What is MiCA?
According to the European Securities and Markets Authority (ESMA), the “Markets in Crypto-Assets Regulation (MiCA) institutes uniform EU market rules for crypto-assets. The regulation covers crypto-assets that are not currently regulated by existing financial services legislation.
Key provisions for those issuing and trading crypto-assets (including asset-reference tokens and e-money tokens) cover transparency, disclosure, authorization and supervision of transactions.
The new legal framework supports market integrity and financial stability by regulating public offers of crypto-assets and by ensuring consumers are better informed about their associated risks.”
Purpose of MiCA: Regulation of Crypto-Assets
MiCA was introduced as legislation surrounding crypto-assets, including tokens, that serve to regulate transactions. It falls under the ESMA’s push towards creating comprehensive legal frameworks as a uniform rulebook that recognizes the gap in the market: that cryptocurrency has not reached its full regulation.
It allows for authorities and governing bodies within the EU to monitor compliance under a “common supervisory approach” that “ensures a level playing field across the internal market”
A report published by the European Banking Authority (EBA) furthers that MiCA is in effect to enforce “proper functioning of markets in crypto-assets, market integrity and financial stability in the EU, and to guarantee a high standard of protection for token holders
ESMA Statement on Non-MiCA Compliant Stablecoins
On October 8, ESMA argued that non-MiCA compliant stablecoins should stop providing services to EU customers. With this, affected services will be terminated as soon as possible, and the deadline will be set within three months from the publication of the opinion papers (until January 8, 2027). However, this is not yet a legally binding statement.
Rather, ESMA is urging authorities within the EU to enforce the sentiment it expressed. To wit, the shut-down procedures for non-compliant stablecoins: such as liquidation and withdrawal.
Developments: Ceased Handling of USDT, Market Sentiments
Revolut, Europe’s largest fintech company, ceased its handling of USDT on August 31, 2026, because of its non-compliance with MiCA. In addition to Revolut, Coinbase, Kraken, OKX, and Crypto.com have already delisted USDT. Other platforms could follow the same direction as Revolut, as sanctions and penalties for non-compliance would endanger customers and exchanges.
“After the introduction of MiCA, 80% of cryptocurrency-related companies will likely not survive,” said the CEO of OKX Europe.
