MiCA (Markets in Crypto-Assets Regulation)
MiCA is the EU's Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114, which sets rules for issuing crypto-assets and for crypto-asset service providers across the EU. Its stablecoin rules have applied since 30 June 2024 and the rest since 30 December 2024.
This page explains the rules in general terms and is not legal or regulatory advice. Check the primary source and take advice on how the rules apply to your firm.
Jurisdiction: European Union: Regulation (EU) 2023/1114. Titles III and IV applied from 30 June 2024 and the rest from 30 December 2024; the transitional period for existing crypto-asset service providers ended on 1 July 2026.
How it works
MiCA sorts crypto-assets into three types. An e-money token is one that "purports to maintain a stable value by referencing the value of one official currency". An asset-referenced token references another value or right, or a combination, including one or more official currencies. Everything else, such as utility tokens, falls into the third group. Titles III and IV, covering asset-referenced and e-money tokens, applied from 30 June 2024.
E-money tokens must be issued by a credit institution or an e-money institution. Holders have a claim on the issuer, which must issue at par on receipt of funds and redeem at any time and at par, in funds other than e-money, without a redemption fee. Article 50 bars issuers from granting interest on e-money tokens.
Crypto-asset service providers need MiCA authorisation. Firms operating under national law before 30 December 2024 could continue until 1 July 2026 at the latest, and ESMA has stated that from that date any entity providing crypto-asset services to EU clients without a MiCA licence is in breach of EU law. For payment firms, the practical test is whether each token and each venue they use is authorised for EU clients.
Example
An e-money institution in Lithuania issues a euro e-money token under MiCA. A business holder asks to redeem 250,000 tokens. The issuer must pay EUR 250,000 at par, without a redemption fee, in funds other than e-money, under the redemption conditions stated in its white paper.
Frequently asked questions
Does MiCA cover the travel rule for crypto transfers?
No. That sits in a separate regulation, (EU) 2023/1113, which also applies from 30 December 2024.
When did the transitional period end?
On 1 July 2026 across the EU. Member states could set a shorter period.
Where Polynopsis fits
Polynopsis gives no regulatory advice. It shows where a payment company's stablecoin and fiat balances sit, in one read-only position.
Related terms
Sources
- Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) · EUR-Lex, Publications Office of the European Union
- Statement on the end of transitional periods under MiCA (April 2026) · European Securities and Markets Authority
- Directive 2009/110/EC on the business of electronic money institutions · EUR-Lex, Publications Office of the European Union
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
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