What is MiCA?
MiCA, formally Regulation (EU) 2023/1114, is the European Union's first comprehensive legal framework for crypto-assets. It covers stablecoin issuance, crypto-asset service provider licensing, and investor protection across all 27 EU member states. Before MiCA, crypto regulation varied by country. MiCA replaces that patchwork with one rulebook and a passport that lets authorized entities operate across the entire EU.
Stablecoin rules applied from June 30, 2024. Full CASP rules applied from December 30, 2024. The transitional period for existing providers ends July 1, 2026.
How does MiCA classify stablecoins?
MiCA does not use the word "stablecoin." It defines two regulated categories that cover what the market calls stablecoins. They differ in what they reference and who can issue them.
Any EMT or ART that exceeds EUR 200 million in daily EU payment volume may be designated "significant" by the European Banking Authority. This triggers direct EBA oversight rather than national regulation.
What happened to USDT under MiCA?
Tether did not obtain MiCA authorization as an EMT issuer. As a result, USDT was pushed off EU-regulated venues throughout 2024 and 2025. Coinbase delisted USDT for EEA users in December 2024. Other regulated exchanges followed.
USDC took a different path. Circle registered in France. EURC, Circle's EUR stablecoin, is a fully authorized MiCA-compliant EMT. This is why EURC has grown in relevance for EU stablecoin payment flows.
What is a CASP under MiCA?
A Crypto-Asset Service Provider (CASP) is any entity providing regulated crypto-asset services in the EU. MiCA requires CASP authorization from a national competent authority. Once authorized, the license passports across all 27 member states. Five categories of activity require authorization:
- Custody and administration of crypto-assets on behalf of clients
- Operation of a crypto-asset trading platform
- Exchange of crypto-assets for fiat currency or other crypto-assets
- Execution of orders and portfolio management services
- Transfer services for crypto-assets on behalf of clients
Capital requirements apply to each category and scale with the type of service.
How does MiCA interact with the Travel Rule?
MiCA aligns with the EU's AML regime. Under the Transfer of Funds Regulation (TFR), CASPs must share originator and beneficiary information on all crypto transfers with no minimum threshold. A CASP can be fully MiCA-authorized and still face enforcement for Travel Rule non-compliance. The two frameworks are separate obligations that run in parallel.
How is Due authorized under MiCA?
Due is authorized by Spain's CNMV as a Crypto-Asset Service Provider, passported across 30 EEA markets. The authorization covers:
- Exchange of crypto-assets for funds: Converting between stablecoins and euros for deposits, payouts, and settlement
- Exchange of crypto-assets for other crypto-assets: Swapping between USDC and EURC
It does not cover custody, transfer services, or operating a trading platform. Those remain separate CASP categories under MiCA, each requiring its own authorization. Building on Due does not make a platform MiCA-compliant on its own; a platform's own regulated activities remain its own responsibility to license.
For platforms still routing conversion through an unauthorized provider, such as the USDT exposure covered earlier in this entry, Due connects existing deposit, payout, and conversion flows to authorized infrastructure through one API, keeping the customer-facing experience intact while the regulated layer underneath changes.
