A single market worth protecting: Getting the MiCA review right

When the Markets in Crypto Assets Regulation (MiCA) came into force, it did something that had eluded the digital asset sector in Europe for years: it created a single, coherent rulebook.

For the first time, a crypto asset service provider (CASP) authorized in one Member State can passport its services across the European Union and European Economic Area, and clients across the bloc can choose among a growing field of licensed, supervised providers. That is a genuine achievement, and one the industry should not take for granted.

As the consultation on MiCA’s review closes, the focus should now be on calibration: keeping what works, and being honest about where the compliance burden has grown faster than the risks it is meant to address.

The value of a unified market

Start with what MiCA got right. Before it, a firm wanting to operate across Europe faced a patchwork of national regimes, divergent registration requirements, and, in some markets, no bespoke regime at all.

A unified market changes the economics of building a serious business. It lets providers invest in one authorization and one compliance architecture rather than 30, and it gives customers something they genuinely benefit from: choice among multiple providers competing on quality, price, service and security, all held to a common standard.