What is MiCA? The EU crypto-asset framework

MiCA stands for Markets in Crypto-Assets. It names the European Union’s framework for offering crypto-assets to the public, admitting them to trading and providing related services. MiCAR refers to the same regulation.

The scope provisions do not put every financial product under one regime. Assets qualifying as financial instruments, for example, fall outside MiCA. The issuer, service provider and product need separate consideration.

Under the definitions, an EMT is an e-money token that references one official currency. An ART is not an EMT and references another value, right or combination, potentially including currencies. Both categories aim at stable value, but their reference assets differ.

Example

Imagine Alex, an EU resident, holds €1,000 of crypto-assets with a hypothetical Company A. Permission to provide custody does not mean the company must compensate Alex when a token’s market value falls to €800. A custody permission is different from a promise to preserve investment value. Nor does a foreign company using the same brand automatically share that permission.

What does authorisation establish?

Article 59 distinguishes the services covered by an authorisation. A “MiCA licensed” claim should identify the legal entity and relevant service. Our crypto-asset service provider definition explains the role, while the exchange regulatory-status guide shows how to match an entity to an official record.

Our analysis of crypto markets after MiCA examines how service access can affect trading routes and costs, using a hypothetical calculation and alternative liquidity scenarios.