MiCA

What it means

MiCA is the EU regulation on markets in crypto-assets. For the first time it provides uniform rules on issuing crypto-assets that are not classic financial instruments, on stablecoins pegged to a currency or other assets, and on service providers such as exchanges, trading platforms and custody of virtual currencies.

The regulation applies directly in all member states and has applied in full since the end of 2024. A service provider needs authorisation from the supervisory authority in its home country, in Slovakia the National Bank of Slovakia, and with it can operate across the EU without further licences.

An issuer of crypto-assets must publish a white paper describing the project, its risks and buyers’ rights, and is liable for its accuracy. Stablecoins are subject to stricter rules on reserves and redemption. The regime also includes rules against market abuse in crypto-assets.

How it works in practice

For an ordinary company that merely holds crypto or accepts it as payment, MiCA creates no duty to obtain authorisation. It affects the company indirectly, though: it deals with providers who must identify the sender and recipient of transfers and apply KYC and AML rules.

We warn clients who want to provide crypto services that besides authorisation they need internal controls, conflict-of-interest management, safeguarding of client assets and IT resilience under DORA. The application review also covers the beneficial owner and the competence of management.

MiCA does not change taxation. An individual’s income from selling crypto is taxed as other income under the income tax act, and in a company it is ordinary income. From 2026, however, providers report their clients’ transactions to tax authorities under the DAC8 rules.

What to watch out for

Services offered without authorisation are illegal in the EU, and their clients lack the protection MiCA provides. Before entrusting funds it is worth checking that the provider is on the supervisor’s register, and running regular sanctions screening of counterparties.

Transaction disclosure rules and DAC8 mean the tax authority will have detailed data on crypto-asset dealings. Anyone who has not declared them in the past should consider a supplementary tax return before the tax office gets in touch itself.