MiCA regulates crypto-assets and crypto-asset service providers (CASPs) in the EU by establishing harmonized rules for the issuance, offering, and trading of crypto-assets, as well as requirements for CASPs such as crypto exchanges and wallet providers. The regulation covers asset-referenced tokens, e-money tokens, and utility tokens, aiming to protect consumers and investors, ensure financial stability, and promote innovation through legal certainty and transparency in the crypto market.
What MiCA Regulates
What MiCA Regulates
- Issuance of Crypto-Assets:
This includes rules for the offering of crypto-assets, such as asset-referenced tokens (ARTs), e-money tokens (EMTs), and other crypto-assets like utility tokens. - Crypto-Asset Service Providers (CASPs):
Businesses that offer services related to crypto-assets are regulated, including:- Custody and administration of crypto-assets.
- Operation of crypto-asset trading platforms and exchanges.
- Providers of custodial wallets.
- Types of Crypto-Assets:
- Asset-Referenced Tokens (ARTs): Stablecoins backed by a basket of assets, commodities, or currencies.
- E-Money Tokens (EMTs): Stablecoins pegged to a single official fiat currency.
- Other Crypto-Assets: These include utility tokens, used to access digital services or platforms.
- Consumer and Investor Protection:
MiCA implements rules to safeguard users' interests and enhance confidence in the crypto market. - Financial Stability:
The regulation aims to mitigate risks to financial stability that could arise from the crypto market. - Market Integrity:
MiCA includes measures to prevent market abuse and ensure the integrity of crypto asset markets. - Legal Certainty and Innovation:
By creating a harmonized and clear regulatory framework, MiCA provides legal certainty for the market and fosters technological innovation.
- The regulation applies to entities operating within the European Union.
- It applies to issuers and service providers, even if they are established outside the EU, provided they offer crypto-assets or solicit services to clients within the EU.