MiCA is shaping the future of Europe’s crypto

Europe’s crypto market is evolving rapidly, driven by the Markets in Crypto-Assets Regulation (MiCA), which came into effect on 31 December 2024. MiCA introduces the first harmonised EU-wide regulatory framework for crypto-asset services, bringing clarity, reducing fragmentation, and boosting investor protection.

Filling gaps in existing financial laws, MiCA enhances financial stability and market integrity. It sets out rules for authorisation, supervision, and disclosure for crypto service providers, stablecoins, and token issuers, aiming to establish a single “European passport” for crypto businesses operating across the EU.

For financial institutions, MiCA is more than compliance, it unlocks access to a fast-growing market with an estimated potential to reach €3.7 trillion over the coming years. As of 1 September 2025, over 56 Crypto Asset Service Providers (CASPs) are authorised across 11 member states. The regulation supports scalable, cross-border operations, allowing firms to leverage a single license for the EU/EEA market.

Forward-thinking institutions are embracing MiCA as a strategic opportunity to diversify services, capture rising demand for custody, trading, and advisory offerings, and position themselves at the forefront of the hybrid traditional-digital finance market. MiCA also incorporates strong anti-money laundering and investor protection standards, which foster trust in crypto markets.

• Market growth and diversification through rising demand for regulated crypto services.
• Leveraging existing compliance frameworks aligned with MiCA standards.
• Accelerated EU market entry via Article 60 (MiCA) streamlined notification procedures.
• Cross-border scalability supported by a harmonised EU-wide authorisation.
• Future-ready positioning in a hybrid traditional-digital finance ecosystem.

• Complexity? MiCA consolidates fragmented national laws into a uniform framework, thus simplifying compliance processes.
• Alignment with existing rules? MiCA complements existing financial regulations, such as MiFID II and AML directives, enabling firms to leverage their current compliance infrastructure.
• Market maturity? Institutional adoption and demand for regulated crypto services are growing, with MiCA laying a secure foundation for innovation and sustainable growth.

• At KPMG in Cyprus, we support firms at every stage of the MiCA journey:
• Strategic assessment → Business model fit & compliance gap analysis.
• Implementation roadmap → Step-by-step guidance through authorisation, regulatory obligations, and operational setup.
• Market entry support → Enabling cross-border scaling and effective regulator engagement.