MiCA

MiCA, the Markets in Crypto-Assets Regulation, is the European Union's comprehensive legal framework for crypto assets and the companies that issue or service them. It creates a single set of rules across all EU member states, replacing the earlier patchwork of national regimes, and it applies to exchanges, brokers, custodians, and issuers of tokens, including stablecoins.

Under MiCA, a crypto business obtains authorization as a crypto-asset service provider (CASP) in one member state and can then "passport" that license to operate across the entire EU. The regulation also sets requirements for stablecoin issuers, such as holding adequate reserves and publishing a white paper, and it imposes conduct rules like disclosure of risks and handling of customer complaints. For example, an exchange licensed in one EU country can legally offer trading services to customers in the others without seeking separate national approvals, something that was not possible before MiCA.

A common misconception is that MiCA regulates all of crypto; fully decentralized protocols with no identifiable intermediary and NFTs that are genuinely unique largely fall outside its core scope. MiCA matters beyond Europe because it was one of the first large-jurisdiction frameworks of its kind, and other regulators have studied it as a reference point. For users, its most visible effects are clearer disclosures, regulated stablecoins, and the delisting of tokens that fail to meet its requirements.