KoinlyticsMiCA (Markets in Crypto-Assets) is the EU's first comprehensive crypto regulation. It came into full force in December 2024. Every business serving EU customers now has to comply.
Three main pillars
- Stablecoin issuance (Titles III & IV). In force since June 2024. Only authorized entities can issue stablecoins to EU users. Must hold 1:1 reserves in HQLA (high-quality liquid assets) with strict segregation. USDT was delisted from EU-facing exchanges under this rule.
- Crypto-Asset Service Providers (CASPs). In force since December 2024. Exchanges, custodians, and brokers must register, appoint EU-resident officers, implement AML/KYC, and follow investor protection rules.
- Market abuse and disclosure. Insider trading and market manipulation of crypto is now expressly illegal. Whitepapers required for token issuers, akin to a prospectus.
What MiCA does not cover
- DeFi (explicitly excluded so far). Truly decentralized protocols are outside scope, but the definition of "decentralized" is still being debated.
- NFTs, unless they are actually fungible in practice.
- Central bank digital currencies (separate framework).
- Purely peer-to-peer trades.
What changed for users
- USDT limited or delisted on EU-facing exchanges. USDC (Circle, MiCA-compliant) took market share.
- Airdrop KYC. Any project distributing tokens in the EU may now request KYC data.
- Consumer protection: cooling-off periods, complaint procedures, clear disclosures.
What changed for builders
- Any team selling a token to EU users must publish a MiCA whitepaper.
- Custodians must maintain client asset segregation and pass regular audits.
- Marketing communications must be identified as such and cannot be misleading.
Enforcement
National regulators (BaFin, AMF, CNMV) enforce. Fines can be up to �,�5M or 5-10% of annual turnover. Non-EU projects can be blocked at IP level.
Global impact
MiCA became a de facto template. UK's own framework and MAS in Singapore align conceptually. US remains a patchwork. Any global crypto project now factors MiCA into launch planning.