listing it on a trading platform or otherwise making a public offer.

  • Providing crypto-asset services, e.g., crypto wallets, trading venues, order execution, order transmission, investment advice and portfolio management.

  • Trading crypto-assets, in relation to the prohibition on insider dealing.

What kind of crypto-assets does MiCA apply to?

The MiCA Regulation has a broad area of application, as the rules define crypto-assets as “a digital representation of a value or a right which may be transferred and stored electronically, using distributed ledger technology or similar technology”. This includes typical cryptocurrencies such as Bitcoin and Ethereum, but also stablecoins and utility tokens.

MiCA does however not apply to crypto-assets that would qualify as transferable securities or financial instruments for the purposes of MiFID II.

In addition, there are certain specific products and services that are not in scope.

What kind of obligations does MiCA introduce?

The European crypto-asset legal framework MiCA establishes a range of regulatory requirements for persons engaging in the activities in scope of the rules.

  • Crypto-asset white paper. Issuers of crypto-assets must provide a “light prospectus”, called a white paper, with information on characteristics, functions and risks. It must be notified to, and in some cases approved, by the regulator before being published and modified.

  • Marketing. All marketing communications must be fair, clear and not misleading, be consistent with the white paper, include a specific disclaimer, and in some cases be notified to the regulator.

  • License and location requirements. Issuers of asset-referenced token and e-money tokens, and crypto-asset service providers, must seek and uphold a license for its operations, and must have an establishment within the EU.

  • Market Abuse. Insider dealing and market manipulation is prohibited and issuers etc. must comply with inside information disclosure rules.

  • Transparency. MiCA establishes a range of requirements for the purpose of informing the market and crypto-asset holders of the peculiars of the assets in circulation, the services provided etc.

  • Right of withdrawal. Retail holders should in some scenarios be guaranteed a right to withdraw their agreement to purchase crypto-assets without incurring fees or costs.

  • Sound operations. Crypto-asset offerors, service providers, and others, shall act honestly, fairly and professionally with the best interest of the holders, which includes, as applicable, conflicts of interest management, complaints handling, maintaining systems and security access protocols to appropriate EU standards and other governance requirements.