MiCA is here: is your company ready?

The crypto industry in Europe has entered a new phase.  

The Markets in Crypto-Assets regulation (MiCA) is now in force across the EU.  

If you're involved in the crypto space, understanding and applying its requirements is necessary to stay compliant and to build long-term trust with clients and regulators alike. 

In a recent Trapets webinar, experts from Harvest Advokatbyrå and Trapets outlined what MiCA entails, when and how it applies, and how crypto service providers can align their operations with its requirements. Below are the key takeaways and recommended actions for crypto businesses operating in the EU. 

What is MiCA? 

The Markets in Crypto-Assets regulation (MiCA) is a comprehensive legal framework for crypto assets and the businesses that provide services around them in the European Union.  

It sets out clear rules for the issuance, trading, and handling of crypto assets within the EU, aiming to increase transparency, reduce risk, and bring consistency across all member states. 

In simple terms, MiCA is the EU’s attempt to bring crypto closer to the same standards as traditional financial markets, especially when it comes to protecting consumers, preventing financial crime, and supervising trading activity. 

As Axel Schelén from Harvest explained during the session, 

“The overall purpose of MiCA was to harmonise the regulation across the Union and to provide an even playing field for all actors wanting to conduct crypto business in Europe.” 

Who’s affected by MiCA? 

MiCA is divided into three primary areas: 

• Issuers of crypto assets, particularly stablecoins and other tokens offered to the public. 
• Crypto asset service providers (CASPs), such as exchanges, wallet providers, and trading platforms. 
• Market abuse rules, applying to all individuals and firms involved in crypto trading. 

MiCA and market abuse rules 

One of MiCA’s most significant features is its introduction of market abuse rules for crypto assets.

These are modelled after the Market Abuse Regulation (MAR) for traditional financial instruments, and cover issues such as insider trading, manipulation, and improper disclosure.

CASPs are expected to monitor, detect, and report suspicious activity, including insider trading, manipulation, and unauthorised disclosure of information.  

Other expectations include: 

• Ongoing analysis of orders, trades, and other events on the DLT (Distributed Ledger Technology). 
• Use of surveillance systems which must include human oversight and automated monitoring, with capabilities to scan on-chain data continuously. 
• Filing suspicious transaction reports (STRs) to the representative authorities without delay. 

MiCA and anti-money laundering rules 

When it comes to anti-money laundering (AML), MiCA doesn’t replace the AML regulation, but it rather reinforces it. CASPs remain subject to EU anti-money laundering directives, including the upcoming AML package and the so-called Travel Rule. 

Per Friberg, Financial Crime Surveillance Officer at Trapets, explained why this adds a new layer of complexity.  

Traditional financial transactions usually involve separate payment and settlement legs. Crypto trades don’t: ownership and payment are often one and the same. That makes it harder to distinguish between a simple transaction and a suspicious transfer of value. 

Friberg also raised a critical point: the Travel Rule requires senders and receivers to be identified, even across decentralised platforms.  

“The personal information cannot be added into the blockchain crypto data, so it has to sort of travel along on the side,” he noted. 

For CASPs, this means building technical solutions that can attach and transmit identity data securely, without compromising compliance or customer privacy. The industry’s long-standing preference for anonymity is no longer compatible with regulatory expectations. 

As Amin Bell, Partner at harvest Advokatbyrå, summarised: 

“CASPs should apply increased standards in relation to measures against money laundering given the risk level in this kind of operation.” 

Surveillance challenges in crypto 

Per Friberg, explained that crypto markets differ significantly from traditional financial instruments: 

“There are no trading hours... it's a borderless digital environment with decentralised actors”. 

This creates unique monitoring challenges, such as: 

• Peer-to-peer and decentralised exchanges lack centralised order books 
• Social media and chat groups often influence price movements 
• Market surveillance must incorporate blockchain analysis and possibly even social media data 

Six steps to become MiCA compliant 

As Per Friberg put it: 

“By adhering to MiCA CASPs not only enhance their own credibility and avoid potential legal repercussions, but they also contribute to maintaining the integrity of the financial systems and the rule of law.” 

Here six practical considerations drawn from the webinar: 

• Invest in proven surveillance systems: This includes solutions for both AML and trade surveillance to monitor crypto activity effectively. 
• Hire experienced staff: Your compliance team must understand trading patterns, blockchain technology, and market abuse indicators. 
• Obtain regulatory approval: Prepare clear documentation of your systems and controls for review by your local Financial Supervisory Authority. 
• Educate your customers: Make sure users understand the risks and rules around crypto trading. 
• Establish clear reporting processes: Set up internal procedures to escalate and report suspicious activities promptly. 
• Coordinate with law enforcement: Be prepared to share information with authorities when needed, efficiently and securely. 

Final thoughts 

MiCA represents a turning point for crypto in Europe. It introduces clarity, and also accountability. For CASPs, this means taking compliance seriously, not as a formality, but as a core component of doing business in the EU. 

Companies that adapt early will be best placed to lead in a regulated and more trusted digital asset market.