# MiCA

> Markets in Crypto-Assets Regulation

European regulation that entered into force in 2024–2025 to govern crypto-assets: CASP authorisation, oversight of stablecoins and investor protection.

_Category: reglementation_

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## Definition

**MiCA** (_Markets in Crypto-Assets Regulation_) is the European regulation governing crypto-assets, adopted in May 2023 and applied in phases over 2024–2025.

It is the world's first harmonised framework on the subject: it authorises market players (CASPs — _Crypto-Asset Service Providers_), regulates stablecoins and imposes investor protection comparable to that of traditional finance.

## MiCA vs PSD2: two worlds, sometimes intersecting

- **PSD2** — governs fiat-currency payments (EUR, USD) through bank accounts.
- **MiCA** — governs crypto-assets (BTC, ETH, stablecoins, NFTs in part).

The two intersect when a player offers both a fiat account (PSD2) and crypto (MiCA) — Revolut, Lydia, Coinbase Europe — which requires dual authorisation.

## The 3 categories of crypto-assets

- **ART** (_Asset-Referenced Tokens_) — backed by a basket of assets (currencies, commodities).
- **EMT** (_E-Money Tokens_) — backed by a single fiat currency (USDC, SG-Forge's EURCV).
- **Other crypto-assets** — everything else (BTC, ETH, altcoins), with lighter oversight through CASPs.

NFTs are partly excluded, except when issued as a standardised series.

## The CASP status

The CASP is MiCA's central status, covering 10 services (custody, order execution, exchange platform, advice, management, transfer). To operate, it needs authorisation from its home NCA (in France, the AMF, with an opinion from the ACPR), minimum capital (€50K to €150K), governance, an anti-money-laundering framework, IT resilience and segregation of client funds — then the European passport. In France, the former PSAN status (PACTE Act, 2019) is gradually being converted into the CASP.

## What MiCA does not do

- **Does not govern DeFi** (with no identifiable intermediary), excluded for now.
- **Does not govern unique NFTs** nor non-transferable utility tokens.
- **Does not replace** the regimes for security tokens (MiFID II) or AML/CFT (AML directives).
- **Does not create a central bank digital currency**: the digital euro is a separate ECB project.

## Application timeline

- **31 May 2023** — adoption of Regulation (EU) 2023/1114.
- **30 June 2024** — application of the ART and EMT (stablecoin) rules.
- **30 December 2024** — full application, including the CASP status.
- **Until 1 July 2026** — transitional period for players under a national regime (PSAN) while they convert to CASP.

## In the PSD2 ecosystem

MiCA is distinct from PSD2 but complementary for any fintech that touches both fiat payments and crypto. Ignoring it in 2025–2026 means cutting yourself off from a fast-growing market.

```mermaid
flowchart TB
    subgraph FIAT["Fiat world"]
        DSP2["PSD2 / PSD3 + PSR\nEUR / USD / GBP payments"]
    end

    subgraph CRYPTO["Crypto world (MiCA)"]
        ART["ART\n(asset-basket token)"]
        EMT["EMT\n(single-currency stablecoin)\ne.g. USDC, EURCV"]
        OTHER["Other crypto-assets\nBTC, ETH, altcoins"]
        CASP["CASP\nCentral authorisation"]
    end

    DSP2 -.->|"Possible combination\n(dual authorisation)"| CASP
    CASP -->|"Distributes"| ART
    CASP -->|"Distributes"| EMT
    CASP -->|"Distributes"| OTHER
```

## Concrete examples

- **Exchanges**: Coinbase Europe (authorised in Ireland), Bitpanda (Austria), Binance (in progress in several countries).
- **PSAN → CASP transition in France**: Coinhouse, Paymium, Aplo and Trakx are converting within the transition window through mid-2026.
- **Compliant stablecoins**: Circle (USDC) obtained its EMT authorisation in France in July 2024; Tether (USDT) is lagging, which prompted some platforms to delist its pairs.
- **New entrants**: Société Générale-Forge issues EURCV, a euro stablecoin restructured into an EMT in July 2024 — the first traditional bank within MiCA's scope.
- **MiCA + DORA**: every CASP must also comply with DORA, a heavy combined burden for young players.
- **Monitoring**: follow ESMA's RTS/ITS (ESMA co-leads MiCA with the EBA) for the rules on authorisation, passporting and reporting.

## Sources

- [Markets in Crypto-Assets Regulation (MiCA) — ESMA](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica) — ESMA
- [Regulation (EU) 2023/1114 (MiCA) — EUR-Lex](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R1114) — EUR-Lex, 2023-05-31
- [Société Générale-Forge elevates EUR CoinVertible to MiCA-compliant EMT](https://www.sgforge.com/stablecoin-elevation/) — SG-Forge, 2024-07-01

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Source: https://openfinanceguide.com/en/glossary/mica