Markets in Crypto-Assets (MiCA/MiCAR)

With MiCAR (Regulation (EU) 2023/1114), the regulation on markets in crypto-assets, the EU adopts a harmonised regulatory framework for the crypto-asset market which applies to both traditional institutions of the financial sector and new actors emerging in the crypto ecosystem. These entities must meet a set of specific requirements to benefit from a regulated status recognised at European level.

MiCAR is part of the Digital Finance Package published by the European Commission on 24 September 2020 and aims to bring legal certainty to the crypto-asset ecosystem and support innovation while safeguarding consumer protection, markets integrity and financial stability. To this end, the EU establishes a harmonised framework for the issuance, offer to the public, admission to trading and provision of services related to crypto-assets in the Union.

MiCAR creates a bespoke regime for crypto-assets that are not already covered in European financial services legislation and groups them into three main categories: asset-referenced tokens (“ART”), e-money tokens (“EMT”), and other crypto-assets.

Crypto-asset service providers (“CASP”) are subject to an authorisation regime involving notably prudential and organisational requirements and consequently will be subject to a supervisory regime by the CSSF. Some categories of financial entities that already have a regulated status (i.e. credit institutions, central securities depositories, investment firms, market operators, electronic money institutions, UCITS management companies, alternative investment fund managers) can provide certain services on crypto-assets upon a simple notification.

In a nutshell, MiCAR affects in particular:

• Crypto-asset service providers (“CASP”),
• Issuers of e-money tokens (“EMT”),
• Issuers of asset-referenced tokens (“ART”),
• Issuers of crypto-assets other than EMT or ART.

Please refer to the dedicated webpages from the CSSF website for further information about each of these regulatory statutes.

MiCAR entered into force on 29 June 2023 and became applicable:

• On 30 June 2024 regarding the provisions of Titles III and IV of the regulation relating to the authorisation and supervision of ART/EMT issuers,
• On 30 December 2024 for the rest of the provisions provided for by the regulation, in particular on CASP and issuers of crypto-assets other than ART or EMT.

The CSSF will keep the financial sector informed of the practical implications including the procedures resulting from MiCAR.

The CSSF invites entities considering a submission of an authorisation file with a view to the provision of CASP services or the issuance of ART, EMT or other crypto-assets to contact it as early as possible to initiate a preliminary dialogue with the aim to identify any element that could potentially pose a problem when processing the file.

Please refer to the list of contact points at the bottom of this page to address your request to the relevant department.

RTS, ITS, Guidelines and FAQs published by the European supervisory authorities are available on EBA’s website (for issuers of ART or EMT) and ESMA’s website (for other topics).

The circulars and guidance published by the CSSF as well as forms, templates forms and other practical arrangements are available on the CSSF website in the documentary section at the bottom of the abovementioned dedicated pages (in relation to a specific status) or at the bottom of this page (in connection to general MiCA-related matters).

Entities seeking to issue or provide services on crypto-assets shall first assess whether such crypto-assets fall into the scope of MiCAR by referring notably to:

• Article 2 MiCAR, as well as
• ESMA Guidelines on the conditions and criteria for the qualification of crypto-assets as financial instruments (ESMA75453128700-1323),
• Joint ESA Guidelines on templates for explanations and opinions, and the standardised test for crypto-assets, under Article 97(1) of MiCAR (JC 2024 28).

Certain crypto-assets, for instance those that qualify as financial instruments within the meaning of MiFID II (Directive 2014/65/EU), do not fall within the scope of MiCAR and are therefore subject to other frameworks under the Union legislation on financial services. Therefore, issuers of such crypto-assets and firms carrying out activities related to such crypto-assets shall refer to the relevant rules which are not covered by MiCAR.

Pursuant to Article 143(3) MiCAR and Article 20 of the national law of 6 February 2025 which designates the CSSF as the competent authority responsible for carrying out the functions and duties provided for in MiCAR, a transitional period of 18 months, starting from 30 December 2024 and ending on 1 July 2026, is foreseen for virtual asset service providers (“VASP”) registered with the CSSF before 30 December 2024. VASP may continue to provide the services for which they were registered until 1 July 2026 or until they are granted or refused an authorisation pursuant to Article 63 MiCAR, whichever is sooner.

The CSSF expects any person who intends to commence ART/EMT activities to comply fully with MiCAR as from 30 June 2024.

Issuers who have issued ARTs in accordance with applicable law prior to 30 June 2024 may continue to do so in accordance with the transitional arrangements set out in Article 143(4) and (5) MiCAR. No similar transitional arrangement applies for EMTs.

The regulatory and implementing technical standards and guidelines applicable to such activities are available on the EBA’s website.

The EBA urges issuers and offerors to have regard to these documents and adjust as if those measures were fully applicable, in the case of technical standards pending adoption by the European Commission and publication in the Official Journal of the European Union. This includes measures relating to white papers, governance, complaints handling, own funds, reserve assets, recovery and redemption plans.

All stakeholders providing services related to crypto-assets (exchange, transfer, etc.) should be aware that as from 30 June 2024, all persons carrying out ART/EMT activities should comply with MiCAR.

This means that stakeholders should set up as soon as possible procedures in order to assess compliance with MiCAR of ARTs/EMTs for which they offer related services and should refrain, as from 30 June 2024, from carrying out services that constitute offering to the public, seeking admission to trading or placing non-compliant ARTs/EMTs.