MiCA
The EU’s Markets in Crypto-Assets Regulation sets common rules for crypto issuers, exchanges, custodians, and certain stablecoins.
MiCA, short for Markets in Crypto-Assets Regulation, is the European Union’s framework for regulating many crypto assets and crypto service providers. It creates shared rules across EU member states for activities such as issuing tokens, operating crypto exchanges, providing custody, and offering certain stablecoins. Its goal is to replace a patchwork of national rules with a single regulatory standard focused on consumer protection, market integrity, transparency, and operational resilience.
MiCA matters because it gives crypto businesses clearer requirements for serving EU users and gives users more consistent disclosures and safeguards. For example, a crypto exchange that wants to operate across the EU may need authorization as a crypto-asset service provider and must meet rules on governance, complaint handling, asset safeguarding, and conflicts of interest. Stablecoin issuers face additional obligations, such as maintaining reserves and providing redemption rights. MiCA does not cover every crypto activity, such as fully decentralized protocols in all cases, but it is one of the most significant attempts to bring crypto markets into a mainstream regulatory framework.
Other terms in Regulation & Tax
AML
Anti-money laundering rules and processes aim to stop criminals from using financial systems, including crypto platforms, to hide or move illicit funds.
BitLicense
A state license required for many virtual currency businesses that serve customers in New York.
CARF
CARF is an OECD framework for tax reporting and automatic exchange of information about crypto-asset transactions.
Crypto Tax Loss Harvesting
A tax strategy where investors sell crypto at a loss to realize a capital loss that may offset taxable gains, subject to local rules.