What it means
Markets in Crypto-Assets: the EU's rulebook for crypto-assets and the companies that issue or handle them, in force since 2024.
MiCA became law in June 2023. Its rules for stablecoins apply from 30 June 2024, and the rest, including the rules for exchanges and other service providers, from 30 December 2024.
How it works
It sorts crypto-assets into three groups: e-money tokens, which track one currency such as the euro or dollar; asset-referenced tokens, which track a basket or another asset; and all other crypto-assets.
An e-money token can only be issued by a bank or a licensed e-money institution. The issuer must hold reserves equal to the tokens in circulation, keep most of them with banks or in safe assets, and let holders redeem their tokens at face value at any time.
Issuers of e-money tokens can't pay interest to holders. Any return on stablecoins comes from somewhere else, such as a lending market, and carries its own risk.
Companies that hold, exchange or transfer crypto for customers need a MiCA licence from one EU country, which then lets them serve the whole EU. Firms already working before MiCA could keep going during a national transition period, which ended by 1 July 2026.
Stablecoins that aren't authorised under MiCA, such as Tether's USDT, can't be offered to the public in the EU, so many exchanges stopped offering them to EU users.
EURC and USDC are both issued by Circle as e-money tokens under MiCA. MiCA regulates the issuer and service providers. It doesn't make a stablecoin a bank deposit, and deposit guarantees don't cover it. See the best euro stablecoin guide.
Related terms
| Term | What it means |
|---|---|
| Stablecoin | A token on a blockchain designed to keep a steady value, usually one dollar or one euro, backed by reserves. |
| EURC | A euro stablecoin issued by Circle: one EURC is meant to be worth one euro, backed by euro reserves. |
| USDC | A dollar stablecoin issued by Circle: one USDC is meant to be worth one US dollar, backed by dollar reserves. |
| Crypto-asset | The EU's legal term for a digital token recorded on a blockchain, from bitcoin to stablecoins. |
This glossary explains terms in general. It isn't investment, tax or legal advice.