MiCA is live in the EU — here is what changed, what is still unregulated, and what UK and EU investors need to watch in 2026.
What Is MiCA?
The Markets in Crypto-Assets Regulation (MiCA) is the EU’s comprehensive regulatory framework for crypto-assets. It came into full force in December 2024, covering crypto-asset service providers (CASPs), stablecoin issuers, and other crypto market participants operating in the EU.
What MiCA Covers
- Crypto-asset service providers must be authorised by an EU national competent authority
- Stablecoin issuers face capital requirements and redemption rights for holders
- Market abuse rules (including pump-and-dump prohibition) now apply to crypto markets
- Disclosure requirements for crypto-asset issuers (similar to prospectus requirements)
What MiCA Does NOT Cover
- NFTs (most are excluded, though some may fall within scope)
- Fully decentralised protocols with no identifiable issuer
- DeFi protocols (largely excluded, though under review)
- Bitcoin and Ethereum (covered as “other crypto-assets” but with lighter requirements)
Implications for UK Investors
The UK is not subject to MiCA — it is developing its own crypto regulatory framework. However, UK investors dealing with EU-based CASPs will benefit from MiCA protections. The UK’s Financial Services and Markets Act 2023 gives the FCA powers to regulate crypto, with detailed rules expected in 2025–2026.
What Still Isn’t Regulated
Despite MiCA, significant gaps remain. Most DeFi protocols, many NFT projects, and cross-border operations from non-EU jurisdictions remain largely unregulated. Investors should not assume that MiCA provides comprehensive protection — always verify the regulatory status of any platform before investing.