Understanding the evolution and regulatory landscape of cryptocurrency is significantly important in today’s digitized financial markets. As the EU markets move towards embracing crypto-assets, the Markets in Crypto-Assets (MiCA) regulation stands as a cornerstone for streamlined processes and growth. This article looks into what is MiCA regulation, examining its relevance and impact on the EU markets.

What is MiCA regulation?

MiCA, or the Markets in Crypto-Assets, is a proposed regulatory framework for the crypto-asset market in the European Union. 

It was composed as a response to the increased interest and adoption of cryptocurrencies across Europe. Its goal is to ensure a harmonized approach towards regulating the crypto space, bringing clarity and offering protection to investors.

Specifically, MiCA provides a framework that establishes uniform requirements for the issuance of crypto-assets, their public offering, and permission for trading. Consistent rules are set regarding granting operating VASP licenses, supervision, activities, organization, and management of crypto-asset service providers and token issuers. 

The regulation also addresses the protection of crypto-asset owners and clients of crypto-asset service providers (CASPs). It also takes measures to prevent insider trading, illegal disclosure of inside information, and market manipulation related to crypto-assets.

What is MiCA

Fundamental Objectives of MiCA

  1. Strengthening the Internal Market: Ensuring a seamless internal market within the EU by establishing uniform rules across member states.
  2. Investor Protection: Reducing the potential risks associated with crypto-assets by implementing measures that ensure investor protection.
  3. Financial Stability: Mitigating the risks to financial stability that may arise from the unregulated proliferation of crypto-assets.

MiCA Regulation timeframe

The European Commission came forward with the MiCA Proposal as a part of the larger digital finance package in September 2020. 

In June 2022 provisional agreement was reached. In the same year autumn, the Committee of Permanent Representatives (COREPER) endorsed the agreement and put forward its proposal to the EU Parliament.

The final text of the MiCA Regulation was published in the Official Journal of the European Union. After that, 20 days following its publication, the MiCA Regulation 2023/1114 entered into force on 29 June 2023. 

When will MiCA be implemented?

The important dates regarding MiCA implementation are 30 June 2024 and 30 December 2024. Regulations concerning ARTs and EMTs are going to be implemented 12 months after the regulation’s enforcement, that is 30 June 2024. The rest of the regulations will be in effect 18 months post the initial enforcement, marking the date as 30 December 2024.

Existing CASPs, which have been lawfully offering their services, can persist until either 18 months after MiCA provisions become applicable or until they secure authorization, as per MiCA’s Article 143, paragraph 3.

To prepare for the implementation of the MiCA regulation, firms will need to analyze the legislation’s impacts on their business. Efforts need to focus on updating policies and procedures, staff training, and technology implementation. 

Feel free to contact Vaspex Legal regarding crypto licenses. Our experts will guide you through the complex field of legislation, and we will ensure your company corresponds to MiCA requirements.

Who does MiCA apply to?

The MiCA establishes regulatory requirements for primarily the following activities:

  • Issuing crypto-assets by listing them on a trading platform or in any other way 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.

Generally, the majority of business operations linked to crypto-assets in the EU are governed by the MiCA regulation. Non-EU crypto-asset firms carrying out activities for EU customers must also comply with the requirements.

Which crypto-assets fall under the MiCA regulation?

The crypto asset is defined in MiCA as follows:

 “A digital representation of value or rights which may be transferred and stored electronically, using distributed ledger technology or similar technology”. 

MiCA differentiates between the following three types of crypto-assets (tokens):

  1. Asset-referenced Token (ART) – A type of crypto-asset that is not an electronic money token and that aims to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies
  2. E-Money Token (EMT) – A type of crypto-asset that purports to maintain a stable value by referencing the value of one official currency
  3. Crypto-assets not covered by existing EU law – Other crypto assets including utility tokens. 

MiCA regulation does not apply to certain crypto-assets, that are unique and not interchangeable with other crypto-assets, such as NFTs, and to other financial instruments regulated by the securities-centric directive MiFID, like security tokens.

What is MiCA regulation

Pillars of MiCA Regulation

Why MiCA Regulation is needed?

MiCA is not just another regulatory directive. It’s a transformative piece of legislation that:

  • Standardizes Regulation: Offers a unified framework, ensuring consistency across member states.
  • Promotes Innovation: It introduces a clear set of rules that encourage innovation within the regulated boundaries while promoting trust and growth.
  • Bolsters Investor Confidence: With transparent processes and stringent measures, investors can navigate the crypto space with enhanced confidence.


When talking about what is MiCA regulation, we can conclude that it is a legal framework for the crypto-asset market in the European Union. It imposes new obligations, compliance requirements, and increased examination of service providers. 

But in addition to new requirements, MiCA regulation is poised to play a significant role in the EU being the frontrunner in adopting crypto technologies. It will not only streamline operations but will also foster a safe and growth-centric environment for both investors and service providers. 

With standardized practices, increased transparency, and heightened security measures, the future of crypto in the EU looks promising.

Read also how will MiCA regulation impact Estonian CASPs.