EU: MiCA Regulation Brings Major Changes to Crypto Businesses
- Andrey Povolnov
- Oct 26
- 1 min read
Summary:
The EU’s Markets in Crypto-Assets Regulation (MiCA) is now in force, creating the world's first unified regulatory framework for crypto assets and service providers. MiCA aims to protect consumers, increase transparency, and bring stability to the digital asset market.
Date: March 2025
Category/Tags: EU, Regulation, MiCA, Compliance
MiCA introduces mandatory authorization and licensing for all crypto-asset service providers (CASPs) in the EU. Companies must now comply with strict requirements on capital, risk management, governance, and cybersecurity. Stablecoin issuers face even tougher standards, including reserve requirements and redemption rules.
For consumers, MiCA increases protection by requiring transparency in project disclosures, marketing, and asset custody. Crypto companies must publish clear white papers and are forbidden from insider trading or price manipulation—rules that bring the sector closer to traditional finance standards.
Smaller firms may struggle with the increased compliance burden, leading to industry consolidation, but investor confidence is expected to rise. MiCA also enables “passporting” — regulated firms can operate across all 27 EU member states with a single license.
Starting in 2025, the “Travel Rule” is integrated into MiCA: CASPs must collect sender and receiver information for every crypto transfer, tightening AML compliance and making transactions more traceable for authorities.
Official Sources:
Executive Consulting Hub Comment:
MiCA is reshaping the European crypto market. If you operate or plan to offer services in the EU, review your compliance, documentation, and custody solutions now. We help teams navigate MiCA and design resilient workflows.
Comments