MiCA explained: what the EU's crypto rules mean for users

MiCA, the Markets in Crypto-Assets regulation, is the European Union's first single rulebook for crypto. Before it, each member state had its own registration regime, so a firm licensed in one country had no automatic right to serve customers in another.

What it covers

MiCA has two main parts. The first applies to stablecoins, which it splits into e-money tokens (pegged to one official currency, such as the euro) and asset-referenced tokens (backed by a basket of assets). Issuers need authorisation, must hold reserves and must let holders redeem. These rules took effect in June 2024.

The second part covers crypto-asset service providers, or CASPs: exchanges, brokers, custodians and similar businesses. They need a licence from a national regulator, and that licence can then be "passported" to serve the whole EU. This part applied from 30 December 2024, with transition periods that member states could set for firms already operating.

What changes for users

• Licensed providers must publish clear information about the assets they offer and the risks.
• Customer assets held by a provider must be kept separate from the firm's own.
• Token issuers must publish a white paper with prescribed content, and are liable for misleading statements in it.

What it leaves out

MiCA does not regulate fully decentralised services with no identifiable operator, most NFTs, or crypto lending and staking in detail. It also does not make any asset safe: authorisation is about how a firm operates, not a judgement on prices.

Key takeaways

• One licence, valid across the EU, replaces a patchwork of national registrations.
• Stablecoin issuers face reserve and redemption rules.
• Check a provider's authorisation on its national regulator's register before you sign up.