Understanding the Impact of MiCA
The Markets in Crypto-Assets Regulation (MiCA) marks a significant shift in how cryptoasset businesses are regulated across the European Union. With MiCA now live, firms operating in or targeting the EU must reassess their licensing, governance, and compliance frameworks.
This insight outlines what MiCA means in practice and the immediate steps cryptoasset service providers should be taking to prepare for supervisory scrutiny and long-term compliance.
What MiCA Changes for Crypto Firms
MiCA introduces a harmonised regulatory framework for cryptoasset issuance and service provision across the EU. It aims to enhance consumer protection, market integrity, and financial stability while providing regulatory clarity for firms operating across multiple member states.
Under MiCA, cryptoasset service providers (CASPs) are subject to authorisation requirements, governance standards, capital thresholds, and detailed conduct obligations. Firms must demonstrate robust risk management, operational resilience, and effective AML/CTF controls aligned with EU expectations.
Firms already operating under national regimes must assess transition timelines, licensing strategies, and potential restructuring requirements. New market entrants should carefully evaluate jurisdictional options, supervisory approach, and compliance readiness before pursuing authorisation.
Early engagement with regulators and proactive preparation will be critical in avoiding delays, remediation actions, or enforcement risk as MiCA implementation progresses.
