MiCA (Markets in Crypto-Assets Regulation)

Key facts (as of 29 October 2026)

• Application: 30 June 2024 for the asset-referenced token (ART) and e-money token (EMT) titles; 30 December 2024 for the rest, including crypto-asset service providers (CASPs) (MiCA, Art. 149).
• Transitional period: expired across the EU on 1 July 2026. ESMA said that after that date, any entity providing crypto-asset services to EU clients without a MiCA licence "will be in breach of EU law and must cease offering such services" (ESMA, 17 April 2026).
• Registers: ESMA's interim register (files last updated 22 October 2026, read 29 October 2026) lists 50 e-money token white papers from 25 issuers, no ART issuers, and 387 CASP entries covering 384 distinct legal entities (ESMA interim MiCA register).
• Enforcement on stablecoins: ESMA's opinion of 8 October 2026 tells national authorities to ensure CASPs stop services that keep non-MiCA-compliant ARTs and EMTs available to EU clients. Remaining legacy exposures must be remediated "no later than three (3) months following the date of publication", which means about 8 January 2027 (ESMA opinion, para. 27). CryptoSlate reports that Coinbase will convert remaining balances of 14 restricted tokens, including USDT and PYUSD, for EEA retail on 30 October 2026 (CryptoSlate; Coinbase's help page could not be read this pass).
• USDT: Tether has no EU authorisation and no notified white paper (it is absent from ESMA's EMT file). ESMA's January 2025 statement required compliance on non-MiCA stablecoins by the end of Q1 2025, with sell-only services allowed until then (ESMA, 17 January 2025).
• EEA: MiCA was incorporated into the EEA Agreement by Joint Committee Decision 41/2025, in force from 24 June 2025 (EFTA).

Token categories

EMT holders have a right to redeem at par, at any time, without a fee. Issuers and CASPs may not pay interest (Arts. 40, 50). At least 30% of EMT reserves must sit on deposit at credit institutions (Art. 54).

Significant tokens and the non-EU-currency cap

The EBA assigns significant status where at least three of the Article 43(1) criteria are met. They include more than 10 million holders; more than 2.5 million transactions and €500 million of average daily transactions; and a value, market capitalisation or reserve above €5 billion (MiCA, Art. 43(1), applied to EMTs by Art. 56).

Separately, an EMT pegged to a non-EU currency, mainly the US dollar, that is used as a means of payment is capped. Once it exceeds both 1 million transactions and €200 million a day (quarterly averages), the issuer must stop issuing and, within 40 working days, file a plan with its regulator (Art. 23 read with Art. 58(3)).

Who is on the EMT register

ESMA's EMT file (read 29 October 2026) includes Circle Internet Financial Europe SAS, Société Générale - Forge, Paxos Issuance Europe Oy, Banking Circle S.A., Quantoz Payments B.V, StablR Ltd, Monerium ehf, AllUnity GmbH and CACEIS Bank, among 25 issuers. Check the register directly before relying on any token.

CASPs

A CASP authorised in one member state can passport across the EU. Minimum capital depends on the service class (Annex IV):

Custodians must segregate client assets and may not use them for their own account (Arts. 70, 75). They are liable for losses they cause, up to the asset's market value at the time of loss (Art. 75(8)). CASPs have also been in scope of DORA, the Digital Operational Resilience Act, since 17 January 2025 (Regulation (EU) 2022/2554, Art. 64).

The end of the transitional period

ESMA's statement of 17 April 2026 set out its expectations:

• Wind-down. Unauthorised CASPs must have implemented their wind-down plans by 1 July 2026, including moving client assets to an authorised CASP or a self-hosted wallet, with prior notice.
• Earlier cut-offs. Two groups could not provide services even before 1 July 2026: firms that were not providing services under national law before 30 December 2024, and firms in member states whose transitional period had already ended.
• Third-country firms. Outside the narrow reverse-solicitation exception, firms established outside the EU may not provide MiCA services to EU clients. ESMA said this "also applies in a business-to-business context", and that CASPs may not outsource custody to entities that are not authorised CASPs.
• Consumer warning. MiCA protections apply only to the specific authorised EU legal entity, not to other group companies or non-EU entities. Clients should check the ESMA Interim MiCA Register.

flowchart TD
    A[Counterparty offers crypto services to your EU entity] --> B{Listed as authorised CASP on ESMA register?}
    B -- No --> C{Reverse solicitation genuinely applies?}
    C -- No --> X[Do not use for EU business]
    C -- Yes --> L[Get legal advice and document it]
    B -- Yes --> D{Is the contracting entity the authorised EU entity?}
    D -- No --> X
    D -- Yes --> E{Token MiCA-compliant?}
    E -- No --> Y[Expect service to stop by Jan 2027]
    E -- Yes --> OK[Proceed with normal due diligence]

WarningFor any business with EU counterparties, the token matters. Settling in a token without MiCA authorisation increasingly means EU-licensed partners cannot touch it. Check the ESMA register before choosing a settlement coin.

NoteThe EU dollar-EMT cap is unlikely to bind most merchants directly. It is one reason euro tokens such as EURC matter for euro-denominated settlement.

Linked regimes

See Travel Rule.

Illustrative example: an EU-facing PSP

Illustrative example. The business and figures are invented.

A Lithuanian payment institution settles 40 EU merchants in USDT through a non-EU OTC desk. In 2026 its legal review finds two problems. The desk is not an authorised CASP and cannot serve it, even B2B. And USDT is not MiCA-compliant, so authorised CASPs will stop servicing it. The PSP moves to an authorised CASP, offers merchants USDC or EURC, and keeps a short notice period for merchants who still want USDT off-ramped outside the EU through their own providers.

Timeline

Q/A

Is USDT illegal in the EU?

Holding it is not prohibited. But authorised CASPs are being told to stop servicing non-compliant stablecoins, so access through regulated EU venues is closing.

Does a MiCA licence protect my funds like a bank deposit?

No. There is no deposit-guarantee scheme for crypto-assets. Protection comes from segregation and custodian liability.

Can a non-EU OTC desk serve my EU company?

Generally not for MiCA services, outside the narrow reverse-solicitation exception. ESMA says this applies B2B too.

Is a group's EU licence enough?

Only the authorised EU legal entity is covered. Contract with that entity.

Do I need a CASP licence to accept stablecoins for goods?

Accepting crypto as payment for your own goods is generally not a CASP service. Exchanging, transferring or holding crypto for others may be. Take legal advice.

What happens if a dollar EMT hits the cap?

The issuer must stop issuing and present a plan to get back below the threshold. Existing tokens remain redeemable.

Sources

• ESMA, Statement on the End of Transitional Periods under MiCA (17 April 2026, ESMA75-113276571-1679)
• ESMA, Opinion on non-MiCA-compliant ARTs and EMTs (8 October 2026): https://www.esma.europa.eu/sites/default/files/2026-10/ESMA75-113276571-1742_Opinion_on_the_provision_of_crypto_asset_services_in_relation_to_non-MiCA-compliant_asset-referenced_tokens_and_e-money_tokens.pdf
• ESMA, Statement on non-MiCA compliant ARTs and EMTs (17 January 2025): https://www.esma.europa.eu/sites/default/files/2025-01/ESMA75-223375936-6099_Statement_on_stablecoins.pdf
• ESMA, interim MiCA register (CSV files for EMT white papers, ARTs and CASPs): https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica
• EFTA, EEA-Lex factsheet for Regulation (EU) 2023/1114: https://www.efta.int/eea-lex/32023r1114
• Directive (EU) 2023/2226 (DAC8): https://eur-lex.europa.eu/eli/dir/2023/2226/oj
• Regulation (EU) 2022/2554 (DORA): https://eur-lex.europa.eu/eli/reg/2022/2554/oj
• CryptoSlate, Coinbase conversion notice report (27 October 2026): https://cryptoslate.com/coinbase-sets-3-day-mica-deadline-for-usdt-paypal-and-trump-linked-stablecoins/
• EUR-Lex summary, Regulation (EU) 2023/1113: https://eur-lex.europa.eu/EN/legal-content/summary/information-accompanying-transfers-of-funds-and-certain-crypto-assets.html
• Regulation (EU) 2023/1114 (MiCA): https://eur-lex.europa.eu/eli/reg/2023/1114/oj