Brussels, Belgium. The Markets in Crypto-Assets Regulation (MiCA) is reshaping Europe’s crypto market while exposing new regulatory challenges, according to Cyprus Securities and Exchange Commission (CySEC) chairman George Theocharides. He outlined his views in an article first published in Eurofi magazine.
MiCA as a structural shift
Theocharides described MiCA as a structural shift for the EU crypto-asset market, saying a sector that previously operated largely outside a harmonised regulatory framework is now subject to common rules, authorisation requirements and supervisory oversight across the European Union.
“The Markets in Crypto-Assets Regulation represents a structural shift for the EU crypto-asset market,” he said.
Benefits and reduced fragmentation
Theocharides said the transition is already delivering tangible benefits, particularly through improved legal certainty and clearer regulatory expectations for both firms and users operating within the bloc.
“This transition is already generating tangible benefits, notably through enhanced legal certainty and regulatory clarity for firms and users,” he said.
He added that MiCA reduces fragmentation by introducing clear classifications for crypto-assets, including asset-referenced tokens (ARTs), e-money tokens (EMTs) and other crypto-assets, while establishing a harmonised compliance baseline across member states.
Investor protection and market integrity measures
Theocharides said investor protection has been strengthened through stricter authorisation requirements for crypto-asset service providers, including governance standards, internal controls, conflict of interest management, safeguarding of client assets and operational resilience.
He also said market integrity has been reinforced through a crypto-specific market abuse regime addressing insider dealing and market manipulation, aiming to bring greater transparency and fairness to previously under-regulated markets.
Passporting and emerging implementation challenges
Theocharides said MiCA’s passporting regime enables authorised firms to expand across the EU under a single licence, supporting cross-border activity and contributing to the integration of the internal market.
He cautioned that as implementation progresses, practical challenges are beginning to emerge, particularly around how certain provisions operate in practice.
How do you think MiCA will affect crypto-asset firms and users operating across the European Union?
