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Learn more about how MarketGuard AML compliance software can assist a European VASP and CASP with blockchain transaction monitoring and Travel Rule

Markets in Crypto-Assets (MiCA)

MiCA stands for Markets in Crypto-Assets Regulation. It is a proposed regulatory framework by the European Commission aimed at establishing harmonized rules for the issuance, trading, and custody of crypto-assets within the European Union (EU). The framework aims to provide legal certainty and protection for consumers and investors while promoting innovation in the crypto industry.

Under MiCA, crypto-assets are defined as digital representations of value or rights that can be transferred, stored, or traded electronically. The regulation covers all types of crypto-assets, including cryptocurrencies, tokens, and stablecoins, whether they are centralized or decentralized.

MiCA also sets out rules for the authorization and supervision of crypto-asset service providers (CASP), which are defined as persons whose occupation or business is the provision of one or more crypto-asset services to third parties on a professional basis. The framework lists several activities as crypto-asset services, such as custody and administration of crypto-assets on behalf of third parties, operation of a trading platform, and exchange of crypto-assets for fiat currency or other crypto-assets.

Overall, MiCA aims to establish a comprehensive and consistent regulatory framework for crypto-assets across the EU, while balancing the need for investor protection with the need to promote innovation and competitiveness in the crypto industry