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MiCA Compliance for Crypto-Asset Service Providers: Authorisation, Whitepapers and Market…
MiCA (Regulation EU 2023/1114) is the first comprehensive EU framework for crypto-assets. Title II covers crypto-asset issuance and whitepaper…
· 12 min read · Crypto & Sovereign Finance
The Markets in Crypto-Assets Regulation (EU 2023/1114) became fully applicable in December 2024. What a crypto exchange, ART issuer or EMT issuer is now actually obliged to do.
Scope and Effective Dates
The Markets in Crypto-Assets Regulation (Regulation EU 2023/1114) is the EU's first comprehensive crypto framework. Adopted in June 2023, MiCA's stablecoin provisions (Titles III and IV, covering ART and EMT issuers) became applicable on 30 June 2024; the rest of the Regulation - including the CASP authorisation regime under Title V and the market-abuse regime under Title VI - became fully applicable on 30 December 2024. Member States may grant transitional periods of up to 18 months under Article 143 for existing crypto businesses.
The Three Crypto-Asset Categories
Title II: Crypto-Assets Other Than ARTs or EMTs
For straightforward crypto-assets (a category broad enough to include most utility tokens and many alt-coins), Title II requires the offeror or the person seeking admission to trading on a trading platform to publish a crypto-asset whitepaper that has been notified to the competent authority, and to act honestly, fairly and professionally. The whitepaper must include the information set out in Annex I and is governed by Articles 5 to 15.
Title III: Asset-Referenced Tokens (ARTs)
ARTs are crypto-assets that purport to maintain a stable value by referencing another value, right, or combination thereof - including one or several official currencies. Title III imposes a full authorisation regime under Article 16: only credit institutions or specifically-authorised issuers established in the Union may offer ARTs to the public. Issuers are subject to capital requirements, reserve composition rules, redemption rights, and ongoing reporting. Articles 39-43 introduce the regime for significant ARTs, with additional supervision by the EBA. The thresholds for significance - number of holders, value, transactions - are set out in Article 43 and detailed in EBA Regulatory Technical Standards.
Title IV: E-Money Tokens (EMTs)
EMTs are crypto-assets that purport to maintain a stable value by referencing the value of one official currency. Only credit institutions or authorised electronic money institutions may issue EMTs. Article 49 grants holders a permanent claim on the issuer redeemable at par value. Title IV is closely modelled on the second E-Money Directive (Directive 2009/110/EC), and an EMT issuer faces both EMD2 and MiCA obligations.
Title V: The CASP Regime
Title V regulates crypto-asset service providers - the exchanges, custodians, brokers, advisors, and portfolio managers of the crypto economy. Article 59 makes CASP services subject to prior authorisation in a Member State, with that authorisation passportable across the Union. Article 60 carves out an exemption for entities already authorised under MiFID II, the Capital Requirements Directive, the E-Money Directive, the Payment Services Directive, the UCITS Directive, the AIFMD or the CSDR - they can provide crypto-asset services subject to notification.
The Seven CASP Service Categories
Article 3(1)(16) defines crypto-asset service to mean: custody and administration of crypto-assets on behalf of clients; operation of a trading platform for crypto-assets; exchange of crypto-assets for funds; exchange of crypto-assets for other crypto-assets; execution of orders for crypto-assets on behalf of clients; placing of crypto-assets; reception and transmission of orders for crypto-assets on behalf of clients; providing advice on crypto-assets; providing portfolio management on crypto-assets; and providing transfer services for crypto-assets on behalf of clients.
CASP Operating Conditions
Articles 66 to 79 set the operating conditions: act honestly, fairly and professionally (Article 66); prudential requirements (Article 67); governance arrangements (Article 68); safekeeping of clients' crypto-assets and funds (Article 70); complaint-handling (Article 71); conflicts of interest (Article 72); outsourcing (Article 73); orderly wind-down (Article 47, by cross-reference). Articles 80 to 83 set additional requirements for specific services such as custody, trading platforms, and exchange services.
Title VI: Market Abuse in Crypto
MiCA Articles 86 to 92 introduce a market-abuse regime for crypto-assets admitted to trading on a trading platform, modelled on the Market Abuse Regulation (MAR). It prohibits insider dealing (Article 89), the unlawful disclosure of inside information (Article 90), and market manipulation (Article 91). Each CASP operating a trading platform must establish effective arrangements and procedures aimed at preventing and detecting market abuse, and must report suspicious orders and transactions to the competent authority.
The MiCA Travel Rule
Although the Funds Transfer Regulation (Regulation EU 2023/1113), not MiCA itself, contains the EU travel rule for crypto-asset transfers, MiCA-authorised CASPs are caught by it. The Regulation requires originator and beneficiary information to accompany every transfer of crypto-assets, with no de minimis threshold for transfers between obliged CASPs.
How MiCA Interacts with DORA, AMLD and GDPR
MiCA-authorised CASPs are explicitly within the scope of DORA (Regulation EU 2022/2554) under Article 2(1)(g): they must maintain an ICT risk management framework, classify and report major ICT-related incidents, and manage ICT third-party risk in accordance with Articles 5 to 44 of DORA. CASPs are also obliged entities under the EU AML/CFT framework - AMLD5 (Directive 2018/843) and the new AML Regulation/Authority package. GDPR applies in full to personal data processed in connection with crypto-asset services.
How Bidda Maps MiCA
Bidda represents every operative MiCA Title - together with its key Articles, the EBA Regulatory Technical Standards (covering ART significance thresholds, EMT redemption, and prudential calculation) and the ESMA Regulatory Technical Standards (covering CASP authorisation, market abuse, and order-execution) - as discrete compliance nodes. Each carries primary-citation references to the Official Journal text and crosswalks to FATF Recommendation 15 (virtual assets) and Recommendation 16 (travel rule), the Funds Transfer Regulation, DORA, and AMLD5.
Frequently Asked Questions
When did MiCA become fully applicable?MiCA (Regulation EU 2023/1114) was adopted in June 2023. Titles III and IV (asset-referenced tokens and e-money tokens) became applicable on 30 June 2024. The rest of the Regulation - including the CASP authorisation regime under Title V and the market-abuse regime under Title VI - became fully applicable on 30 December 2024. Member States may grant transitional periods of up to 18 months under Article 143.
What is a CASP under MiCA?A crypto-asset service provider (CASP) is any legal person or undertaking whose occupation or business is the provision of one or more crypto-asset services to third parties on a professional basis. The ten service categories are defined in Article 3(1)(16) and include custody, trading platform operation, exchange, order execution, placing, reception and transmission of orders, advice, portfolio management and transfer services. Article 59 makes CASPs subject to prior authorisation in a Member State.
What is the difference between an ART and an EMT under MiCA?An asset-referenced token (ART) is a crypto-asset that purports to maintain a stable value by referencing another value, right, or combination thereof - including a basket of official currencies, commodities, or other crypto-assets. An e-money token (EMT) references the value of only one official currency. ARTs are regulated under Title III; EMTs under Title IV. Only credit institutions or specifically-authorised issuers may issue an ART; only credit institutions or authorised e-money institutions may issue an EMT.
What does the EU crypto travel rule require?The EU travel rule sits in Regulation EU 2023/1113 (the recast Funds Transfer Regulation), not in MiCA itself, but applies to every MiCA-authorised CASP. It requires originator and beneficiary information to accompany every transfer of crypto-assets, with no de minimis threshold for transfers between obliged CASPs.
What is a significant ART or significant EMT?Articles 43 (for ARTs) and 56 (for EMTs) set out the criteria for designating a token as significant - number of holders, market capitalisation, transaction count, links with the financial system, and cross-border activity. The detailed thresholds are specified in EBA Regulatory Technical Standards. Significant tokens are subject to direct supervision by the EBA in addition to home-state supervision and face additional capital, governance, and liquidity requirements.
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