MiCA explained: the EU's crypto-asset rulebook

What is MiCA and why did the EU create it?

Before MiCA, a crypto exchange in the EU faced a different set of national rules in each country, and many crypto-assets fell outside financial law altogether. The Markets in Crypto-Assets Regulation, formally Regulation (EU) 2023/1114, replaced that patchwork. According to ESMA, the EU securities markets authority, it sets uniform market rules for crypto-assets that are not already covered by existing financial services legislation.

As an EU regulation, MiCA is directly applicable in every member state; countries do not need to rewrite it into national law. National authorities supervise firms day to day; ESMA writes technical standards and keeps a central register, and the European Banking Authority works alongside it on stablecoins.

MiCA does not try to cover everything. The legal text leaves out crypto-assets that already count as financial instruments (a tokenized share stays under securities law), deposits, and crypto-assets that are unique and not fungible, such as digital art and collectibles. Digital currencies issued by central banks are also outside its scope — see what is a CBDC.

Which crypto-assets does MiCA cover?

MiCA sorts tokens into three categories, each under its own part ("Title") of the regulation.

The two stablecoin categories carry the most detailed rules, because their holders expect them to behave like money. For how stablecoins hold their peg, read what is a stablecoin.

What must token issuers do under MiCA?

For a token outside the stablecoin categories, the main duty is a crypto-asset white paper: a disclosure document describing the project, the token, the rights attached and the risks. The paper must carry a statement that it has not been approved by a competent authority. ESMA adds that the offeror or issuer alone is responsible for its content. A filed white paper is not a seal of approval.

Retail buyers also get a cooling-off right. When you buy such a crypto-asset directly from the offeror, MiCA gives retail holders 14 calendar days to withdraw, with exceptions once the token is already trading on a platform.

Stablecoin issuers face more. E-money tokens may be offered only by banks or licensed e-money institutions, and neither EMT nor ART issuers may pay holders interest. That rule shapes what you see in the market: a platform advertising a "yield" on a euro stablecoin is paying it from somewhere other than the issuer — usually by putting your coins to work.

How do crypto exchanges and brokers get authorised?

MiCA calls exchanges, brokers, custodians and similar businesses crypto-asset service providers (CASPs). They must be legal persons authorised by a national authority. The authorisation works as a passport: once granted in one member state it is valid across the Union, so a firm licensed in one country can serve customers in the others.

Firms already operating before 30 December 2024 could, where their country allowed it, keep going during a transitional ("grandfathering") period while their application was processed. ESMA states that those periods ended on 1 July 2026 at the latest. As of October 2026, a firm serving EU customers under MiCA should therefore hold an authorisation rather than rely on the old national regime.

CASPs are also bound by EU anti-money-laundering rules, including the crypto version of the travel rule, which has applied since 30 December 2024 and covers crypto transfers of any amount. That is why your exchange asks who you are sending funds to — see KYC and AML explained.

How can you check whether a firm is MiCA-authorised?

ESMA publishes an interim MiCA register as downloadable spreadsheet files, updated weekly. It contains five lists: white papers for other crypto-assets, ART issuers, EMT issuers, authorised CASPs, and non-compliant entities.

1. Find the legal entity. Look in the platform's terms of service for the company name and the country that authorised it — not just the brand name.

2. Search the CASP list. Open ESMA's interim register and search the authorised CASP file for that legal name.

3. Check the national register. Confirm the entry on the website of the national authority named in the register.

4. Check the non-compliant list. ESMA's register also lists entities flagged for providing services without authorisation.

Our general guide, how to check if a financial platform is registered, covers US and UK registers as well.

What mistakes do people make when reading MiCA?

• Treating a white paper as approval. MiCA requires the paper to state that no authority has approved it.
• Assuming MiCA protects crypto prices. It regulates disclosure, conduct and reserves. It does not stop a token from losing most of its value.
• Confusing a brand with a licence. A global exchange may hold a MiCA authorisation through one EU entity while serving other customers through companies outside the EU.
• Expecting interest from a stablecoin issuer. EMT and ART issuers may not pay it; any advertised return comes from someone else taking risk with your coins.
• Assuming NFTs and tokenized shares fall under MiCA. Unique non-fungible tokens are excluded, and tokenized financial instruments stay under securities law.