Data Analytics
Master MiCA: Key EU Crypto Asset Regulations Explained
Jun 9, 2025
Discover MiCA: EU’s first crypto regulatory framework. Learn its impact and compliance steps.
What is MiCA?
The European Union’s Markets in Crypto-Assets Regulation (MiCA or MiCAR), officially Regulation (EU) 2023/1114, is the first cross-jurisdictional regulatory and supervisory framework for crypto asset service providers (CASPs) operating within the EU. In conjunction with Regulation (EU) 2023/1113 on information accompanying transfers of funds, the EU’s regulatory framework for crypto sets compliance standards for anti-money laundering and counter-terrorist financing (AML/CFT), introduces a comprehensive licensing regime to enhance market integrity, and requires consumer protection measures to protect crypto asset holders. These new rules provide a clear and uniform regulatory environment, ensuring the integrity and security of the EU’s crypto space.
Key Crypto Products Covered by MiCA
MiCA defines a crypto asset as a digital representation of value or rights that can be transferred and stored via distributed ledger technology. This regulation divides crypto assets into three categories, each with specific regulatory requirements based on their value stabilization mechanisms.
Electronic or e-money tokens (EMTs) are crypto assets that hold value by referencing a single official currency. To qualify as electronic money, EMTs must follow strict regulatory standards, including the ability to be exchanged at par value for fiat currency.
Asset-referenced tokens(ARTs) are crypto assets that maintain their value by referencing other values, rights, or combinations of these, including one or more official currencies. This group includes crypto assets backed by various assets, excluding e-money tokens.
The final category includes all other crypto assets that are neither e-money nor asset-referenced tokens, such as utility tokens. These are not considered financial instruments under regulatory frameworks like The Markets in Financial Instruments Directive (MiFID II).
It is important to note that MiCA regulations do not cover all non-fungible tokens (NFTs), only applying to NFTs that resemble assets governed by MiCA. The legislation does not apply to unique NFTs.