MiCA stands for Markets in Crypto-Assets – the first comprehensive regulation by the European Union that sets uniform rules for trading and managing cryptocurrencies and digital assets. Officially, it’s called the Markets in Crypto-Assets Regulation (MiCAR), but it's commonly referred to as MiCA.
MiCA was adopted by the European Parliament in April 2023 and entered into force in June 2023. It is part of the EU’s broader Digital Finance Package, which aims to foster innovation in the financial sector while ensuring consumer protection and market stability.
Main Goals of MiCA
- Investor Protection: MiCA introduces clear rules on transparency and disclosures to help consumers better assess risks and opportunities in crypto markets.
- Financial Stability: By regulating crypto markets, MiCA aims to prevent systemic risks that could affect traditional finance.
- Market Integrity: The regulation addresses market manipulation, insider trading, and ensures fair competition in the crypto space.
- Anti-Money Laundering: MiCA complements the EU’s AML framework by requiring compliance from crypto service providers.
MiCA applies to all companies and individuals in the EU that issue crypto assets or provide services such as trading, custody, transfer, or portfolio advice involving digital assets.
Types of Crypto Assets under MiCA
- Asset-Referenced Tokens (ART): Tokens backed by a basket of assets like fiat currencies or commodities.
- E-Money Tokens (EMT): Tokens pegged to a single fiat currency, similar to stablecoins (e.g. EURC).
- Other Tokens: Includes utility tokens that grant access to specific products or services.
Key Requirements for Companies
- Authorization: Crypto service providers must be registered and authorized by their national financial regulator.
- Whitepaper: Anyone issuing a crypto asset must publish a whitepaper outlining the project, the issuer, risks, and technical details.
- Governance: Firms must maintain a clear organizational structure and sound risk management.
Implementation Timeline
- June 30, 2024: Rules for asset-referenced and e-money tokens come into effect.
- December 30, 2024: All crypto service providers must comply with the full MiCA framework.
Floin Insight
Floin is a fully regulated VASP under the Financial Market Authority of Liechtenstein. This means we are MiCA-ready and committed to operating with full transparency, strict compliance, and the highest standards of customer protection across the EU.
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