Regulation (EU) 2023/1114 of 31 May 2023 on markets in crypto-assets (MiCA) establishes a regulatory framework that harmonises the regulation of crypto-asset markets across the European Union (EU). By regulating both the offering of crypto-assets and the provision of crypto-asset services in the EU, MiCA provides a comprehensive set of rules for market participants operating in the EU.
MiCA was adopted on 31 May 2023 and fully applies since 30 December 2024. Its key provisions are summarised below.
1. Taxonomy of crypto-assets
MiCA distinguishes three types of crypto-assets:
- e-money tokens (EMTs), that aims to stabilise their value by referencing only one official currency.
- asset-referenced tokens (ARTs), which aims to stabilise their value by referencing another value or right, or combination thereof.
- a catch-all category of crypto-assets, designing all those other than ARTs and EMTs, including utility tokens.
MiCA also excludes certain crypto-assets from its scope. This is notably the case for financial instruments and crypto-assets that are unique and not fungible with other crypto-assets.
2. Public offer
MiCA lays down rules for offerors to the public and people seeking admission to trading of crypto-assets.
2.1 Public offer of crypto-assets
Crypto-asset white paper
Offerors or people seeking admission to trading of crypto-assets in the EU should publish a crypto-asset white paper. The latter should notably contain general information on the project and the rights and obligations of token holders.
Marketing communications
Any marketing communication relating to a public offer of crypto-assets should comply with MiCA’s requirements, in particular the requirement to be fair, clear and not misleading.
2.2 Offer of ARTs and EMTs
Additional requirements apply to public offerings or requests for admission of ARTs to trading. Both require prior authorisation from the competent authority and approval of the white paper. Only EU credit institutions and EU-based entities authorised under MiCA may publicly offer or seek admission to trading of ARTs in the EU. Specific requirements also apply when issuing EMTs. In particular, only authorised electronic money institutions or authorised credit institution may issue EMTs.
2.3 Regulatory requirements
Offerors and people seeking admission to trading of crypto-assets, ARTs and EMTs are required to comply with specific regulatory requirements, including to manage and disclose their conflicts of interest. ARTs and EMTs will also trigger more stringent requirements if they are deemed as “significant », including higher capital requirements.
3. Crypto-asset services
MiCA provides for a list of crypto-assets services (including the custody of crypto-assets, operating a trading platform for crypto-assets or exchange services on crypto-assets), the provision of which is regulated and subject to prior authorisation.
3.1 CASP authorisation
The provision of crypto-asset services requires in principle a prior authorization as crypto-asset service provider (CASP) and to comply with the prudential requirements set under MiCA. Once authorised, CASPs are allowed to provide crypto-asset services across the EU.
3.2 Regulated financial institutions
Some regulated financial institutions may provide crypto-asset services without a CASP authorization, but subject to notification requirements. For example, credit institutions may offer all crypto-asset services, but investment firms may only provide those considered as equivalent to the investment services for which they are authorised.
4. Supervision
Member States must designate the competent authorities in charge of ensuring compliance with MiCA. At present, Belgium has not yet confirmed the identity of such supervisor.
5. Grandfathering regime
Finally, MiCA provides for a grandfathering regime, allowing entities providing crypto-asset services in accordance with national law before 30 December 2024 to continue to do so until 1 July 2026 or until they are granted or refused an authorisation as a CASP.
Member States may however decide not to apply the transitional regime or to reduce its duration. Belgium has also not yet communicated its position on this grandfathering regime. Since no virtual asset service provider (VASP) is currently registered with the FSMA, this transitional regime will not be of use in Belgium.