Crypto-Asset Regulation (MiCA): New EU Guarantees for Digital Markets

The Markets in Crypto-Assets Regulation (Regulation (EU) 2023/1114 of the European Parliament and of the Council, hereinafter: MiCA) has become fully applicable across all European Union Member States by 2026. Titles III and IV (rules on asset-referenced tokens and e-money tokens) have applied since 30 June 2024, while the remaining provisions – including Title V governing crypto-asset service providers – have been in force since 30 December 2024. MiCA has thereby established a unified, directly applicable legislative framework that has eliminated the regulatory fragmentation between Member States and integrated the crypto market into the EU financial supervisory system.

Licensing of Crypto-Asset Service Providers (CASPs)

The Licensing Requirement

Under MiCA Title V (Articles 59–74), crypto-asset services – including custody and administration of crypto-assets, operation of trading platforms, exchange services, order execution, advisory services, and portfolio management – may only be provided by legal entities authorised by the competent authority of their home Member State. In Hungary, the competent authority is the Magyar Nemzeti Bank (MNB – Hungarian National Bank).

During the licensing process, the service provider must demonstrate adequate capital reserves (Article 67), appropriate organisational structure, cybersecurity and ICT risk management frameworks – in this latter regard, MiCA is closely linked to the Digital Operational Resilience Act (DORA, Regulation (EU) 2022/2554) – as well as complaint handling procedures and conflict of interest policies.

Expiry of Transitional Provisions

Particular attention must be paid to the transitional provision under Article 143 of MiCA: service providers that were lawfully providing crypto-asset services under national law prior to the regulation’s application could continue to operate without a MiCA licence until 30 December 2025 – or, at the Member State’s discretion, until 30 June 2026 at the latest. As of March 2026, we are approaching the end of this transitional period, and every crypto-asset service provider must either already hold a MiCA licence or cease its activities.

EU Passport (Passporting)

One of MiCA’s most significant achievements is the EU passport (Article 65) arising from the unified licensing system: a CASP authorised in one Member State may provide its services across the entire European Union and EEA without undergoing separate licensing procedures in each individual Member State. This creates a framework for cross-border crypto-asset trading comparable to the single internal market.

The White Paper and Issuer Liability

Disclosure Obligations

Under Article 6 of MiCA, the public offering of crypto-assets or their admission to trading on a platform requires the issuer to prepare and publish a crypto-asset white paper. The white paper must contain all material information relating to the issuer, the project, the technology used, the associated risks, and the rights attached to the token, presented in a comprehensible, accurate, and non-misleading manner.

The Issuer’s Liability for Damages

Article 15 of MiCA establishes direct civil liability for information contained in the white paper: if the published document was incomplete, inaccurate, or misleading, and an investor suffered loss based on an investment decision made on that basis, the issuer – as well as the offeror and the person seeking admission to trading – is liable for damages. This provision creates a level of investor protection comparable to that governing capital market prospectuses (Prospectus Regulation, (EU) 2017/1129).

In the context of Hungarian law, enforcement of this liability proceeds in accordance with the general damages rules under Section 6:519 of the Civil Code (Ptk.), with the primacy of MiCA provisions.

Stablecoins: Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs)

The Precise Distinction

Tokens commonly referred to as “stablecoins” fall into two distinct categories under the MiCA framework, each subject to different rules:

• Asset-Referenced Tokens (ARTs – Title III, Articles 16–47): crypto-assets that aim to maintain a stable value by referencing multiple assets – fiat currencies, commodities, or other crypto-assets. Their issuance requires authorisation from the competent authority, and the issuer has ongoing reserve asset management obligations (Article 36).
• E-Money Tokens (EMTs – Title IV, Articles 48–58): crypto-assets that purport to maintain a stable value by referencing a single fiat currency. Only credit institutions or electronic money institutions may issue EMTs, and the issuer must maintain a reserve of liquid, low-risk assets equal to the nominal value of tokens in circulation (Article 52).

Reserve Requirements and Prior Systemic Risks

MiCA’s reserve rules can be understood as a direct response to the 2022 TerraUSD/LUNA collapse, which caused billions of dollars in investor losses worldwide. The purpose of the reserve requirement is to ensure that the token issuer is capable of redeeming tokens at any given time. It is important to emphasise that the reserve rules significantly reduce the risk of algorithmic collapse but do not eliminate all market risks – investors must continue to consider the inherent volatility of crypto-assets.

Significant Tokens and EBA Supervision

Within the categories of ARTs and EMTs, significant tokens (Articles 43–44 for ARTs, Articles 56–57 for EMTs) represent an additional regulatory tier: where a token’s market capitalisation, transaction volume, or cross-border usage exceeds specified thresholds, supervisory competence transfers from the national authority to the European Banking Authority (EBA), and the issuer becomes subject to stricter capital and reserve requirements.

Prohibition of Market Abuse (Title VI)

MiCA Title VI (Articles 86–92) applies the market abuse prohibition known from traditional capital market regulation to the crypto-asset market. The regulation prohibits:

• insider dealing (Article 89) – trading or attempting to trade crypto-assets on the basis of inside information;
• unlawful disclosure of inside information (Article 90);
• market manipulation (Article 91) – including orders designed to artificially influence price movements, wash trading, and pump-and-dump schemes.

This regulatory layer was previously entirely absent from the crypto market. Sanctioning of market abuse remains within Member State competence: Member States are obliged to introduce effective, proportionate, and dissuasive administrative sanctions and measures; in addition, criminal sanctions may be applied in the most serious cases under national law.

MiCA and the Hungarian Legal System

As a directly applicable EU regulation, MiCA does not require transposition into Hungarian law; however, national implementing legislation is necessary in certain areas – particularly the designation of the competent authority, determination of sanctions, and application of transitional provisions. The MNB, as the designated competent authority, plays a central role in the enforcement of this regulation.

MiCA does not affect the general contractual and damages rules of the Hungarian Civil Code (Ptk.), which remain applicable in crypto-asset related disputes – particularly in investor damage claims. Similarly, the chapters on economic crimes in the Criminal Code (Act C of 2012) – including fraud, breach of fiduciary duty, and money laundering – remain applicable to offences committed using crypto-assets.

Limitations of MiCA and Regulatory Gaps

MiCA’s scope does not extend to all digital assets:

• Non-fungible tokens (NFTs): under Article 2(3) of MiCA, unique and non-fungible crypto-assets are, as a general rule, excluded from the regulation’s scope. However, if an NFT series is in fact a series of fungible tokens, MiCA may apply – this must be assessed on a case-by-case basis.
• Decentralised finance (DeFi): MiCA does not specifically regulate fully decentralised protocols, although the Commission will examine this question in its review of the regulation.
• Financial instruments under MiFID II: under Article 2(4) of MiCA, where a crypto-asset qualifies as a financial instrument within the meaning of MiFID II, traditional financial regulation applies.

Practical Summary for Investors and Service Providers

1. Verify the provider’s licence: in 2026, crypto-asset services may only be provided by a MiCA-licensed CASP; every authorised provider can be found in the MNB’s register.
2. Request and read the white paper: issuers are required to publish a white paper for every new token offering – its absence or misleading content may form the basis for a damages claim.
3. Know the stablecoin type: ARTs and EMTs have different underlying collateral and regulatory frameworks; before making an investment decision, examine which category the token falls into.
4. Be aware of market abuse rules: insider dealing and market manipulation are sanctioned on crypto markets as well; participation in pump-and-dump schemes carries legal consequences.
5. For cross-border services, verify the EU passport: if a provider offers services in Hungary from another Member State, it must do so through the passporting system; without this, the activity is unlawful.