MiCAR: Markets in Crypto-Assets Regulation
Understanding EU's regulatory framework for crypto exchanges
The Markets in Crypto-Assets Regulation (MiCAR) is the European Union's comprehensive regulatory framework for crypto-asset service providers. Discover which exchanges are fully licensed and what it means for your trading.
What is MiCAR?
MiCAR (Markets in Crypto-Assets Regulation) is the EU's groundbreaking regulatory framework that came into full effect on December 30, 2024. It establishes harmonized rules for crypto-asset service providers (CASPs) across all EU member states.
Key aspects of MiCAR
EU-Wide Passport
Licensed providers can operate across all 30 EEA countries with a single authorization
Consumer Protection
Mandatory disclosures, custody requirements, and operational safeguards protect investors
Market Integrity
Rules against market abuse, insider trading, and manipulation ensure fair markets
Regulatory Clarity
Clear legal framework provides certainty for both providers and users
Why MiCAR matters when choosing an exchange
MiCAR authorization is not just bureaucracy—it's about your money's safety. Licensed exchanges must meet strict requirements that directly affect you as a trader.
MiCAR Implementation Timeline
June 2023
MiCAR Published
Regulation (EU) 2023/1114 published in Official Journal
July 2023
Entry into Force
MiCAR enters into force 20 days after publication
December 30, 2024
Full Application
All MiCAR provisions become directly applicable across EU
July 1, 2026
Transitional End
Deadline for existing providers to obtain MiCAR authorization or cease operations
What MiCAR Actually Requires from Exchanges
These are mandatory obligations, not optional features
Segregated Customer Funds
Minimum Capital Requirements
Mandatory Disclosures
Custody & Key Management
Market Abuse Surveillance
Conflict of Interest Management
Business Continuity Plans
Annual Audits & Reporting
Understanding MiCAR License Types
Not all "licenses" are equal. Here's what different regulatory statuses actually mean:
Full MiCAR CASP License
Exchange has completed the full authorization process and meets all MiCAR requirements
What you get:
- •Full segregation of customer funds
- •Professional custody with insurance
- •EU-wide passporting (can serve all 30 EEA countries)
- •Mandatory disclosures and white paper
- •Active regulatory supervision
Examples: Kraken, Coinbase, Bitstamp, Crypto.com
Transitional Period (Pre-MiCAR Registration)
Exchange was operating before MiCAR and has temporary permission to continue while applying for full license
What you get:
- •Some consumer protections under old national regimes (varies by country)
- •Must meet AML/KYC requirements
- •Limited time remaining (deadline: July 1, 2026)
⏰ Must obtain full MiCAR license by July 1, 2026 or stop operating in EU
Risk: If they don't get licensed by deadline, you'll need to move funds or lose EU access
Examples: Binance (France DASP transitional)
No MiCAR License
Exchange either doesn't serve EU customers or operates without EU authorization
What you get:
- •No EU consumer protection
- •Funds not segregated under EU law
- •No EU regulatory supervision
- •May exit EU market at any time
Risk: If something goes wrong, you have limited recourse under EU law
Examples: Bitfinex (no EU presence)
What This Means for Your Trading
Practical differences you'll actually notice
Exchange Goes Bankrupt
✓ With MiCAR License:
Your funds are segregated and you're a priority creditor. Recovery process is clear.
✗ Without MiCAR:
Your crypto may be frozen indefinitely as part of bankruptcy estate. Lengthy court battles.
Real example: FTX customers still waiting; segregated funds could have prevented this
Withdrawal Freeze During Crisis
✓ With MiCAR License:
Exchange must notify regulator immediately. Supervisor can force orderly wind-down.
✗ Without MiCAR:
No regulatory oversight. Exchange can freeze indefinitely with no accountability.
Real example: Celsius froze withdrawals with no warning and no regulator to intervene
Fee Changes or Hidden Costs
✓ With MiCAR License:
All fee changes must be disclosed 30 days in advance. Can't retroactively change terms.
✗ Without MiCAR:
Fees can change without notice. Retroactive terms changes are common.
Real example: Common complaint: spread widening during volatile markets with no disclosure
Security Breach / Hack
✓ With MiCAR License:
Insurance or guarantee must cover losses. Clear incident reporting obligations.
✗ Without MiCAR:
"Sorry for your loss" is the standard response. No legal obligation to make you whole.
Real example: Mt. Gox hack: customers lost everything, no insurance, no recovery
Dispute Resolution
✓ With MiCAR License:
Can complain to national regulator who has enforcement powers. Clear arbitration path.
✗ Without MiCAR:
Customer service is your only option. Terms usually specify offshore jurisdiction.
Real example: Try suing an exchange based in Seychelles from Europe—good luck
Exchange Licensing Status
See which major crypto exchanges have obtained MiCAR authorization
Last updated: January 2026
| Exchange | MiCAR Status | Regulator | Jurisdiction |
|---|---|---|---|
| BISON | MiCAR Licensed | BaFinFederal Financial Supervisory Authority | Germany |
| Bitstamp | MiCAR Licensed | CSSFCommission de Surveillance du Secteur Financier | Luxembourg |
| Bitvavo | MiCAR Licensed | AFMAutoriteit Financiële Markten | Netherlands |
| BSDEX | MiCAR Licensed | BaFinFederal Financial Supervisory Authority | Germany |
| Bybit EU | MiCAR Licensed | — | — |
| Coinbase Advanced | MiCAR Licensed | — | — |
| Crypto.com Exchange | MiCAR Licensed | MFSAMalta Financial Services Authority | European Union |
| Gemini | MiCAR Licensed | MFSAMalta Financial Services Authority | European Union |
| Gemini ActiveTrader | MiCAR Licensed | MFSAMalta Financial Services Authority | European Union |
| Kraken | MiCAR Licensed | — | — |
| Kraken Pro | MiCAR Licensed | — | — |
| KuCoin EU | MiCAR Licensed | — | — |
| OKX | MiCAR Licensed | — | — |
| Robinhood EU | MiCAR Licensed | — | — |
| TradeRepublic | MiCAR Licensed | — | — |
| Binance | Transitional Period | AMFAutorité des marchés financiers | France |
| WhiteBIT | Transitional Period | — | — |
| Bitfinex | No MiCAR License | — | — |
| OneTrading FAST | No MiCAR License | — | — |
MiCAR Licensed
Full MiCAR authorization - EU-wide passport
Transitional Period
Operating under pre-MiCAR regime - limited time remaining
No MiCAR License
Not licensed under MiCAR or not operating in EU
Important Notice
This information is for educational purposes only. MiCAR licensing status is subject to change. Always verify current regulatory status directly with the exchange or relevant regulator. Not investment advice.