MiCA: the EU crypto-asset regulation in brief

MiCA (Markets in Crypto-Assets) is a European Union regulation that introduces common rules for issuers of certain crypto-assets and for firms providing services related to them. It covers, among other things, requirements for stablecoins, an obligation for service providers (CASPs) to hold authorization, customer protection rules and rules against market abuse.

The regulation does not ban holding cryptocurrencies, nor does it make them safe: it is meant to harmonize the rules and make supervision easier. It does not cover the whole market, because unique NFTs (non-fungible tokens) and fully decentralized services, among other things, remain outside it. The scope and dates of application depend on the type of entity, and national supervisory authorities apply it, so it is worth checking the details in current sources.