🇪🇺 EU · Key Regulation
MiCAR
The Markets in Crypto-Assets Regulation (MiCAR) is the European Union's first harmonised regulatory framework for crypto-assets. It establishes a single rulebook for crypto-asset issuers and crypto-asset service providers (CASPs) across all EU Member States, replacing the fragmented national approaches that existed under AMLD5.
In this briefing
- What it is
- What does MiCAR do?
- Key things to know
Before MiCAR, most crypto businesses were only subject to anti-money laundering registration requirements, with different rules and supervisory approaches across each Member State. MiCAR introduces a comprehensive licensing regime covering governance, conduct, prudential safeguards, consumer protection and ongoing supervision, while allowing authorised firms to passport services across the EU.
What does MiCAR do?
Single Rulebook
Creates a harmonised EU framework for crypto-assets, their issuers, offerors, persons seeking admission to trading and crypto-asset service providers.
Stablecoin Rules
Introduces dedicated requirements for issuers of e-money tokens and asset-referenced tokens. EMTs may be issued by credit institutions and electronic money institutions, while ART issuers must be appropriately authorised under MiCAR or operate as qualifying credit institutions.
Access Routes for CASPs
Provides two routes for firms seeking to offer crypto-asset services in the EU: a notification route under Article 60 for certain already-regulated financial entities, and a dedicated CASP authorisation route under Article 62 for other firms.
Passporting
Allows authorised CASPs to provide covered services across the EU through a notification-based passporting process, without obtaining a separate authorisation in each Member State.
Consumer Protection
Introduces customer safeguards across white papers, disclosures, marketing communications, withdrawal rights, complaints handling, custody, safekeeping and transparency.
Financial-Services-Style Requirements
Brings crypto-asset firms closer to traditional financial-services standards through prudential, governance, conduct, organisational and operational requirements. MiCAR also introduces a market-abuse regime for in-scope crypto-assets.
Key things to know
The transitional period has ended
Grandfathering arrangements for legacy providers have expired. Firms continuing to provide in-scope crypto-asset services in the EU must now hold the relevant authorisation or rely on an available regulatory route.
MiCAR does not operate in isolation
Most firms must also consider TFR, AMLR, DORA, DAC8, GDPR, MiFID II and payment-services legislation, as well as national legal and supervisory requirements.
Not every crypto-asset falls under MiCAR
Crypto-assets already regulated under other EU financial-services legislation, including instruments that qualify under MiFID II, generally fall outside MiCAR's scope.
EMT activity can trigger payment regulation
Certain services involving e-money tokens may also constitute payment services, requiring separate authorisation or a partnership with an authorised payment service provider.
The Level 1 text is only the starting point
MiCAR is supplemented by RTS, ITS, ESMA and EBA guidelines, Q&As, supervisory statements and national authority expectations. Firms need to monitor these materials to understand how the rules apply in practice.
The supervisory model may change
EU proposals on market integration and supervision may give ESMA a larger role in CASP oversight, potentially including elements of direct supervision. Firms should monitor the legislative process and assess how changes could affect authorisation and ongoing supervision.
For general information only. Not legal, regulatory or compliance advice.
Working With This Regulation?
Cryptliance helps firms understand what applies, what it means for the business and what to do next — across strategy, controls, product and market execution.