What is MiCA regulation?
MiCA is the EU Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114. It sets rules for issuers of crypto-assets and stablecoins and requires crypto-asset service providers, such as exchanges and custodians, to hold an authorization. It applies in full since . In German-speaking supervision the usual short form is MiCAR.
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MiCA in brief
| Term | Markets in Crypto-Assets Regulation. German: Verordnung über Märkte für Kryptowerte. |
|---|---|
| Legal source | Regulation (EU) 2023/1114 of , proposed by the European Commission. |
| Applies | Stablecoin titles III and IV since ; all other rules since (Article 149). |
| Services | Ten crypto-asset services need an authorization (Article 3(1)(16)). |
| Supervisors | BaFin in Germany (KMAG § 3), FMA in Austria (MiCA-VVG § 1). |
| Transition | At most until (Article 143(3)); Germany and Austria chose 12 months (ESMA list). |
What does MiCA regulate?
MiCA regulates crypto-assets in Europe that no other EU financial law covers. It does not apply to crypto-assets that qualify as financial instruments, deposits or funds (Article 2(4)). A crypto-asset is "a digital representation of a value or of a right" that is transferred and stored with distributed ledger technology (Article 3(1)(5)).
An EU MiCA regulation summary by title:
| Title | Content |
|---|---|
| II | Other crypto-assets: white paper and marketing rules |
| III | Asset-referenced tokens |
| IV | E-money tokens |
| V | Authorization and operating conditions for crypto-asset service providers |
| VI | Market abuse involving crypto-assets |
How does MiCA treat banks and asset managers?
MiCA lets banks and asset managers offer crypto services with their existing license. Article 59(1)(b) names credit institutions, central securities depositories, investment firms, market operators, e-money institutions, UCITS management companies and managers of alternative investment funds. They provide crypto-asset services under Article 60, after a notification to their home supervisor. A credit institution files it at least 40 working days before the first service.
Every other firm needs a MiCA license: the authorization as crypto-asset service provider under Articles 59 and 63. A crypto-asset service provider is a firm whose business is one or more of ten services, from custody and trading platforms to advice, portfolio management and transfer services (Article 3(1)(16)).
What does MiCA say about stablecoins?
MiCA sorts stablecoins into two types. An e-money token references "the value of one official currency", such as the euro (Article 3(1)(7)). An asset-referenced token references another value or right, or a basket, including several currencies (Article 3(1)(6)).
Only a credit institution or an electronic money institution may offer an e-money token to the public in the EU (Article 48). An issuer of asset-referenced tokens needs its own authorization under Article 21 unless it is a credit institution (Article 16). These EU MiCA rules for stablecoins apply since , six months before the rest of the regulation.
What is the MiCA transitional period?
The transitional period let crypto firms that worked under national law before continue until , or until their authorization was granted or refused (Article 143(3)). Each Member State could shorten the period or not apply it, if its national rules were less strict than MiCA, and had to notify its choice by .
According to the ESMA list of grandfathering periods (version of ), Germany and Austria both chose 12 months. Other states chose between 6 and 18 months. On the FMA reported that providers without authorization must stop taking on new clients and wind down their business by the end of the period.
MiCA regulations in Germany, Austria and Switzerland
In Germany the Kryptomärkteaufsichtsgesetz (KMAG) supplements MiCA and makes BaFin the competent authority (§ 3). Section 50 KMAG holds the German transitional rule under Article 143. So MiCA works in Germany through two texts: the EU regulation sets the duties, the KMAG sets the powers of BaFin. In Austria the MiCA-Verordnung-Vollzugsgesetz (MiCA-VVG, BGBl. I Nr. 111/2024) names the FMA as competent authority (§ 1).
Switzerland is outside the EU, so MiCA does not apply there. FINMA lists its own practice on crypto services, including guidelines on licensing as a DLT trading facility and Guidance 06/2024 on stablecoins. This page gives no legal advice.
Sources
- European Union: Regulation (EU) 2023/1114 on markets in crypto-assets,
- European Securities and Markets Authority: List of grandfathering periods decided by Member States under Article 143 of MiCA, version of
- Federal Republic of Germany: Kryptomärkteaufsichtsgesetz (KMAG), §§ 3 and 50, version read
- Republic of Austria: MiCA-Verordnung-Vollzugsgesetz (MiCA-VVG), version of
- FMA: End of the MiCAR transition period,
- FINMA: At a glance: list of crypto services, read