Which kind of crypto-assets MiCA regulation is about ?

BECTRA
Feb 2
3 min read

🚀 MiCA and the 3 Categories of Crypto-Assets:

One of the major advancements of #MiCA (Markets in Crypto-Assets) is the classification of crypto-assets into three main categories. This allows for better regulation and greater transparency for both investors and crypto businesses.

Below are the three main categories of crypto-assets as defined by MiCA:

💰 1. Electronic Money Tokens (EMT)

Electronic Money Tokens (EMT) are crypto-assets pegged to a fiat currency to maintain a stable value.

📌 Key Features of EMTs:

✔ Their value is linked to a single official currency (e.g., the euro, dollar).

✔ They are issued by authorized entities that ensure their stability.

✔ They must comply with strict liquidity and reserve management rules under MiCA.

🔹 Example: USDT (Tether), which maintains its value relative to the US dollar.

📢 Regulatory Objective: Ensure that fiat-backed stablecoins do not threaten financial stability and that they maintain sufficient reserves.

🏦 2. Asset-Referenced Tokens (ART)

Asset-referenced tokens (ART) stabilize their value by being backed by a tangible asset or a basket of assets. Unlike EMTs, they are not directly linked to a fiat currency.

📌 Key Features of ARTs:

✔ Their value is pegged to real assets (e.g., commodities, precious metals).

✔ They can be backed by a diversified basket of assets to mitigate risks.

✔ They are subject to enhanced transparency and reserve requirements under MiCA.

🔹 Examples:

✔ A gold-backed stablecoin.

✔ A token pegged to a basket of crypto-assets.

📢 Regulatory Objective: Protect investors by eliminating market manipulation risks and ensuring full transparency over the reserves backing the token’s value.

🚀 3. Crypto-Assets Other Than Stablecoins

This category includes all other crypto-assets that do not fall under EMTs or ARTs.

📌 Key Features:

✔ Includes crypto-assets not pegged to a specific asset.

✔ Covers utility tokens and certain native blockchain cryptocurrencies.

✔ Not classified as regulated payment instruments under MiCA.

🔹 Examples:

✔ Bitcoin (BTC), which is not backed by any specific asset.

✔ Ethereum (ETH), mainly used for smart contracts and Web3 applications.

✔ Utility tokens like BNB or UNI (Uniswap), which provide access to platform-specific services.

📢 Regulatory Objective: Establish clear transparency rules and protect investors, while allowing innovation in the crypto space.

🔎 Why Is MiCA's Classification Crucial?

MiCA’s classification clarifies the legal framework for crypto-assets in Europe and aims to:

✅ Enhance transparency and security for investors.

✅ Prevent systemic risks related to large-scale stablecoins.

✅ Standardize regulations across the EU to facilitate crypto business expansion.

✅ Lay the foundation for broader adoption of regulated crypto-assets.

With MiCA, every crypto-asset is clearly identified and subject to specific regulatory obligations, ensuring better user protection and greater market confidence.