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Understanding the EU MiCA Framework: A Comprehensive Guide for Businesses and Users
The Markets in Crypto-Assets Regulation (MiCA) framework is the European Union’s landmark legislation for crypto-assets. As the most comprehensive crypto regulation globally, MiCA is designed to harmonize rules across the EU, enhance consumer protections, and foster innovation while mitigating risks in the crypto-asset ecosystem. This article provides a deep dive into MiCA’s objectives, scope, compliance requirements, and implications for businesses and users.
What is MiCA?
MiCA, or the Markets in Crypto-Assets Regulation, is the EU’s framework for regulating crypto-assets, covering:
- Token issuance (e.g., stablecoins, utility tokens).
- Crypto service providers (e.g., exchanges, custodians, brokers).
- Market abuse rules to prevent manipulation and insider trading.
MiCA applies uniformly across all 27 EU member states, enabling companies to operate under a single set of regulations, and eliminating the need for multiple licenses across borders.
Why MiCA Was Introduced
MiCA was created to address challenges in the crypto ecosystem:
- Regulatory Fragmentation: Before MiCA, EU countries…
