| Aspects | Detail |
|---|---|
| Date of entry into force | 1 January 2025 |
| Objectives | Transparency, investor security, systemic risk limitation |
| Implications for users | Compliance with new rules for transactions, compliance of stables |
URGENT – What the MiCA law changes today for your cryptos
The MiCA regulations, or Markets in Crypto Assets, came into force on January 1, 2025. This European regulation aims to regulate the cryptocurrency market by imposing strict rules to ensure transparency, investor security and the limitation of systemic risks within the EU. This regulation is an important step towards the massive adoption of cryptocurrency in Europe.
MiCA requires stables to be fully backed by liquid and verifiable assets. The issuers of stablecoins must also maintain guarantees ready to cover all issues in the event of a massive demand for redemption. However, USDT, one of the most used stables, does not meet MiCA’s requirements. Tether, the company managing USDT, did not obtain authorisation to operate as an electronic money institution in Europe.
This regulation has direct implications for cryptocurrency users. For example, transactions between centralised platforms must now comply with these new rules. Portfolio owners such as MetaMask, Rabby or Coinbase Wallet must also be aware of these changes.
The objectives of the MiCA regulation
The MiCA regulation has several key objectives. It aims to ensure transparency and investor security while limiting systemic risks within the EU. By imposing strict rules, MiCA seeks to create a more regulated and respected cryptocurrency market. These regulations address growing concerns about the stability and security of cryptocurrency.
MiCA requires stables to be fully backed by liquid and verifiable assets. The issuers of stablecoins must also maintain guarantees ready to cover all issues in the event of a massive demand for redemption. These measures are aimed at protecting investors and ensuring the stability of the cryptocurrency market.
Implications for cryptocurrency users
The MiCA regulation has direct implications for cryptocurrency users. Transactions between centralised platforms must now comply with these new rules. Portfolio owners such as MetaMask, Rabby or Coinbase Wallet must also be aware of these changes.
For example, USDT, one of the most used stables, does not meet MiCA requirements. Tether, the company managing USDT, did not obtain authorisation to operate as an electronic money institution in Europe. This means that USDT users may need to consider moving to another MiCA compliant stablecoin.
| Aspects | Detail |
|---|---|
| Date of entry into force | 1 January 2025 |
| Objectives | Transparency, investor security, systemic risk limitation |
| Implications for users | Compliance with new rules for transactions, compliance of stables |
URGENT – What the MiCA law changes today for your cryptos
The MiCA Act and the TFR (Transfer of Funds Regulation) introduce major changes in the world of cryptocurrency. Transparency is a crucial issuein particular with regard to reserves of stables such as USDT. A full and detailed video is planned to explore this aspect. The TFR, for its part, aims to regulate cryptocurrency transfers with three main objectives: to combat money laundering and terrorist financing, to ensure that each transfer can be linked to an verified identity, and to reduce the risks associated with licit activities on crypto networks.
TFR objectives
The TFR has three main objectives:
- Combating money laundering and terrorist financing.
- Ensure that every cryptocurrency transfer can be linked to a verified identity.
- Reduce risks associated with licit activities on crypto networks. This European regulation focuses on the traceability of crypto transfers.
Practical implications
Today, for each transfer between regulated platforms, the data of the sender and the recipient (name and address) must be shared. For transactions over 1000 €, it will be necessary to prove ownership of the personal portfolio. Approved platforms, such as Binance, Coinbase and OKX, must store this information in a secure manner and make it available to the competent authorities in case of investigation or control.
| Objective | Description |
|---|---|
| Combating money laundering and terrorist financing | Secure transactions |
| Ensuring traceability of transfers | Connect each transfer to an verified identity |
| Reducing risks associated with licit activities | Minimizing risks on crypto networks |
https://business-crypto.org/wp-content/uploads/2025/01/Illustration-reprysentant-la-ryregulation-MiCA-et-TFR.webp
Major changes made by the MiCA law for cryptos
The MiCA law introduces significant changes in the crypto ecosystem, notably with the TFR (Token Financial Regulation). These regulations, whether complementary or principal, are not intended to destroy the crypto ecosystem but rather to structure the market and protect users. It is important not to give in to fear or panic, as these changes are essential for the adoption of cryptos. Regulated platforms will accompany users in this transition. For example, if the USDT is removed from a centralized platform, the USDC, although less used, is a regulated and secure alternative.
Transitional period and time limits
A transitional period of 18 months, until June 2026, is granted to all registered or licensed PSAN service providers. This period will continue to provide secure services to the French public. This transition is crucial for a smooth adoption of the new regulations. By 30 December 2024, certain measures will be put in place to regulate this transition.
Impact on users and platforms
Crypto users, whether on centralized platforms or decentralized walls, will be directly impacted by these changes. Centralised platforms will need to adapt quickly to offer solutions in line with the new regulation. Users will have to be vigilant and be informed about the new rules to protect their assets. This regulation is necessary to ensure a massive and secure adoption of cryptos.
| Element | Description |
|---|---|
| TFR (Token Financial Regulation) | Main regulation introduced by the MiCA Act |
| Transitional period | 18 months until June 2026 |
| Impact on users | Adjustment necessary to protect assets |
| Impact on platforms | Offer of solutions in line with the new regulation |
FAQ
What is MiCA Regulation?
What is MiCA Regulation?
MiCA, or Markets in Crypto Assets, is a European regulation that came into force on 1 January 2025. It aims to regulate the cryptocurrency market by imposing strict rules to ensure transparency, investor security and the limitation of systemic risks within the EU.
What are the objectives of MiCA regulation?
What are the objectives of MiCA regulation?
The objectives of MiCA regulation are to ensure transparency and investor safety, to limit systemic risks, and to create a more regulated and respected cryptocurrency market.
What are the implications of MiCA for cryptocurrency users?
What are the implications of MiCA for cryptocurrency users?
MiCA has direct implications for cryptocurrency users, including compliance with the new rules for transactions between centralized platforms and the need to ensure that the stablecoins used comply with MiCA requirements.
What is the Transfer of Funds Regulation?
What is the Transfer of Funds Regulation?
The TFR, or Transfer of Funds Regulation, is a European regulation aimed at regulating cryptocurrency transfers. Its main objectives are to combat money laundering and terrorist financing, to ensure that each transfer can be linked to an verified identity, and to reduce the risks associated with licit activities on crypto networks.
What are the practical implications of TFR for users?
What are the practical implications of TFR for users?
The TFR requires that for each transfer between regulated platforms, the sender and recipient data (name and address) be shared. For transactions over 1000 €, it will be necessary to prove ownership of the personal portfolio.
What is the transitional period granted by MiCA?
What is the transitional period granted by MiCA?
MiCA grants a transitional period of 18 months, until June 2026, to all PSAN (Digital Assets Services Providers) registered or licensed to adapt to the new regulations.
What is the impact of MiCA on cryptocurrency platforms?
What is the impact of MiCA on cryptocurrency platforms?
Cryptocurrency platforms will need to adapt quickly to deliver solutions in line with the new MiCA regulation. They will also need to store and secure user information to make it available to the competent authorities in the event of an investigation or control.