Quick answer
MiCA is the EU's landmark crypto law — unifying regulation across 27 countries and requiring all exchanges to be licensed.
Regulations
Germany
World
MiCA Regulation
The EU's Markets in Crypto-Assets regulation — the world's first comprehensive legal framework governing crypto issuance and service providers across all 27 EU member states.
GermanyWorldUnderstanding MiCA Regulation on crypto
The Markets in Crypto-Assets Regulation (MiCA) is EU-wide legislation that came into full force in December 2024, creating a unified regulatory framework across all 27 EU member states. It covers issuers of crypto-assets (including stablecoins), authorisation requirements for Crypto-Asset Service Providers (CASPs), and market abuse provisions. Any company offering crypto exchange, custody, portfolio management, or advisory services in the EU must obtain a CASP licence from their home-country regulator — which then 'passports' across all EU member states. MiCA does not directly set tax rates — taxation remains with each member state.
The Markets in Crypto-Assets Regulation (MiCA) is EU-wide legislation that came into full force in December 2024, creating a unified regulatory framework across all 27 EU member states. It covers issuers of crypto-assets (including stablecoins), authorisation requirements for Crypto-Asset Service Providers (CASPs), and market abuse provisions. Any company offering crypto exchange, custody, portfolio management, or advisory services in the EU must obtain a CASP licence from their home-country regulator — which then 'passports' across all EU member states. MiCA does not directly set tax rates — taxation remains with each member state.
What this means for your crypto activity
CASP licensing required
Exchanges without a MiCA CASP licence operating in the EU after December 2024 are doing so illegally.
Stablecoin rules
Stablecoin issuers face strict reserve and redemption requirements — some have been delisted on EU exchanges.
Tax unchanged
MiCA does not change how your crypto gains are taxed — income tax and CGT rules remain national.
Stronger KYC/AML
CASP licensing requires robust KYC/AML procedures — expect more identity verification.
NFTs and DeFi scope
NFTs and DeFi protocols are largely outside MiCA's current scope but under review.
- Exchanges without a MiCA CASP licence operating in the EU after December 2024 are doing so illegally.
- Stablecoin issuers face strict reserve and redemption requirements — some have been delisted on EU exchanges.
- MiCA does not change how your crypto gains are taxed — income tax and CGT rules remain national.
- CASP licensing requires robust KYC/AML procedures — expect more identity verification.
- NFTs and DeFi protocols are largely outside MiCA's current scope but under review.
Seeing it in action
Example scenario
A German exchange applies for a MiCA CASP licence from BaFin. Once approved, the licence allows it to operate across all 27 EU member states without separate national registrations. A rival exchange without a licence that actively markets to EU residents after December 2024 faces enforcement action from national regulators.
How this works across jurisdictions
- Germany
BaFin is the competent authority; Germany's pre-existing crypto custody licence gives German CASPs a compliance head start.
- World
EU-wide: Passport principle allows one CASP licence to cover all 27 member states; national regulators enforce within their jurisdiction.
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