Markets in Crypto-Assets Regulation (MiCA)
The Markets in Crypto-Assets Regulation (MiCA) is the first comprehensive European regulatory framework for crypto-assets. Fully applicable since 30 December 2024, it imposes licensing, transparency, and investor protection obligations on crypto-asset issuers and crypto-asset service providers (CASPs).
MiCA fills a major regulatory gap by creating a harmonised framework for crypto-assets that were not covered by existing financial legislation. The regulation distinguishes three categories: asset-referenced tokens (ARTs), e-money tokens (EMTs), and other crypto-assets. Each category is subject to specific requirements regarding white papers, reserves, and governance.
For crypto-asset service providers (CASPs), MiCA requires authorisation granted by the national competent authority, with a European passport. Obligations include prudential requirements, segregation of client assets, strict governance rules, and market abuse prevention measures. The regulation also imposes enhanced KYC obligations, aligned with anti-money laundering directive provisions.
The impact on identity verification is substantial: CASPs must implement robust KYC procedures for all their clients, including for crypto-asset transfers (travel rule). Issuers of significant ARTs and EMTs are subject to direct supervision by the European Banking Authority (EBA).
Regulations
Real-world examples
- 1.A crypto exchange platform based in France obtains its CASP licence from the AMF, including the obligation to verify the identity of all users through a KYC process compliant with GDPR and AML regulations.
- 2.An issuer of a euro-backed stablecoin must maintain a reserve of assets equal to 100% of tokens in circulation and publish a white paper detailing risks, holder rights, and redemption mechanisms.
- 3.A crypto custody service provider implements the travel rule: for each transfer exceeding EUR 1,000, it collects and transmits identification information for both the originator and the beneficiary.