MiCA (Markets in Crypto-Assets Regulation)

What is MiCA

Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets (MiCA) is the European Union’s first harmonised regulatory framework specifically designed for crypto-asset markets. Published in the Official Journal of the EU on 9 June 2023 and fully applicable from 30 December 2024, MiCA replaced the patchwork of national regimes that had previously governed crypto-asset activities across Member States and established a single market for digital asset services in the EU.

As an EU Regulation, MiCA is directly applicable in all Member States without requiring national transposition. In Spain, it partially displaced the transitional regime established by Royal Decree-Law 7/2021 for providers of virtual currency exchange and custody services.

Token categories under MiCA

MiCA distinguishes three main categories of crypto-assets, each subject to a different regulatory regime:

• Utility tokens: Crypto-assets providing access to a good or service. Issuers of utility tokens with a public offer exceeding €1 million must publish a registered white paper, but no prior authorisation is required.
• Asset-referenced tokens (ART): Crypto-assets whose value is stabilised by reference to a basket of assets, currencies or commodities. Issuers must obtain CNMV authorisation and meet minimum capital requirements (from €350,000).
• E-money tokens (EMT): Crypto-assets referencing a single fiat currency. Require Banco de España authorisation and must comply with e-money regulation.

Crypto-Asset Service Providers (CASPs)

Operators providing custody, trading platform management, exchange, placement, reception and transmission of orders, or advisory services on crypto-assets must register as CASPs with the CNMV under Title V of the Regulation. The authorisation process carries a legal deadline of three months from submission of a complete application file.

Entities that had been operating in Spain under the Banco de España’s prior virtual asset service provider register were entitled to a grandfathering transitional period that closed at the end of 2024.

Practical implications for businesses

The core practical challenge under MiCA is the correct classification of the token being issued or used. A self-described “utility token” may in reality be an asset-referenced token requiring CNMV authorisation, or even a financial instrument subject to MiFID II. Misclassification — whether by omitting required authorisation or applying the wrong regulatory regime — carries severe legal consequences: transactions may be void, and administrative fines can reach 12.5% of total annual revenue or €1 million for natural persons under Article 111 MiCA.

CASPs must also comply with organisational, capital, governance and anti-money laundering requirements that overlap with obligations under Spain’s Ley 10/2010 on the prevention of money laundering and terrorist financing.

For a detailed analysis of MiCA requirements applicable to your business model, see BMC’s financial regulatory practice.