The EUs Markets in Crypto-Assets MiCA Regulation — a status update

Level 2 and 3 texts: Status update and tracker

For more information on the status of Level 2 and Level 3 texts supplementing MiCA, click here to download our tracker.

Although MiCA has been fully applicable since 30 December 2024, the process of finalizing Level 2 and Level 3 measures (e.g. delegated and implementing acts, as well as guidelines, setting out in more granularity how the obligations laid down in MiCA are to be complied with) is ongoing.

Recently, on 13 February 2025, a number of Delegated Regulations supplementing MiCA were published in the Official Journal of the European Union, including:

• Regulatory technical standards (“RTS”) specifying the requirements, templates and procedures for the prompt, fair and consistent handling of complaints, as required under MiCA to be established and maintained by:
  • issuers of asset referenced tokens (“ARTs”), in accordance with Art. 31(5) of MiCA (Commission Delegated Regulation (EU) 2025/293), and
  • cryptoasset services providers (“CASPs”), in accordance with Art. 71(5) of MiCA (Commission Delegated Regulation (EU) 2025/294).

• RTS in relation to the requirement on CASPs to ensure continuity and regularity in the performance of crypto-asset services, in accordance with Art. 68(10) of MiCA (Commission Delegated Regulation (EU) 2025/299). In particular, Article 68 of MiCA requires CASPs to implement specific governance arrangements, including employing appropriate procedures to ensure resilience and secure ICT systems (such as business continuity policies) as required by Regulation (EU) 2022/2554, also known as the Digital Operational Resilience Act (or “DORA”) (please visit our Operational Resilience Hub for further information about DORA). Among other things, the RTS clarifies that CASPs may use permissionless blockchains over which they have no control—in such cases, CASPs may not be capable of ensuring the regulatory and continuity of their services if disruption is caused by an issue in such permissionless distributed ledgers, but CASPs should include mechanisms for the timely communication with their clients in the event of such disruption, as part of their business continuity policy measures.
• RTS specifying the procedure for the approval of a crypto-asset white paper (of ARTs issued by credit institutions), in accordance with Art. 17(8) of MiCA (Commission Delegated Regulation (EU) 2025/296). As a reminder, credit institutions intending to issue ARTs do not need specific authorisation under MiCA, but are required under Art. 17(1)(a)-(b) of MiCA (i) to notify, and (ii) to produce a white paper that is approved by, the relevant national competent authority (“NCA”). The RTS aims to harmonize the steps and timeframes of the white paper approval procedure, and sets out a similar procedure to the notification procedure (e.g. similar to the timeline set out in Art.17(3) of MiCA, competent authorities should assess whether the crypto-asset white paper is complete—or if information is missing—within 20 working days of receiving the application for approval).
• RTS specifying the methodology to estimate the number and value of transactions associated to uses of ARTs, and of e-money tokens (“EMTs”) denominated in a currency that is not an official currency of a member state, as a means of exchange, in accordance with Art. 22(6) of MiCA (Commission Delegated Regulation (EU) 2025/298). Such transactional data constitutes part of the information that issuers of ARTs and EMTs in scope of Art. 22 are required to report to the relevant competent authority on a regular basis.
• RTS relating to the cooperation and coordination of supervisory authorities, including:
  
  • RTS specifying the conditions for the establishment and functioning of consultative supervisory colleges for issuers of significant ARTs or significant e-money tokens (EMTs), in accordance with Art. 119(8) of MiCA (Commission Delegated Regulation (EU) 2025/297).
  • RTS establishing a template document for co-operation arrangements between competent authorities and supervisory authorities of third countries, in accordance with Art. 107(3) of MiCA (Commission Delegated Regulation (EU) 2025/292).

The Delegated Regulations listed above will enter into force 20 days after their publication in the Official Journal, i.e. 5 March 2025.

Additionally, on 20 February 2025, the RTS (Commission Delegated Regulation (EU) 2025/303) and ITS (Commission Implementing Regulation (EU) 2025/304) with regard to the requirements on certain financial entities in relation to their notifications to competent authorities of their intention to provide crypto-asset services were published in the Official Journal of the European Union.  These will enter into force on 12 March 2025 (i.e. 20th day following publication in the Official Journal).

Ongoing areas of development

In addition to the Level 2 and Level 3 texts supplementing MiCA, other areas of ongoing development include the following:

• Interplay with national regimes and transition periods: Although MiCA intends to establish a harmonized framework for the regulation of crypto-asset markets across the EU, MiCA allows Member States the option of implementing transitional measures, including a grand-fathering provision which permits entities providing crypto-asset services in accordance with national applicable laws before 30 December 2024 to continue to do so until 1 July 2026, or until they are granted or refused a MiCA authorisation (Art. 143(3) of MiCA). 

Accordingly, as highlighted in ESMA’s Statement on MiCA Transitional Measures (dated 17 December 2024), CASPs will face different transitional periods depending on the Member State(s) in which they are active, and will not benefit from passporting rights under MiCA without a MiCA authorisation under national transitional regimes. 

Therefore, in these initial months of MiCA being fully applicable, businesses will need to navigate a mix of national regimes which currently co-exists across EU Member States. Some uncertainty also remains in respect of the interplay between MiCA and pre-existing national anti-money laundering regimes (via national implementations of the fifth EU Anti-Money Laundering Directive (“5AMLD”)), and the potential restriction on the rights of MiCA-authorised CASPs to passport crypto-asset services across the EU in practice. (See also our previous article and comparative guide on national implementations of MiCA.)

• Non-MiCA compliant stablecoins: Although the provisions under MiCA relating to ARTs and EMTs have been applicable since 30 June 2024, new guidance on the provision of crypto-asset services relating to non-MiCA compliant AMTs and EMTs have recently been published in a Q&A Response by the European Commission and a Public Statement by ESMA (dated 17 January 2025). 

The Q&A clarifies that certain crypto-asset services may amount to an offering to public of AMTs or EMTs (which, since 30 June 2024, must be carried out in compliance with MiCA), including exchange services, reception and transmission of orders or execution services where CASPs promote or advertise an ART or EMT as part of such services. ESMA additionally states that CASPs are expected to prioritize restriction of existing services that support the purchase of non-MiCA compliant ARTs and EMTs—such restrictions should be complete by the end of January 2025, although ESMA notes that CASPs may continue to provide services on a “sell-only” basis for a longer period (i.e. end of Q1 2025), in order to allow holders of such ARTs and EMTs in the EU to liquidate or convert their positions. For example, CASPs operating trading platforms are, in practice, expected to stop making non-MiCA compliant ARTs or EMTs (i.e. ARTs and EMTs which are issued by persons not appropriately authorised in the EU) available for trading. ESMA further notes that NCAs should ensure compliance by CASPs in respect of non-MiCA compliant ARTs or EMTs as soon as possible and no later than the end of Q1 2025. 

There have already been reports of de-listings of popular stablecoins from well-known exchanges for the EU market—as CASPs, NCAs and other stakeholders continue to adapt to the new requirements, we expect the impact of MiCA on the stablecoin market in the EU to become increasingly evident over the course of Q1 2025.

• Interplay with payments regime: As highlighted in a letter (dated 6 December 2024) by the European Commission to the EBA and ESMA, there is a certain overlap between MiCA, and Directive (EU) 2015/2366 (“PSD2”) which regulates the provision of payment services in the EU. The key concern identified in the letter is the potential requirement for dual authorisation (e.g. where the activity of transferring EMTs—which constitute “funds” under PSD2—by CASPs authorised under MiCA may also be considered to be a payment service requiring authorisation under PSD2). Among other things, the letter notes the significant administrative burden for both CASPs and NCAs if such dual authorisation were to be required, as well as the diverging interpretations amongst Member States regarding the interplay between MiCA and PSD2 which may result in inconsistent applications of MiCA and PSD2 requirements. 

Although PSD2 is currently undergoing reform, and the developing regime under PSD3/PSR may seek to resolve such issues, the expected date of application of the new framework is still several years away. In the meantime, the letter proposes the possibility of the EBA and ESMA issuing a “no action letter” in respect of the enforcement of PSD2 authorisation requirements, as regards to crypto-asset services involving EMTs that may inadvertently fall within scope of PSD2. 

It remains to be seen what approach will be taken to address the overlap—the EBA has published a short letter (dated 10 December 2024), which acknowledges the concerns raised by the European Commission and noting that the EBA (in coordination with ESMA) will aim to publish a response on the best options going forward by April 2025.

Authored by Eimear O’Brien and Christina Wu