The European Union’s new MiCA rules on cryptoassets suggest that cryptocurrency exchanges in the EU must exclude from listing stablecoins that have not received regulatory approval by December 30, 2024. Such cryptocurrencies could include Tether’s USDT – the company has not received local authorization. MiCA requires that all stablecoins listed on cryptocurrency exchanges be issued by issuers that have obtained a special license. Circle, Tether’s closest competitor, received such a license in July. The total capitalization of stablecoins is approximately $200 billion, according to data as of December 20. Of that, USDT accounts for $140 billion and Circle’s USDC accounts for $42 billion. The Tether token leads all cryptocurrencies by a wide margin in terms of trading volume. Over the past 24 hours, USDT has accounted for $218 billion of the market’s total trading volume of $385 billion. In comparison, Bitcoin accounted for $110 billion and USDC for $15 billion.

What is Tether’s USDT. What you need to know about the main stablecoin

In November 2024, Tether decided to abandon its EURT steiblcoin, which is pegged to the euro exchange rate, and invest in StablR, a European company that issues such assets. StablR is an issuer of EURR and USDR and received the necessary license in Malta this summer to operate in Europe. Shortly thereafter, Tether announced that it will issue MiCA-compliant EURQ and USDQ stablecoins in partnership with Quantoz Payments. The tokens will be launched on Hadron, Tether’s platform for launching stablecoins and other tokenized assets. At the same time, industry participants believe that USDT’s delisting puts Europe at risk of missing out on the cryptocurrency boom associated with the election of U.S. President Donald Trump. Cryptocurrency executives warn that these MiCA rules could lead to an outflow of liquidity from the markets without meeting EU targets, making the region less attractive to crypto traders at a critical time. According to industry participants, the delisting of Tether “limits” the Europeans themselves, as USDT is the most liquid stablecoin to date, the report said. Experts note that most cryptoassets trade paired with USDT, so investors who have to exit a USDT pair to buy the same asset to trade paired with another stablecoin will face losses.

In February 2025, Coinbase announced the removal of the Tether (USDT) steelcoin from the list of available assets for its European customers. This decision is due to the need to ensure compliance with the European Union’s Markets in Cryptoassets Regulation (MiCA), which comes into effect in 2025. MiCA establishes common rules for cryptoasset issuers and cryptoasset-related service providers to protect investors and ensure financial stability. The regulations will require stablecoin issuers to maintain adequate reserves and transparency, as well as adhere to strict risk management requirements. Coinbase expressed doubts about Tether’s ability to meet the new standards set by MiCA, which was the reason for USDT’s delisting on the European market. The company emphasized its commitment to regulatory compliance and the safety of its customers. Coinbase users in Europe have been notified to convert their USDT to other supported stablecoins or cryptocurrencies before a certain deadline, after which USDT transactions will no longer be available. This development highlights the importance of cryptocurrency market participants adapting to new regulatory requirements aimed at increasing the transparency and reliability of financial instruments in the European Union.

In March 2025, Binance will also delist non-MiCA compliant stablecoin trading pairs for EEA users and USDT is among the list of excluded assets. Following the latest guidance from EU authorities regarding stackablecoins, the world’s largest cryptocurrency exchange is making changes to the availability of non-MiCA compliant stackablecoins in the EEA to meet regulatory requirements. The affected assets are USDT, FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC and PAXG. Binance will stop providing services for unauthorised Spot stablecoin trading pairs on 31 March 2025.

Why it happened?

USDT (Tether) is not banned in Europe as a whole, but its delisting from some platforms such as Coinbase and Binance is due to the requirements of the Markets in Cryptoassets Regulation (MiCA), which comes into force in 2024-2025.

The main reasons for the exclusion of USDT from trading platforms in the EU are:

1. Non-compliance with MiCA requirements

MiCA imposes strict requirements on issuers of stablecoins, including:

• Having transparent reserves that fully cover liabilities to holders.
• An obligation to hold reserves in liquid and low-risk assets.
• Accountability to EU regulators, including the obligation to obtain a licence to issue electronic money (if a stablecoin is classified as electronic money – e-money token).

USDT problem: Tether does not fully disclose its reserves and their composition, making it potentially non-compliant with the new standards.

2. Financial stability risk

• MiCA requires issuers of systemically important stablecoins (large in volume) to ensure strict liquidity controls.
• Tether is the largest stablecoin by market capitalisation and its possible loss of liquidity could pose risks to the EU financial market.

3. Doubts about the transparency of reserves

• Tether Limited does not fully disclose audited reserve reports.
• The company has previously been fined by US regulators (CFTC and SEC) for making false statements about full USDT reserves.

4. Competition with regulated stablecoins

• MiCA-compliant stablecoins such as Circle (USDC) or Euro-stablecoins issued under an e-money licence may be preferred in the EU.
• European regulators may prioritise steblecoins that comply with EU rules.

5. Stringent requirements for issuers

• Under MiCA, companies issuing steiblcoins must be registered in the EU and comply with strict AML (anti-money laundering) regulations.
• Tether is registered outside the EU (in the British Virgin Islands), making it more difficult to regulate.

USDT is not banned in the EU, but it may not be compliant with the new MiCA requirements, causing crypto exchanges in Europe to delist it to avoid problems with regulators. This is not a ban, but rather regulatory pressure forcing platforms to move to more transparent stablecoins.

What alternatives to USDT exist?

Despite the delisting of USDT from some platforms in Europe, the steblecoin market will remain in demand. The main alternatives to USDT that are MiCA compliant and have more transparent reserves include:

1. USD Coin (USDC) is the main competitor to USDT

Issuer: Circle (USA)

Features:

• Fully backed by USD reserves held in US banks.
• Regularly audited and publishes reports on reserves.
• Backed by major exchanges and financial institutions (e.g. BlackRock).
• Likely to become the main steiblcoin in Europe, as it is better compliant with MiCA requirements.

2. TrueUSD (TUSD)

Issuer: TrustToken

Features:

• Undergoes regular audits (reserves are confirmed by companies like Armanino).
• Supported by many exchanges, including Binance.
• EU regulators may consider it as a more transparent alternative to USDT.

3. EUR-backed stablecoins ( EUR-stablecoins ).

MiCA is not only focused on USD-backed stackablecoins, but also on EUR-backed stackablecoins. Popular variants:

• EUROC (Euro Coin) from Circle – an analogue of USDC, but pegged to the euro.
• Stasis EURO (EURS) – one of the oldest euro-backed stablecoins.
• Tether EURt (EURT) – however, like USDT, may face regulatory issues.

4. Binance USD (BUSD) – limited application

Issuer: Paxos (under NYDFS licence, USA)

• Binance has abandoned the development of BUSD, but Paxos may launch a new stablecoin under a different brand.
• Its use is limited in Europe.

5. DAI (Decentralised Stablecoin)

Issuer: MakerDAO

Features:

• Backed by a basket of assets, including USDC and ETH.
• More decentralised but still reliant on centralised assets.
• Could remain a key alternative for DeFi applications in Europe.

Which stablecoin will become mainstream in Europe instead of USDT?

USDC is likely to be the main USDT steiblcoin in the regulated EU market as it:

• Passes audits and complies with regulations.
• Is backed by liquid assets and publishes reports.
• Used by major financial players.

At the same time, Euro-stablecoins (EUROC, EURS) will gain traction because of the support of EU regulators.

If Tether does not adapt to MiCA, its place in Europe will be taken by more transparent and regulatory compliant stablecoins.

With comprehensive MiCA (Markets for Crypto Assets) regulations coming into effect in Europe this year, it is believed that these regulations will prevent Tether from operating in the region.

As of early 2025, Tether is the world’s largest stable USD coin, in the first quarter of this year, it made a record profit of $4.52 billion. However, Tether’s market share is gradually declining and currently stands at around 69%. In contrast, USDC Circle, a regulated alternative to USDT, has increased its market share to 11 %.

In a related development, Circle, following the success of its dollar-based steblicoin (USDC), has launched a new euro-based steblicoin, EURC. Circle EURC is designed to fill an important gap in the market as a regulated euro-based stablecoin. With the possibility of large USD stablecoins such as Tether leaving the European market due to MiCA regulation, we can expect EURC to play an important role in Europe.

While these developments are taking place, it is important to remember that USD stablecoins have always dominated the world, and other currencies have not shown much presence in this area. If the market moves in this direction, stable coins like EURC could gain popularity. However, if these regulatory changes isolate Europe and take it in a completely different direction, the continent could be left behind in the cryptocurrency world.

Why USDT delisted in Europe?

The main reasons why Tether is not compliant with European regulations are due to its failure to comply with the transparency and oversight obligations imposed by MiCA rules. MiCA requires issuers of stablecoins to maintain adequate reserves and report them on a regular basis. Tether has historically had transparency issues with reserve assets, which may make it difficult to meet these requirements. In addition, MiCA imposes limits on the volume of transactions involving stablecoins, which could create systemic risk. Due to the high transaction volume, USDT may be subject to stricter scrutiny. While Tether has yet to make an official announcement, there are numerous reports that the company is considering alternatives in response to regulation in Europe.

All of these developments come against the backdrop of some major cryptocurrency exchanges beginning to restrict USDT trading pairs before MiCA regulations take full effect. For example, the OKX exchange has imposed restrictions on USDT trading pairs, and other major exchanges such as Kraken are also considering a similar decision. One of the most high-profile news regarding USDT trading pairs was the recent announcement by Coinbase exchange. Coinbase is preparing to delist stablecoins that are not MiCA compliant, such as USDT, around December.

On 1 January 2025, a ban on the Tether (USDT) stablecoin will come into effect in a number of countries and on some major cryptocurrency exchanges. The decision is partly driven by a desire for greater transparency and control over financial markets, to combat financial fraud. Tether is a company issuing USDT token with a market capitalisation of $140 billion (third in the list of cryptocurrencies by capitalisation after bitcoin and ether), while its closest competitor – USDC token from Circle – has a capitalisation of $43 billion. And with the information about USDC’s compliance with the requirements that USDT has yet to pass, this difference is decreasing. However, the great popularity of USDT is undeniable.

Is USDT legal in Europe in 2025?

Regulators and Governments: Claims by a number of governments that banning USDT allows for greater control over cryptocurrency markets and reduces the risk of financial fraud appear to be more of a myth. Tether itself reports working with 180 intelligence agencies in 45 jurisdictions to freeze stolen funds, including freezing funds from wallets that have passed through and remained free on the wallets of its competitor Circle.

Markets in Crypto Assets (MiCA) – The Markets in Crypto Assets Regulation in Europe comes into effect in June 2023: the regulator’s requirement to hold at least 60 percent of stablecoin issuers’ reserves in EU bank accounts is something Tether itself is in no hurry to comply with. Tether CEO Paolo Ardoino said that “this concentration of funds in European banks could lead to vulnerabilities, as only a fraction of these deposits will be available for immediate withdrawal. In addition, Paolo criticized the low level of insurance (up to $100,000) provided by the EU banking system for deposits, which, to put it mildly, is not commensurate with the amount of the deposit in this case.

Tether has already invested in StablR, a European provider of stablecoins, which will help accelerate their adoption in the EU.

It is clear that the company is trying and doing everything it can to get its token accepted in EU countries.

In which countries will USDT be banned?

European Union: According to the new MiCA (Markets in Crypto-Assets) rules, USDT will be banned on all regulated platforms in the European Union from 1 January 2025.

China: The Supreme People’s Procuratorate of China (SPP) and the State Administration of Foreign Exchange (SAFE) issued a public warning, emphasising that it is illegal to use Tether (USDT) as an intermediate instrument in transactions between RMB and other foreign currencies.

USA: The US Department of Justice has launched an investigation into Tether, The Wall Street Journal (WSJ) reported. The results of the investigation may well raise the issue of both restriction in use and continued circulation of the token.

A ban on USDT in Europe from 1 January 2025 will cause significant changes in the cryptocurrency markets. Regulators and alternative stablecoins may benefit from this decision, while investors and cryptocurrency users will be looking for new solutions for their financial needs. However, there is an option for Tether to resolve the issue with the regulator and continue to circulate freely in the EU.

The anti-cryptocurrency stance of banks in Europe

If you look at the banking sector and financial institutions in Europe, there is a strong aversion to cryptocurrencies in traditional financial systems. The president of the European Central Bank, Christine Lagarde, has clearly stated that cryptocurrencies “have no value”. With this stance and influence on regulatory policy, Lagarde may be hoping that cryptocurrencies are either completely eliminated or at least severely restricted in Europe. Despite this 2022 announcement, cryptocurrencies continue to grow and develop rapidly. This situation poses a potential threat to the credibility of traditional financial institutions and central banks. One of the key features of cryptocurrencies is decentralization, which aims to reduce the role of intermediary institutions in the financial system and distribute power to individuals. This state of affairs could prove challenging for the European banking sector, which is used to central authority, and could be a significant factor in their negative attitude towards cryptocurrencies. USDT has performed well over the years as a stable asset in the cryptocurrency world. As you can see, thanks to the MiCA rules, USDT, which has been used as an alternative stablecoin for many years, will become a non-compliant asset once the rules are implemented, and therefore cannot be offered as a stablecoin by cryptocurrency exchanges.

CBDC and Europe’s cryptocurrency strategy

Lagarde supports the idea of introducing a central bank digital currency (CBDC) in the Eurozone. However, she seems to think that competition from cryptocurrencies such as bitcoin is undesirable. Furthermore, as the European Central Bank continues to cut interest rates, there is the question of what the value of the euro will be. In order to service the Eurozone’s debt, a significant increase in money issuance would be required, which would reduce the value of the currency to European citizens. Lagarde probably believes that the CBDC will accelerate this process and prevent citizens from moving to safe havens such as gold, silver or bitcoin. It seems that governments and central banks, which are losing the ability to tightly control money with each new regulation, are eager to remove cryptocurrencies from the market under the pretext of protecting users, despite the fact that these assets have been around for years and have fulfilled their function.

MiCA Regulation represents one of the most significant steps in the regulation of cryptoassets in the European Union, aimed at creating a unified legal framework for the circulation of tokens and other digital assets. The adopted regulation ensures transparency and stability of the market, promoting innovation and protecting the rights of participants.

MiCA covers a wide range of digital assets, including utility tokens, asset-referenced tokens and e-money tokens. These categories cover a variety of token models, ranging from those used to access services to tokens whose value depends on a basket of assets or fiat currencies. The regulation also affects the activities of virtual asset service providers (VASPs), such as exchange platforms, custodial services and token issuers.

A key element of MiCA is mandatory licensing for token issuers, especially those whose activities involve asset-referenced or e-money tokens. This requirement aims to increase transparency and prevent financial risks. Issuers are required to publish information documents (“white papers”) detailing the characteristics of the tokens, the risks involved and the terms of issuance. These documents must be made available to all potential investors.

The regulations place particular emphasis on investor protection, providing strict security measures for the safekeeping of assets and mandatory insurance against losses. For example, custodial services are required to ensure that clients’ assets are not commingled with their own and are protected from potential financial difficulties of the company. These measures are aimed at creating trust and making the market more attractive to institutional and private investors.

Tokenisation of assets such as real estate, artwork or securities is also covered by MiCA. The regulation facilitates the growth of the market for tokenised assets by providing legal certainty and simplifying market access for issuers and investors. Thanks to MiCA, companies can offer tokens representing interests in real assets on a single European market without having to take into account disparate national legislation.

Despite the obvious advantages, MiCA imposes a number of obligations on market participants. Companies must adapt their business models to the new regulatory requirements, which can be time-consuming and resource-intensive. In addition, it may be difficult for smaller companies to enter the market due to high licensing and capital requirements.

MiCA also helps prevent risks related to volatility and financial stability. For example, regulators are able to monitor the activities of issuers and service providers, enabling them to respond quickly to potential threats to the market. These measures are particularly important in the context of asset-linked tokens, as their volatility can have a significant impact on the financial system.

The introduction of MiCA marks a new stage in the development of the digital economy and tokenisation in the European Union. The regulation creates conditions for market growth, builds investor confidence and promotes innovation. In the future, we can expect an increase in the number of tokenised assets, growing international cooperation and unification of approaches to the regulation of cryptoassets. MiCA provides unique opportunities for businesses and investors, ensuring a balance between technology development and legal compliance.

What is Tokens?

Tokens are digital units created using blockchain technology that can be used to represent a variety of assets or rights. They play a key role in today’s digital economy, providing new opportunities for businesses, investors and users.

Depending on their purpose, tokens fall into several categories. Utility tokens, or utilitarian tokens, provide access to specific products or services. For example, they can be used to pay for a subscription to a platform or access to exclusive content. Asset-backed tokens, or asset-backed tokens, are digital expressions of real assets such as real estate, artwork or commodities. E-money tokens, or e-money tokens, are linked to the value of a fiat currency, such as the euro or dollar, and are used to facilitate transactions.

The main advantage of tokens is their versatility and the possibility of eliminating intermediaries. With their help, companies can attract investments, providing investors with a transparent and accessible tool for participating in projects. Investors, in turn, get the opportunity to diversify their portfolio and participate in projects with low barriers to entry. For example, tokenisation of real estate allows them to acquire stakes in properties, bypassing the complexities of the traditional transaction system.

The blockchain, the technological basis of tokens, ensures transparency and security of transactions. Each transaction is recorded in a distributed ledger, making it impossible to change it retroactively. This makes tokens particularly attractive for financial transactions where trust and risk minimisation are important.

However, tokens are also associated with certain challenges. The main one is regulation. The lack of uniform international standards creates legal uncertainty, which may complicate the use of tokens in different jurisdictions. Data protection and user security also remains an important issue. Companies working with tokens must comply with strict cybersecurity requirements.

In the European Union, the adoption of the MiCA (Markets in Crypto-Assets) regulation was an important step in addressing these issues. MiCA establishes the legal framework for tokenisation, including requirements for issuers and service providers. This protects investors’ rights and promotes confidence in the market.

The future of tokens promises further development and expansion of their application areas. They are already finding applications not only in finance, but also in areas such as art, sports, logistics and energy. For example, tokens can be used to track supply chains or incentivise environmentally friendly initiatives.

Thus, tokens represent a powerful tool that changes the approach to asset management and investment. For businesses, it opens new horizons, allowing them to optimise processes and raise capital, and for users, it provides access to new opportunities in the digital economy. However, the successful use of tokens requires consideration of legal aspects, the technological framework and the interests of all market participants.

The Impact of MiCA on Investments and Capital Raising

With the introduction of MiCA Regulation (Markets in Crypto-Assets Regulation), the rules for ICOs (Initial Coin Offering) and IEOs (Initial Exchange Offering) in the European Union have undergone significant changes. MiCA sets clear standards for token issuers, which aims to ensure transparency and investor protection. These changes have a significant impact on how startups and other cryptocurrency market participants raise capital.

To conduct an ICO or IEO under MiCA, companies are required to disclose full information about their tokens, their functionality, the purpose of the issuance and the associated risks. This includes the preparation of a whitepaper, which must contain key information for investors, including an economic model, technical documentation and project development forecasts. The whitepaper must also be filed with the relevant regulatory authority for approval. Such requirements significantly increase investor confidence, but also increase the cost and time of preparation.

MiCA strengthens investor protection by setting transparency and assurance requirements for projects. Issuers are required to provide regular reports and disclose up-to-date information on the status of their project. In addition, the regulations introduce compensation mechanisms for investors in case of fraud or project insolvency. For cryptoasset service providers (CASPs) participating in the IEO, there are also strict obligations, including vetting issuers and ensuring that their tokens comply with MiCA requirements.

Practical recommendations for startups include the following steps. Firstly, a due diligence of the project should be conducted to identify possible risks and non-compliance with MiCA requirements. Secondly, startups are advised to develop a compliance strategy, including preparation of a whitepaper, establishment of risk management mechanisms and development of internal procedures. It is also important to choose an appropriate jurisdiction for registration and licensing of the project, given the different approaches of national regulators in EU countries. For example, Estonia and Malta offer simplified registration procedures, which may be advantageous for smaller projects.

Our co-operation with Regulated United Europe (RUE) enables start-ups to effectively adapt to MiCA requirements and raise capital under the new regulation. We provide support at all stages, including preparation of documentation, liaising with regulators, development of risk management policies and employee training. Our goal is to help startups successfully launch their projects, minimise regulatory risks and ensure investor confidence in the new legal landscape of the European Union.

How can Regulated United Europe help with MiCA regulation for Tokens?

With the introduction of MiCA Regulation (Markets in Crypto-Assets Regulation), the European Union is creating a clear legal framework for the regulation of cryptoassets, including utility tokens and asset-referenced tokens. This opens up new opportunities for token issuers, but also requires strict standards of transparency, risk management and data protection. Regulated United Europe (RUE) provides comprehensive support at every stage of token project implementation, helping to meet MiCA requirements and successfully enter the EU market.

MiCA aims to harmonise token regulation by defining rules for issuers and service providers. Utility tokens used to access certain services or products and asset-referenced tokens backed by reserves must comply with a number of requirements. For example, issuers are required to provide detailed information about tokens, their purpose, associated risks and user protection mechanisms.

Choosing the right jurisdiction is key to the successful launch of a token project. Countries such as Germany and France already have well-developed regulatory frameworks to speed up the licensing process. Estonia and the Czech Republic offer crypto-friendly conditions, including simplified registration procedures and access to technology resources. Nevertheless, the differences in MiCA adaptation at the national level require detailed analysis.

RUE helps companies assess their business model and choose the best jurisdiction for the project. We accompany clients at all stages, from preparing whitepapers and developing risk management strategies to submitting applications for licensing. Our team conducts due diligence to minimise regulatory risks and ensure full compliance with MiCA requirements.

In addition, projects that handle user data must comply with the GDPR. This includes implementing data protection procedures, appointing a DPO and conducting a DPIA. RUE provides comprehensive assistance with these processes to ensure compliance with all legal regulations.

Examples of successful adaptation to MiCA demonstrate how token projects can effectively comply with the new standards.

By working with Regulated United Europe, companies have access to expert support and customised solutions. We provide long-term assistance, including monitoring regulatory changes, staff training and advice on dealing with regulators. Our goal is to help your token project succeed in the European Union market and ensure sustainable development in the new regulatory environment.

MiCA Regulation represents a significant milestone in the regulation of digital assets in the European Union. With the development of blockchain technology and the growing popularity of cryptoassets, the EU is actively implementing a legal framework to regulate this sector. The adopted Regulation on Cryptoasset Markets aims to eliminate legal uncertainty and create a transparent, fair and stable market. It covers utility tokens, asset-referenced tokens and e-money tokens, setting out rules for virtual asset service providers, including licensing requirements, minimum capital and compliance with anti-money laundering measures.

Tokenisation is the process of converting real assets into digital tokens registered on the blockchain. MiCA forms the basis for the legal circulation of such tokens, which is particularly important for investors and issuers. Issuers of tokens are required to publish information documents detailing the token, its functions, risks and terms of issue. Strict licensing requirements for issuers are also introduced, especially for asset-referenced and e-money tokens. This is complemented by exemptions for the issuance of tokens to a limited number of investors or in small volumes. To protect investors’ rights, safeguards for the safe custody of assets and compulsory insurance against financial loss are in place. The regulation also aims to prevent volatility and risks to the financial system associated with tokens.

The introduction of MiCA simplifies access to the European market for asset tokenisation companies. Removing the fragmentation of national rules between EU countries, clear regulatory requirements and encouraging the use of blockchain to tokenise traditional assets create an attractive business environment. However, companies face the challenge of adapting their business models to the new requirements, which requires additional resources. Increased requirements may limit market entry for smaller companies, favouring the dominance of large players. Also, the need to comply with legal regulations may limit the introduction of innovative solutions.

MiCA lays the foundation for the growth of tokenised assets by providing legal certainty and confidence to market participants. We can expect to see an increase in the number of tokenised assets, greater international cooperation and harmonisation of approaches to regulating digital assets, and an increased role for blockchain in traditional sectors of the economy. MiCA opens up new opportunities for businesses and investors by striking a balance between innovation and regulation. Successful integration of MiCA will require active co-operation between businesses and regulators to overcome challenges and utilise the potential of blockchain technology.

 What is Tokenization?

Tokenisation is the process of converting real or digital assets into tokens that can be registered and transferred using blockchain technology. This process has become a key element of the digital economy, offering an innovative way to manage assets, increasing their liquidity and accessibility for investors.

Asset tokenisation is based on the creation of a digital representation of a particular asset, be it real estate, shares, artwork or other valuable objects. Each token represents a unit of value that can be bought, sold or transferred on a digital platform. This approach provides transparency and simplifies the trading process by eliminating the need for traditional intermediaries such as banks or brokers.

One of the key benefits of tokenisation is increased asset liquidity. For example, traditional assets such as commercial real estate or art are often characterised by low liquidity due to their high cost and limited range of buyers. Tokenisation allows an asset to be split into multiple tokens that can be sold to different investors, making access to capital much easier. It also lowers barriers to investment participation, providing the opportunity to acquire stakes in assets even with limited financial resources.

The application of tokenisation covers a wide range of industries, including finance, real estate, the arts and even sporting events. In the financial sector, tokenisation opens up new horizons for raising capital and managing assets. For example, companies can issue tokens instead of traditional shares, giving investors access to stakes in the business via blockchain. This makes the issuance process faster and more cost-effective.

In the real estate sector, tokenisation simplifies the purchase, sale and management of properties. Investors can acquire shares in real estate, bypassing complex processes of registering ownership rights. As a result, the market becomes more accessible and attractive to a wide range of participants.

However, tokenisation also comes with a number of challenges. The main ones include regulation, data security and risk management. For example, the lack of uniform standards and legal frameworks can complicate tokenisation processes across jurisdictions. In addition, securing digital tokens and protecting user data requires significant efforts on the part of developers and service providers.

Nevertheless, many states and international organisations are actively working to create a favourable regulatory environment for tokenisation. This includes developing standards to protect investor rights, ensure transparency and mitigate risks. The European Union, for example, has already taken significant steps in this direction through the implementation of the MiCA regulation, which covers the cryptoasset market and creates a legal framework for tokenisation.

In the long term, tokenisation has the potential to change traditional business and investment models, providing new opportunities for asset owners and investors. It promotes efficiency gains and cost savings, making it an important element of today’s digital economy. For companies wishing to use tokenisation, it is important to consider current and future regulatory requirements and be prepared to adapt the technology to changing market conditions.

Tokenisation is not just a technology, but a tool that can transform the asset market, making it more accessible, transparent and democratic. Its impact on the economy continues to grow, promising new opportunities for businesses and investors in the near future.

How can Regulated United Europe help with MiCA regulation for Tokenisation?

With the introduction of MiCA Regulation (Markets in Crypto-Assets Regulation), tokenisation is becoming one of the most promising applications of crypto-assets. MiCA sets uniform standards for the regulation of crypto-assets, including utility tokens and asset-referenced tokens, which brings clarity to the legal status of tokenised assets. However, it also creates a need for tokenisation companies to comply with the new requirements. Regulated United Europe (RUE) provides professional support at all stages of tokenisation projects, helping businesses adapt to MiCA requirements.

Tokenisation, as the process of converting assets into digital tokens, involves the creation of new opportunities for financing, asset management and transactions. However, projects in this area face a number of regulatory challenges. MiCA requires token issuers to ensure transparency of operations, develop risk management policies and protect user data. Additionally, companies are required to consider GDPR provisions if their activities involve the processing of personal data, which imposes additional data protection obligations.

Choosing the right jurisdiction for tokenisation projects is one of the key success factors. Countries such as Germany and France already have well-developed legal frameworks for dealing with tokenised assets. Estonia and the Czech Republic, on the other hand, offer loyal conditions for crypto startups, including simplified licensing procedures. It is important to keep in mind that MiCA adaptation at the national level may vary in terms of timing and requirements, making jurisdictional analysis critical.

The main challenges for tokenisation projects relate to MiCA compliance, including documenting processes, managing risk and adhering to transparency standards. For example, issuers are required to provide full information about tokens, their functionality and associated risks. In addition, companies dealing with tokenised assets must implement mechanisms to protect user data and comply with data minimisation rules.

Regulated United Europe helps companies adapt to these requirements. We conduct due diligence to identify areas requiring adaptation and develop a strategy for MiCA compliance. Our team develops customised policies and procedures, helps prepare the necessary documentation and provides support when dealing with regulators. We also train employees so they are prepared to work effectively under the new regulatory standards.

Examples of successful adaptation to MiCA include projects that have implemented robust risk management mechanisms and obtained licences in crypto-friendly jurisdictions. This has enabled them to attract institutional investors and increase customer confidence. For example, one real estate tokenisation platform registered in a tax-friendly jurisdiction and developed a whitepaper compliant with MiCA standards, which greatly simplified the fundraising process.

By working with Regulated United Europe, tokenisation companies gain access to unique expertise to minimise regulatory risks and take advantage of new opportunities. We offer long-term support, monitoring regulatory changes and helping you to adapt quickly to new requirements. Our goal is to ensure the sustainable development of your projects in the regulated landscape of the European Union.

The Markets in Crypto-Assets (MiCA) Regulation of the European Union establishes a legal framework for the regulation of stablecoins, including their issuance, circulation and use. This regulation was adopted to create a transparent and sustainable environment for the development of crypto-assets, ensure consumer protection and minimise risks to the financial system.

Stable coins are a type of cryptoasset whose value is linked to certain underlying assets such as fiat currencies, commodities or baskets of assets. They provide price stability, which makes them popular for use in settlement, store of value, and investment.

MiCA introduces the following key provisions for the regulation of stable coins:

1. Classification of stable coins: MiCA distinguishes between two types of stable coins:
   • Asset-Referenced Tokens (ART): backed by a basket of assets or commodities.
   • Electronic Money Tokens (EMT): linked to the value of a fiat currency such as the euro or dollar.
2. Issuer Licensing: Issuers are required to obtain the appropriate licence from the national regulator to issue stable coins. This requires providing detailed information on collateral arrangements, business model and risk management measures.
3. Reserve collateral: Issuers of stable coins are required to maintain full reserve collateral. Reserves must be placed in highly liquid and safe assets, such as government bonds or bank deposits. This ensures the issuer’s ability to repay obligations to token holders at any time.
4. Transparency and disclosure: Issuers are required to regularly publish information on reserve structures, audits and any changes to collateral arrangements. This allows users to have confidence in the reliability of the token.
5. Consumer protection: The Regulation provides for the creation of compensation mechanisms for token holders in the event of issuer default or loss of liquidity. This includes the right to redeem tokens at their face value.
6. Countering systemic risks: Large issuers of stable coins whose activities may affect financial stability are subject to stricter regulatory oversight. This includes additional capital, reporting and risk management requirements.
7. Payment system integration: EMTs can be used to make payments within the traditional financial system, which requires issuers to comply with standards applicable to payment service providers.

The application of MiCA contributes to building confidence in stable coins as a financial instrument. On the one hand, the regulation creates conditions for their safe use, on the other hand, it prevents possible abuses and risks for users and the economy as a whole.

MiCA implementation also promotes innovation in digital finance. Common rules at the European Union level open up opportunities for issuers of stable coins to scale their businesses and integrate them with other financial products. However, MiCA compliance requires significant efforts on the part of issuers, including investment in technology, risk management and compliance with regulatory standards.

MiCA sets a new era for stable coins by ensuring their stability, security and integration into the financial ecosystem. This creates the basis for further growth of the digital economy and increasing its sustainability.

 What is stable coin?

Stable coins (stablecoins) are a type of cryptoasset that provide stability of value by being linked to underlying assets such as fiat currencies, precious metals, commodities or baskets of assets. The main goal of stablecoins is to eliminate the volatility that characterises many cryptocurrencies and offer users a reliable tool for settlement, value storage and investment.

Stable coins can be divided into three main categories:

1. Fiat-backed stable coins: Linked to one or more fiat currencies, such as the US dollar or the euro. Reserves for such coins are held in bank accounts or other liquid assets, ensuring that they can be redeemed at a fixed price.
2. Commodity-backed stable coins: Backed by reserves of commodities such as gold or oil. This allows users to invest in assets by storing them in digital form.
3. Algorithmic stable coins: Their stability is maintained through algorithms and smart contracts that regulate supply and demand for the token, instead of reserving assets.

Key benefits of stable coins include:

• Stability: Being tied to the underlying assets eliminates the sharp fluctuations in value common to traditional cryptocurrencies.
• Broad applicability: Stable coins are used in international payments, e-commerce, and as a store of value.
• Technological innovation: Through integration with blockchain technology, they provide transparency, security and transaction efficiency.

However, the use of stable coins also involves a number of risks, including dependence on issuer reliability, regulatory uncertainties, and potential threats to financial stability if mass adoption occurs.

In the European Union, activities related to stable coins are regulated under the Markets in Cryptoassets Regulation (MiCA). MiCA establishes strict rules for issuers of stable coins, including requirements for backing, licensing and transparency. This protects users and minimises risks to the financial system.

Issuers of stable coins are required to maintain full reserve coverage, regularly publish information about their reserves and ensure the right of users to redeem tokens at face value. In addition, large issuers whose activities may have a significant impact on the financial system are subject to stricter supervision.

Stable coins play an important role in the development of the digital economy by combining the advantages of traditional financial instruments and innovative technologies. They help accelerate international payments, reduce costs and expand access to financial services. At the same time, their successful development depends on compliance with regulatory requirements, increasing user trust and integration with existing financial infrastructure.

Stable coins are thus a key element of today’s digital economy, providing a reliable and versatile tool for businesses and private users.

USDT MiCA regulation

With the implementation of MiCA Regulation (Markets in Crypto-Assets Regulation), the European Union has established a legal framework to regulate cryptocurrencies, including stablecoins such as USDT. These changes aim to ensure transparency, user protection and risk management. Regulated United Europe (RUE) provides comprehensive support to companies working with USDT and other stable coins, helping them adapt to the new standards and successfully launch projects in the EU.

USDT, being one of the most popular stablecoins backed by fiat currency, falls under the category of e-money tokens under MiCA. For USDT issuers, this means the need to meet strict reserve, transparency and user protection requirements. MiCA requires issuers to maintain sufficient fiat currency reserves, provide regular reports on their assets and protect the interests of token holders.

One of the main challenges for USDT companies is choosing the right jurisdiction for registration. Germany and France provide a developed legal framework for licensing e-money tokens, while the Czech Republic and Estonia offer simplified registration procedures and favourable tax conditions, further enhancing the attractiveness of the Crypto license in the Czech Republic for crypto-related ventures.. However, differences in adaptation periods and requirements between EU member states make the strategic choice of jurisdiction critical.

RUE helps USDT issuers determine the best jurisdiction to operate in. We conduct due diligence and business model analysis to offer the most favourable solution. Our team develops a MiCA compliance strategy, including preparation of whitepaper, risk reports and internal documentation. We also support the licensing process, ensuring full MiCA compliance.

USDT issuers and other stablecoin companies are also required to comply with the GDPR if their activities involve the processing of personal data. This includes appointing a DPO, conducting DPIAs and implementing robust data protection systems. RUE provides a full range of services to ensure GDPR compliance, minimising risk and increasing user confidence.

Examples of successful adaptation include projects that have registered in countries with favourable conditions for crypto projects, such as Malta or Estonia. These companies have implemented reserve management mechanisms and developed transparent reporting processes, allowing them to attract institutional investors and strengthen their market position.

By partnering with Regulated United Europe, USDT companies gain access to expert support and customised solutions. We offer long-term assistance, including monitoring regulatory changes, employee training and advice on how to engage with regulators. Our goal is to help your project successfully adapt to the new regulation and ensure its sustainability within the European Union.

Stablecoins under MiCA: Regulatory Peculiarities

MiCA Regulation (Markets in Crypto-Assets Regulation) sets out clear rules for stablecoins, including e-money tokens and asset-referenced tokens, which play a key role in the cryptoasset ecosystem. These types of tokens are characterised by their attachment to specific assets and provide users with stability of value. However, new regulatory requirements are significantly changing the approach to their issuance and use.

For e-money tokens, MiCA sets requirements similar to those for traditional electronic money. Issuers are required to ensure that the token is fully linked to fiat currency, maintain liquid reserves equivalent to the face value of tokens issued, and provide holders with the right to redeem tokens at any time. This creates a more rigorous framework for e-money token-related transactions and increases trust on the part of users and investors.

Asset-referenced tokens have a wider range of collateral, which may include a basket of assets such as fiat currencies, commodities or other crypto-assets. MiCA requires issuers of such tokens to maintain robust and transparent provisioning mechanisms to ensure their stability. Issuers are required to publish regular reserve reports, engage external auditors for verification and develop risk management mechanisms.

Collateralisation and reservation requirements are central to MiCA’s regulatory policy. For both types of tokenisation is provided for:

1. Maintaining sufficient reserves. Reserves should be liquid and equivalent to the total value of tokens issued. This reduces risks for users and strengthens the stability of tokens.
2. Regular reporting. Issuers are required to provide detailed reports on the composition and status of reserves and disclose information on potential risks.
3. Risk management measures. The development and implementation of operational, financial and market risk management systems are becoming mandatory for all issuers.

Potential implications for issuers include the need for significant investment in MiCA compliance. This may include increased costs of maintaining reserves, engaging specialised legal and audit services, and reviewing business models. However, compliance offers new opportunities for growth, including access to a wider range of institutional investors and users who value stability and transparency.

MiCA also strengthens confidence in stablecoins by encouraging their wider acceptance as a means of payment and as a store of value. Issuers that successfully adapt to the new requirements will be able to strengthen their market position and attract additional investment.

Our co-operation with Regulated United Europe (RUE) enables stablecoin issuers to effectively deal with the challenges associated with MiCA implementation. We provide a full range of services, including selection of the optimal jurisdiction, development of reservation policies, preparation of documentation and liaising with regulators. Our goal is to help your project succeed in the new regulatory environment and ensure sustainable development within the European Union.

 How can Regulated United Europe help with MiCA regulation for stable coin?

With the introduction of MiCA Regulation (Markets in Crypto-Assets Regulation), the European Union has set clear standards for the regulation of stablecoins, ensuring their stability, transparency and user protection. However, it also imposes serious obligations on issuers of such tokens, including compliance with reserve, transparency and risk management requirements. Regulated United Europe (RUE) provides comprehensive support to stablecoins projects, helping them adapt to the new regulatory standards and successfully launch projects in the European Union.

Stablecoins backed by fiat currency or other assets play a key role in the cryptoasset ecosystem, providing users with a tool to minimise volatility. MiCA regulates two types of stablecoins: e-money tokens linked to a single fiat currency and asset-referenced tokens backed by a basket of assets. Each of these types is subject to strict requirements, including providing regular reporting, ensuring robust reserves and implementing user protection mechanisms.

One of the key challenges for issuers of stablecoins is the choice of jurisdiction for registration and licensing. Germany and France offer well-developed regulatory infrastructures, which simplifies the MiCA compliance process. At the same time, countries such as the Czech Republic and Estonia provide simplified licensing procedures and crypto-friendly conditions, making them attractive to startups. Differences in national approaches require detailed analysis and a strategic approach to choosing a project location.

RUE helps its clients to choose the most suitable country to register their stablecoin project by conducting a detailed analysis of their business model and company goals. We support our clients at all stages of project implementation, from preparing the necessary documentation, including whitepaper and risk reports, to liaising with national regulators.

stablecoins projects are also required to comply with the GDPR if their activities involve the processing of personal data. This includes appointing a DPO (Data Protection Officer), conducting a DPIA (Data Protection Impact Assessment) and implementing risk minimisation procedures. RUE provides support with these processes, ensuring that your project is compliant with both MiCA and GDPR.

Examples of successful adaptation include companies that have incorporated in countries with favourable conditions for crypto projects, such as Estonia. These projects have implemented robust reserve management mechanisms and regular reporting, allowing them to not only meet the new standards but also attract significant investment.

By working with Regulated United Europe, issuers of stablecoins gain access to unique expertise and tailored solutions to help minimise regulatory risks and take advantage of new regulation. We offer long-term support, including monitoring regulatory changes, staff training and advice on how to engage with regulators. Our goal is to help your project succeed and ensure sustainability in the new European Union regulatory environment.

Smart contracts are self-executing blockchain-based programmes. Their main purpose is to automate the execution of agreements between parties under predefined conditions. In recent years, they have become an important tool in the crypto-economy, finding applications in various fields, including financial services, digital asset management, insurance and even public administration. However, their use involves a number of legal, technical and operational risks, which the Markets in Crypto-Assets Regulation (MiCA) seeks to address.

The MiCA Regulation, adopted by the European Union in 2023, aims to create a single legal framework for cryptoassets and smart contracts, ensuring their reliability, transparency and protection of users’ interests. MiCA introduces the following key provisions relating to smart contracts:

1. Transparency and code availability. Smart contract developers are required to provide access to source code and detailed documentation, allowing stakeholders to evaluate the functionality and security of the programmes. This also contributes to a higher level of trust in the technology.
2. Security compliance. MiCA requires developers to implement measures to protect smart contracts from cyber-attacks and manipulation. This includes conducting regular audits, using proven algorithms and ensuring that systems are resilient.
3. Enforceability and legal relevance. MiCA emphasises the importance of the legal correctness of smart contracts. They should be structured in such a way that their performance is recognised as legal under the legal systems of EU countries.
4. User protection. The Regulation requires the implementation of mechanisms that ensure that the smart contract can be adjusted or stopped in the event of errors, breach of terms and conditions or other unforeseen circumstances.
5. Developer Liability. MiCA introduces obligations for developers and smart contract operators to recover damages if their products cause financial loss to users.

For smart contract developers, MiCA presents both challenges and opportunities. On the one hand, complying with the new requirements will require additional resources and effort, including audits, comprehensive documentation and software customisation. On the other hand, the regulation fosters a more trusting environment for users and investors, which opens new horizons for incorporating smart contracts into traditional business models.

Smart contracts have a huge potential to transform many sectors of the economy. However, their development is impossible without a clear legal framework that protects the interests of all market participants and minimises risks. MiCA plays a key role in shaping this framework, balancing innovation with the need for regulation. Thanks to this, smart contracts can become a reliable tool for automation and digitalisation of processes in the global economy.

What is Smart Contract?

A smart contract is a piece of software code that fulfils predetermined conditions and operates based on blockchain technology. The main purpose of a smart contract is to automate the execution of agreements between parties, eliminating the need for intermediaries. This makes them an important tool for creating reliable, transparent and efficient transactions in the digital economy.

Smart contracts operate on an “if-then” basis. For example, if one party fulfils a certain condition, the smart contract automatically initiates a related action, whether it is a transfer of funds, a transfer of rights, or the activation of an event. This process is completely transparent and irreversible, as a record of the contract’s fulfilment is stored on the blockchain.

The main characteristics of smart contracts include:

1. The fulfilment of contract terms and conditions takes place without human involvement, which eliminates the possibility of errors or manipulation.
2. The code and terms of the smart contract are available for verification to all network participants, ensuring a high level of trust.
3. Smart contracts are executed in a decentralised network, making them resilient to external factors such as third-party intervention.
4. Once deployed on the blockchain, the terms of a smart contract cannot be changed, ensuring that they are enforced in their original form.

Smart contracts find applications in a variety of areas, including:

• Financial Services. They are used to manage payments, loans, insurance policies and other financial instruments, reducing costs and increasing transparency.
• Supply chain management. Smart contracts allow tracking the origin and movement of goods, automating settlements and minimising bureaucracy.
• Real Estate. They simplify the process of buying, selling, renting and managing real estate by automating legal and financial operations.
• Smart contracts can provide transparency and security for e-voting, preventing manipulation.

Despite the obvious advantages, smart contracts also have their limitations. For example, errors in software code can lead to unintended consequences. In addition, the legal status of smart contracts remains unresolved in most jurisdictions, which can cause difficulties in their use.

With the development of technology and legislative frameworks, smart contracts are becoming an integral part of the digital transformation of business. Their potential to automate processes, reduce costs and improve efficiency makes them a key tool for companies seeking to adapt to the new economic reality. In the long term, smart contracts can significantly change traditional business models, accelerating the transition to a decentralised economy.

 How can Regulated United Europe help with MiCA regulation for Smart Contracts?

With the introduction of MiCA Regulation (Markets in Crypto-Assets Regulation), the use of smart contracts in the crypto industry and blockchain projects is coming under increased regulatory scrutiny. MiCA establishes a legal framework to ensure transparency, user protection and risk management, which has a significant impact on projects using smart contracts. Regulated United Europe (RUE) provides professional support to help smart contract projects adapt to the new regulatory standards of the European Union.

Smart contracts are automated software agreements powered by blockchain technology. They are used in a variety of applications, including DeFi, asset tokenisation and decentralised lending. Despite their autonomous nature, projects based on smart contracts are subject to MiCA if their operations involve the issuance, management or exchange of crypto-assets. Companies are required to ensure that their smart contracts comply with transparency, security and risk management requirements.

One of the key challenges for projects working with smart contracts is the choice of jurisdiction. Countries such as Germany and France already have established regulatory frameworks, which can speed up the process of adapting to MiCA. Estonia and the Czech Republic offer crypto-friendly conditions, including simplified licensing procedures. However, differences in the timing and requirements of MiCA implementation at the country level require in-depth analysis and a strategic approach.

RUE helps smart contract projects choose the most suitable country to realise their ideas. Our team conducts due diligence to assess the project’s compliance with MiCA requirements and develops an adaptation strategy. We also provide documentation services, including whitepapers, risk reports and internal governance policies.

In addition, projects using smart contracts are required to comply with the GDPR if their activities involve the processing of personal data. This includes appointing a DPO, conducting a DPIA and implementing data protection measures. RUE provides support in these processes, helping companies to minimise legal risks.

Examples of successful adaptation to MiCA demonstrate how smart contract-based projects can effectively comply with the new standards. For example, a decentralised lending platform has implemented risk management mechanisms and registered in a crypto-friendly jurisdiction, allowing it to attract institutional investors and build customer trust.

By working with Regulated United Europe, companies have access to expert support and customised solutions. We provide long-term assistance, including monitoring regulatory changes, employee training and advice on dealing with regulators. Our goal is to help your smart contract project succeed in the new regulatory environment and ensure its sustainability within the European Union.

In 2023, the European Union approved the Markets in Crypto-Assets Regulation (MiCA), which was one of the first global initiatives to establish a common legal framework for the regulation of cryptoassets, including non-fungible tokens (NFTs). Although the main provisions of MiCA are focused on common cryptoassets and stable coins, its impact on the NFT market is generating significant interest among market participants.

MiCA aims to establish legal certainty, protect consumers and prevent financial crimes such as money laundering and terrorist financing. The main provisions of the regulation include: the definition of cryptoassets, introducing uniform definitions of digital assets, including cryptocurrencies, stablecoins and tokens, that fall under its regulation; licensing, with strict requirements for cryptoasset issuers and cryptoasset service providers (CASPs) to obtain licences; transparency and user protection, where issuers are required to provide detailed information about their products, including a white paper that complies with established standards; countering from

NFTs are unique digital assets that are used to prove ownership of objects ranging from digital art to real estate. At first glance, NFTs do not seem to fit the definition of “replaceable” assets and thus would be outside the scope of MiCA. However, the regulations provide for instances where NFTs may fall within its requirements. If NFTs are used for financial purposes, such as raising capital, or have similar characteristics to substitutable assets, they may be treated as crypto-assets. If tokens are issued in bulk and with minimal differences from each other, they may be recognised as “serial”, making them subject to regulation.

MiCA requires issuers and platforms dealing in NFTs to ensure transparency, including providing a full and accurate description of the asset, supported by technical documentation; risk management, including implementing procedures to minimise risks associated with market manipulation, cyber-attacks and insufficient liquidity; investor protection, where platforms offering NFT trading must ensure that users’ interests are adequately protected; compliance with AML regulations, including the application of customer identification (KYC) and transaction monitoring procedures; and compliance with AML rules, including the use of customer identification (KYC) and transaction monitoring procedures.

Issuers and platforms will need to adapt their operations to meet the new standards, which may require significant resources. Increased regulation may slow down the development of new projects, particularly those in the early stages. Issues of interpretation of certain MiCA provisions, particularly in the context of the uniqueness of NFTs, may be contentious.

Despite the challenges, MiCA also opens up new opportunities for the NFT market. Unified regulation will strengthen the confidence of institutional and private investors in NFTs. Companies operating within the legal framework will be able to raise finance more easily. Stimulating the creation of safer and more reliable platforms for NFT trading will also be an important aspect.

The adoption of MiCA marks a new stage in the regulation of digital assets in Europe, including NFTs. Market participants need to adapt quickly to the new requirements in order to remain competitive and take advantage of the benefits of a single legal framework. In the long term, MiCA can catalyse the sustainable development of the industry, making it more transparent, secure and attractive to investors.

What is Non-Fungible Token (NFT)?

A non-fungible token (NFT) is a unique digital asset that exists based on blockchain technology. It is used to prove ownership of a digital or physical object, which can include artwork, music, videos, gaming assets, real estate, and more. NFT differs from traditional cryptocurrencies in its uniqueness: each token is unique and cannot be directly exchanged for a similar one.

NFTs are blockchain-based, typically on platforms such as Ethereum that support the ERC-721 or ERC-1155 token standards. These standards allow tokens to be unique and provide the ability to store metadata describing the object or asset associated with the token. This makes NFTs suitable for tokenising objects where proof of uniqueness and authenticity is critical.

The key characteristics of NFTs are uniqueness, indivisibility and verifiability. Each NFT contains unique information such as metadata or digital signatures that make it different from other tokens. They are indivisible, meaning they cannot be split into pieces, unlike Bitcoin or other cryptocurrencies. Verifiability is achieved through the blockchain, which allows any user to verify the authenticity and origin of the token.

The applications of NFTs go beyond digital art. They are being used in the gaming industry, where players can own unique in-game items, in music, allowing artists to directly monetise their creativity, and in real estate, where NFTs can be used to prove ownership of virtual or physical objects. NFTs are also becoming a popular tool in the sports and entertainment industry, enabling the creation of exclusive content for fans.

An important aspect is the economic value of NFTs. Their value is determined by the rarity, demand, uniqueness and history of the object. For example, a work of art created by a famous artist may have a significantly higher value compared to less popular content. The NFT market is dynamic and actively developing, attracting the attention of collectors, investors and technology enthusiasts.

However, there are certain risks associated with the popularity of NFTs. The lack of regulation in some jurisdictions creates a field for fraud, including the sale of counterfeit tokens or copyright infringement. In addition, the high volatility of the market can lead to significant financial losses for investors. Environmental sustainability is also a concern, as some blockchains supporting NFT use energy-intensive consensus mechanisms.

NFTs are an innovative phenomenon that are transforming the way we interact with digital and physical assets. They offer new opportunities to monetise creativity, manage assets and engage with communities. In the long term, advances in technology and regulatory frameworks may enable even greater growth and adoption of NFTs across industries.

A practical guide to implementing MiCA in business processes

The introduction of MiCA Regulation (Markets in Crypto-Assets Regulation) in the European Union opens up new business opportunities for cryptoassets. However, cryptocurrency companies face the challenge of adapting their business processes to the new requirements. This guide is designed to help organisations prepare for the changes and ensure compliance with the new regulations.

Steps to prepare your company for the new regulations include:

1. Conducting a comprehensive analysis of current operations. Companies should audit their processes to identify areas that require change under MiCA. This may include analysing token issuance, customer transactions, risk management procedures and internal controls.
2. Develop a compliance strategy. Based on the results of the audit, a step-by-step plan for MiCA implementation should be created. This includes identifying key milestones, timelines and responsible parties. Particular attention should be paid to transparency requirements and user protection.
3. Documentation preparation. MiCA requires detailed information on cryptoassets and business processes. Companies must prepare a whitepaper describing token functionality, risks and user protection mechanisms. Policies and procedures should also be updated to comply with the new standards.
4. Employee training. An important part of MiCA implementation is training key employees on the new requirements. This will help avoid mistakes and speed up the adaptation process.

The most important aspects of MiCA implementation include:

• Compliance with transparency requirements. Companies are required to disclose information about tokens and business models, which increases investor and customer confidence.
• User protection. MiCA requires the security of customer funds and the implementation of strict data protection standards.
• Risk Management. Issuers and service providers are required to develop effective mechanisms to manage operational, financial and legal risks.

The role of legal expertise in the MiCA implementation process is key. Regulated United Europe (RUE) provides professional support at all stages of adaptation to the new requirements. Our experts:

• Conduct a legal audit of the company and develop a compliance strategy;
• Assist in preparing and filing required documentation with regulatory agencies;
• Advise on token classification and interactions with regulators;
• Support the implementation of risk management and user protection procedures.

RUE also offers long-term support, providing companies with up-to-date information on legal changes and helping them to quickly adapt to new standards. With our assistance, your business processes will be compliant with all MiCA requirements, creating a solid foundation for successful development in the cryptoasset market.

 How can Regulated United Europe help with MiCA regulation for Non-Fungible Token (NFT)?

The introduction of MiCA Regulation (Markets in Crypto-Assets Regulation) was an important step in establishing a legal framework for the regulation of the crypto-asset market in the European Union. Although MiCA focuses on utility tokens, asset-referenced tokens and electronic money tokens (EMTs), certain provisions of the regulation may affect Non-Fungible Tokens (NFTs). Successful compliance with the new requirements therefore becomes strategically important for projects in this area.

Regulated United Europe (RUE) provides comprehensive support to NFT projects, helping to overcome regulatory complexities and minimise risk. Our approach is based on an understanding of the local legislative differences that remain even within the overall MiCA regulation. This is particularly important as the requirements for launching NFT projects can vary significantly from one EU country to another.

The first step in launching an NFT project under MiCA is to select the appropriate jurisdiction. Even with the same basic standards set by MiCA, the differences between EU member states can be significant. For example, France and Germany show a high degree of readiness to implement MiCA and already have mechanisms in place to regulate cryptocurrency assets. Jurisdictions such as the Czech Republic or Luxembourg offer loyal conditions for crypto startups and are known for their crypto-friendly policies. Obtaining a Crypto license in the Czech Republic is a key advantage for businesses looking to operate in a stable, regulated environment with favorable conditions for growth.. At the same time, countries with less developed digital infrastructure, such as Romania or Croatia, may take more time to adapt.

RUE conducts an in-depth analysis of your business model and technical token architecture to determine the most suitable country for your project. We take into account factors including the maturity of the cryptocurrency market, the availability of tax incentives, the timeline for MiCA adaptation and the level of interaction with local regulators. Our recommendations are aimed at minimising administrative barriers and ensuring a favourable environment for your business development.

Projects working with NFTs often face legal uncertainties, as the uniqueness of such tokens can lead to their classification in different legal categories. For example, if an NFT provides access to financial instruments or assets, it may be subject to more stringent MiCA requirements. RUE helps you structure your project so that it complies with MiCA requirements and avoids potential legal conflicts. We ensure that all necessary documentation is prepared, including a whitepaper, analyse the legal status of tokens and advise on their classification.

Licensing is an important step in starting an NFT project in the EU. In some countries, the licensing process may be faster and less bureaucratic, such as in Estonia or Cyprus. At the same time, in Germany or France, regulators may require stricter standards of transparency and investor protection. Regulated United Europe provides preparation and application services, liaises with regulators and ensures that your project is fully compliant with all relevant standards.

An important aspect is the operational performance of NFT projects once they are launched. MiCA requires compliance with risk management standards, protection of user data and transparency of operations. RUE offers its clients assistance in developing internal procedures, building internal control systems and preparing regular reporting to regulators. We also provide legal support at all stages of business development, helping to adapt to changing legal requirements.

Launching and developing an NFT project in the MiCA environment requires a highly competent and strategic approach. Regulated United Europe provides a unique opportunity to benefit from the expertise of professionals who are at the forefront of regulatory changes in the EU. We help our clients overcome legal challenges by selecting the most appropriate jurisdiction and ensuring that projects are fully compliant with MiCA requirements.

Узлы блокчейна (или ноды) являются основой любой децентрализованной сети. Они выполняют ключевые функции, такие как проверка транзакций, хранение данных и поддержание консенсуса в сети. Введение Положения о рынках криптоактивов (MiCA), принятого Европейским союзом в 2023 году, знаменует собой важный шаг в регулировании транзакций с участием узлов блокчейна для обеспечения безопасности, прозрачности и защищенности экосистемы цифровых активов.

MiCA устанавливает требования к узлам блокчейна, направленные на минимизацию рисков транзакций и защиту участников сети. Ключевые положения, влияющие на узлы, включают следующие аспекты:

1. Обязательная регистрация и лицензирование. Поставщики услуг, эксплуатирующие узлы в коммерческих целях, обязаны зарегистрироваться в регулирующих органах ЕС. Это касается, например, операторов узлов, предоставляющих услуги эмитентам криптоактивов или торговым платформам.
2. Transparency of operations. MiCA requires node operators to provide full information about their operations, including technical infrastructure, consensus algorithms and possible risks. This helps to increase confidence in network operations.
3. Ensuring data security. Nodes are required to implement robust measures to protect data, including encryption, backup mechanisms and prevention of unauthorised access. This is especially true for nodes that handle sensitive data or large volumes of transactions.
4. AML and KYC Nodes involved in transaction processing must maintain anti-money laundering (AML) and user identification (KYC) procedures. This is aimed at preventing the blockchain from being used for illegal activities.
5. Legal Responsibility. Node operators are responsible for compliance with regulatory requirements. They may face sanctions or fines if they are found to be in breach.

On the one hand, MiCA implementation may create additional challenges for node operators, especially those operating within public decentralised networks. Licensing and transparency requirements may entail significant adaptation costs. However, on the other hand, unified regulation offers opportunities to build trust among institutional investors and users, which may encourage further blockchain technology development in Europe.

Blockchain nodes play a key role in ensuring the resilience and functionality of decentralised systems. The MiCA Regulation creates a framework for their professionalisation, raising standards of security, reliability and transparency. In the long term, this facilitates the integration of blockchain technology into traditional economic processes and the expansion of its use in various industries.

 What is Node

A Node is a key component of this infrastructure without which the blockchain would not function. A node in the context of blockchain is a computer or device connected to the blockchain network that performs data storage, validation, and transmission functions. Nodes are the fundamental building blocks that support the stability and decentralisation of the network. Each node communicates with other nodes to create a reliable and secure network without a central intermediary.

Nodes fulfil several key functions in a blockchain. First of all, they store a copy of all transactions occurring on the network, making the blockchain resilient to data loss. Nodes authenticate transactions using consensus algorithms such as Proof of Work (PoW) or Proof of Stake (PoS). They communicate with each other to keep the network updated and synchronised. The distributed nature of the nodes makes the network resilient to attack, as attackers would need to compromise most nodes simultaneously.

There are several types of nodes, each of which plays a different role in the blockchain ecosystem. Full Nodes store a complete copy of the blockchain, including all data since its creation. These nodes are involved in transaction verification and validation, providing a high level of security for the network. Light Nodes store only a portion of the blockchain data needed to validate transactions and depend on Full Nodes for complete information. Mining Nodes participate in the mining process by creating new blocks and being rewarded for adding them to the blockchain. Masternodes perform additional functions, such as providing transaction privacy or managing voting in Decentralised Autonomous Organisations (DAOs). Archive Nodes are designed to store old versions of blockchain data and make them available on demand.

Nodes play a critical role in maintaining the resilience, transparency, and security of the blockchain. Through a distributed architecture, nodes provide decentralisation, eliminating a single point of failure and making the blockchain resilient to censorship and external interference. Even if some nodes fail, the remaining nodes will continue to keep the network running. Distributed data storage and consensus mechanisms prevent fraudulent activities such as double-dipping. Nodes also contribute to network scalability by handling a large number of transactions by increasing the number of participants.

Nodes are thus an integral part of the blockchain, ensuring its operability, security and resilience. Understanding the role and function of nodes is key for those who want to participate in blockchain projects, whether developing, mining or using decentralised applications (dApps). In an era of digital transformation, nodes continue to play a central role in shaping the future of decentralised technologies.

How can Regulated United Europe help with MiCA regulation for Node?

With the implementation of MiCA Regulation (Markets in Crypto-Assets Regulation), companies dealing with the infrastructure elements of blockchain, including Nodes, face the need to comply with new regulatory standards. While MiCA does not explicitly regulate Nodes, their role in supporting cryptoasset transactions makes them an important link in the chain. Not only legal compliance, but also the trust of customers and partners depends on the successful implementation of MiCA. Regulated United Europe (RUE) provides comprehensive support for companies developing or managing network nodes, helping to adapt their business models and operational processes to MiCA requirements.

MiCA introduces uniform rules for the regulation of cryptoassets in the European Union, but their implementation is carried out at the national level, which leads to differences in approaches and adaptation timeframes. For example, Germany and France already have well-established practices in place to regulate the crypto industry, which can speed up the process of integrating new regulations. In countries such as Romania or Bulgaria, the adaptation process may take longer. Choosing the right jurisdiction to host and operate network nodes is key to minimising legal risks.

The regulation of network nodes in the context of MiCA involves several aspects:

• Data Protection. Network nodes are often involved in processing transaction-related information. Compliance with data protection standards such as GDPR is mandatory for companies managing nodes.
• Alignment with regulatory requirements. MiCA requires transparency of operations and protection of users, which implies the implementation of robust governance and monitoring procedures.
• Risk Management. Network nodes are a critical piece of infrastructure and their disruption can affect the stability of the entire ecosystem. Effective risk management is a key requirement for MiCA compliance.

RUE offers the following services for companies working with network nodes:

1. Selecting the right jurisdiction. We analyse your company’s business model and the specifics of its operations to select the EU country that provides the best conditions for MiCA compliance and minimises administrative barriers.
2. Legal audit and risk analysis. Our experts audit your current processes to identify areas requiring adaptation. This helps minimise risks and avoid penalties.
3. Developing and implementing procedures. We create bespoke policies and procedures that comply with MiCA requirements, including risk management, data protection and secure operations.
4. Documentation preparation. Our specialists help prepare and submit the necessary documents to obtain permits and licences in the chosen jurisdiction.
5. Training and support. We provide training for company employees to ensure they understand the MiCA requirements and can work effectively in compliance. We also provide long-term support in dealing with regulators.

Working with network nodes requires not only technical competence but also a strategic approach to fulfil legal requirements. Regulated United Europe helps its clients adapt to change, minimise legal risks and build user trust. We offer personalised solutions that help companies successfully integrate into the regulated crypto ecosystem of the European Union, ensuring their stable development and MiCA compliance.

MiCA and data protection: GDPR compliance in cryptocurrency projects

With the adoption of MiCA Regulation (Markets in Crypto-Assets Regulation), the European Union has established uniform rules for the regulation of crypto-assets, which provides new opportunities for cryptocurrency projects. However, MiCA implementation is inextricably linked to compliance with the GDPR (General Data Protection Regulation), which regulates the processing of personal data in the EU. Harmonising MiCA and GDPR requirements becomes a key challenge for cryptoasset companies, as both regulations impose serious obligations.

MiCA imposes strict requirements to protect users of cryptocurrency services, including ensuring transparency, risk management and protection of funds. However, crypto projects, especially those that operate custodial wallets, exchanges or network nodes, inevitably encounter the processing of personal data, which makes GDPR compliance mandatory. Companies are required to guarantee the security of user data by implementing encryption technologies, two-factor authentication and other safeguards. It is also important to comply with the principles of data minimisation, collecting only the information necessary to perform functions, and to ensure transparent processing by informing users about the purposes and methods of working with their data.

MiCA strengthens GDPR requirements by adding obligations to disclose data storage risks and to establish mechanisms to protect user funds. Cryptocurrency projects face new obligations as part of the harmonisation of the two regulations. Companies must conduct data protection impact assessments (DPIAs) when large amounts of personal data are to be processed or innovative technologies are to be used. The appointment of a data protection officer (DPO) is also required to ensure compliance with MiCA and GDPR. The introduction of risk management processes becomes mandatory, including the development of procedures to protect users’ data and ensure their rights to access and erase data where this does not contravene MiCA requirements.

Regulated United Europe (RUE) provides comprehensive MiCA and GDPR compliance support for cryptocurrency projects. Our team of experts assists with due diligence, analysing company processes for compliance and identifying potential risks. We develop internal policies and procedures for data processing and user protection, create documentation for interaction with regulators, including data protection reports and internal regulations. We also train employees so they can effectively comply with MiCA and GDPR requirements. Our long-term support helps projects adapt to changes in legislation, minimising risk and building trust with users and investors.

Соответствие MiCA и GDPR — это не только необходимость, но и стратегическое преимущество для построения доверия с пользователями и инвесторами. Regulated United Europe помогает компаниям внедрять инновации, сохраняя высокие стандарты защиты данных и соответствия. С нами ваш бизнес может успешно работать в новом нормативном ландшафте Европейского Союза.

MiCA (Markets in Crypto-Assets) is a new European Union regulation aimed at establishing a legal framework for crypto-asset transactions. One important aspect of MiCA is its impact on cryptocurrency mining, as the regulation addresses sustainability, energy efficiency and environmental protection.

The MiCA regulation contains provisions aimed at increasing transparency and setting standards for all participants in the crypto market, including mining companies. An important part is the requirement to provide data on the environmental impact of operations. This is particularly relevant for mining, which in some cases requires large amounts of electricity, which may conflict with the European Union’s climate goals.

For mining companies, MiCA introduces the following key changes:

1. Reporting and transparency: Companies must provide detailed information on their energy costs and environmental impacts. This is aimed at reducing negative climate impacts and adopting more sustainable mining practices.
2. ESG (Environmental, Social, Governance) compliance: Mining projects must comply with sustainability principles, which may affect the choice of technologies and energy sources.
3. Licensing and registration: The Regulations require that companies engaged in mining activities register with the competent authorities and obtain appropriate licences. This is aimed at preventing illegal activities and ensuring transparency of operations.
4. Ensuring investor protection: Mining companies are required to provide guarantees about the reliability of their operations, which reduces risks for investors and increases confidence in the industry.

MiCA regulation does not explicitly ban mining, but it does require strict standards. This creates challenges for companies operating in highly regulated regions, but it also opens up opportunities for innovation. Companies that adopt energy-efficient technologies and utilise renewable energy sources will be able to gain a competitive advantage.

MiCA thus represents an important step towards creating a transparent and sustainable market for cryptoassets. For mining companies, this means the need to adapt to the new requirements, which may require significant investments in modernising equipment and changing business models. However, compliance with these rules will strengthen market positions and gain the trust of both investors and regulators.

 What is Mining?

Mining is the process of creating new blocks in a blockchain and validating the transactions they contain. This process underpins the operation of decentralised networks such as Bitcoin and Ethereum and ensures their security and stability.

Mining involves the use of complex mathematical algorithms to solve cryptographic problems. The computers involved in this process are called miners. Miners are rewarded in the form of cryptocurrency for successfully adding a new block to the blockchain. This process requires significant computing resources and electricity.

The main functions of mining are:

1. Transaction Confirmation: All transactions on the blockchain network must be verified and validated. Miners authenticate transactions and aggregate them into blocks.
2. Creating new blocks: Miners add new blocks to the blockchain, which ensures the continuity of the network.
3. Security: Solving complex mathematical problems makes the blockchain secure against external attacks such as double debit attempts.

There are several types of mining:

• Proof of Work (PoW): This is the most common method used in the Bitcoin It requires significant computing power to solve complex problems.
• Proof of Stake (PoS): A more energy efficient method where miners create new blocks based on the number of coins they hold and block on the network.
• Cloud Mining: Remote mining where users rent equipment from specialised companies.

The mining process faces a number of challenges, such as high equipment costs, significant power consumption and increasing complexity. These factors create barriers to entry for new entrants and favour the consolidation of capacity in the hands of large companies.

The introduction of regulatory initiatives such as MiCA adds an additional dimension. Mining companies are required to comply with environmental standards and provide data on their environmental impact. This encourages a shift to more energy efficient technologies and the use of renewable energy.

Despite the challenges, mining remains an important part of the blockchain ecosystem. It ensures its functioning, security and sustainability. As technology evolves and regulation tightens, mining continues to adapt and remains central to the world of cryptocurrencies.

How can Regulated United Europe help with MiCA regulation for Mining?

With the implementation of MiCA Regulation (Markets in Crypto-Assets Regulation), cryptocurrency mining companies face the need to comply with the new regulatory standards of the European Union. Although MiCA does not directly regulate the activities of mining projects, its provisions address aspects related to transparency of operations, risk management and compliance with data protection requirements. A strategy that takes into account the legal and administrative specificities of different EU jurisdictions is necessary for the successful launch and development of mining projects. Regulated United Europe (RUE) provides expert support at all stages, helping to adapt the business models of mining companies to MiCA requirements.

MiCA establishes uniform rules for the regulation of cryptoassets in the EU, but the implementation of these rules takes place at the level of individual member states. As a result, adaptation times and requirements can vary significantly between countries. For example, Germany and France have highly developed regulatory frameworks, allowing companies to integrate more quickly into the new environment. In other countries, such as Bulgaria or Romania, the MiCA implementation process may take longer, but these jurisdictions may offer more attractive conditions for mining projects due to low energy costs or favourable tax regimes. Choosing the right jurisdiction to implement a mining project becomes a key success factor.

For mining projects, the main challenges in the context of MiCA are ensuring transparency of operations, compliance with data protection standards and risk management. Companies must implement systems to document their processes to comply with MiCA. This includes developing internal documentation, data protection policies and risk management procedures. In addition, mining projects, especially those involved in supporting blockchains or offering related services, must take into account the GDPR provisions governing the processing of personal data. This imposes additional obligations, such as conducting a data protection impact assessment (DPIA) and appointing a data protection officer (DPO).

Regulated United Europe provides its clients with a full range of services to successfully adapt mining projects to MiCA. We start with a due diligence, which allows us to identify areas that require adaptation and minimise regulatory risks. Our experts help develop a jurisdiction selection strategy that takes into account the economic and regulatory specificities of different EU countries. We also create customised policies and procedures for mining companies to ensure compliance with MiCA and GDPR requirements.

Preparing documentation for interaction with regulators is an important stage. RUE helps to prepare and submit all necessary documents, including risk reports, internal regulations and applications for licences. In addition, we provide training for company employees so that they are ready to work under the new regulatory standards.

By partnering with Regulated United Europe, companies have access to unique expertise to effectively meet the challenges of MiCA implementation. We offer long-term support by monitoring regulatory changes and helping companies adapt to the new requirements. Our goal is to ensure your mining projects are sustainable in the regulated landscape of the European Union.

The Markets in Cryptoassets Regulation (MiCA) represents an important step in the regulation of cryptoassets in the European Union (EU). Among the key aspects of MiCA are its provisions relating to electronic money tokens (EMTs). Electronic monetary tokens are a type of stablecoin linked to the value of official currencies (fiat currencies) such as the euro or the US dollar. Their main purpose is to provide value stability in the cryptoasset world.

According to MiCA, EMTs are digital assets intended for use as a means of payment and denominated in the value of an official currency. The main characteristic of EMTs is their stability, which is ensured by their peg to the exchange rate of a particular currency. MiCA categorises EMTs as a type of stablecoin, along with asset-backed tokens (ARTs). Regulatory attention to EMTs is due to their potential for use in mass payment systems and their significant impact on financial stability.

MiCA imposes strict requirements on companies issuing electronic cash tokens. EMT issuers are required to obtain a licence to carry out their activities. This involves registering with the supervisory authorities of an EU Member State and meeting minimum capital and operational requirements. Issuers are required to provide reserves equivalent to the value of tokens issued. Reserves must be held in highly liquid assets, such as deposits with EU banks or government bonds with minimal credit risk. EMT issuers should provide users with full and transparent information on the mechanism of tokenisation, how reserves are secured and potential risks. The main tool is a white paper, which is subject to mandatory approval by the regulator. MiCA prescribes measures to protect the rights of EMT holders. This includes the right to redeem tokens in fiat currency at any time and access to remedies in the event of issuer default.

MiCA enshrines the right of national regulators and the European Securities and Markets Authority (ESMA) to supervise EMT issuers. This includes monitoring compliance with reserve requirements, controlling disclosure of information, applying sanctions for violations, including suspension of token issuance or revocation of licences.

The adoption of MiCA and the establishment of clear rules for EMTs aim to achieve the following objectives. Regulatory measures ensure user confidence in EMTs by increasing transparency and minimising operational risks. Clear reserve requirements and issuer oversight reduce the risks of systemic misconduct. MiCA promotes the development of the cryptoasset ecosystem by providing legal certainty and incentivising the adoption of new financial technologies.

Despite its many benefits, EMT regulation faces a number of challenges. For small and medium-sized issuers, it may be economically difficult to comply with strict regulatory standards. The introduction of stringent regulations in the EU could lead issuers to migrate to more leniently regulated jurisdictions. The rapidly changing nature of the crypto industry may make regulations less relevant by the time they are fully implemented.

The MiCA Regulation establishes a foundation for the regulation of electronic money tokens, creating a safe and predictable legal environment for market participants. Despite the existing challenges, MiCA opens new opportunities for the development of cryptocurrency payments in the EU and building user confidence. EMT issuers complying with the new regulation will be able to benefit from legal certainty, strengthening their market position and contributing to the long-term development of the digital economy.

What is Electronic Money Token (EMT)?

Electronic Money Tokens (EMTs) are a form of digital assets that are electronic money issued and regulated under payment services and electronic money legislation. EMTs provide access to stable and liquid funds backed by a fiat currency such as the euro, dollar or other national currency.

These tokens are pegged to the value of traditional currency at a 1:1 ratio, which ensures their stability. EMT issuers are subject to strict regulatory requirements, making them a trusted instrument. Issuance is only by licensed institutions and the use of blockchain technology ensures transparency, security and efficient transactions.

The advantages of EMTs include their stability, availability for instant cross-border transfers and payments, transparency of transactions thanks to blockchain, and the ability to integrate with the traditional financial system. They are governed by European Union directives and regulations such as the Payment Services Directive (PSD2) and the Cryptoasset Regulation (MiCA). Issuers are required to obtain a licence, maintain reserves in fiat currency equivalent to the volume of EMTs issued, and report to supervisory authorities.

EMTs are used in international transfers, e-commerce, decentralised finance (DeFi) and for payments at physical points of sale. They contribute to the development of the digital economy by combining the advantages of traditional finance and new technologies. The prospects for their development depend on improvements in the regulatory framework, the level of user and business confidence, and further improvements in security, collateralisation and transparency standards.

E-money tokens are an innovative instrument that combines the reliability of traditional money with the advantages of digital technology. They are becoming an important element of the modern financial system, contributing to its digital transformation.

Which countries will be affected by Mica?

With the MiCA Regulation (Markets in Crypto-Assets Regulation) coming into force, the European Union has taken a significant step towards creating a single regulated market for crypto-assets. The new rules will affect all 27 EU member states, each of which is required to implement and adapt MiCA regulations at a national level. However, despite the common framework, the process of implementing MiCA in different states will have its own peculiarities. These differences make choosing the right jurisdiction a key factor for the successful implementation of crypto projects.

The MiCA Regulation will affect all European Union member states, including 27 states that will be required to adapt their national legislation to meet the requirements of the regulation. These countries include:

In addition to EU member states, MiCA can impact European Economic Area (EEA) countries such as Norway, Iceland and Liechtenstein, which often follow EU regulation

MiCA aims to establish harmonised regulation of cryptoassets, including Electronic Money Tokens (EMT), utility tokens and asset-referenced tokens. However, implementation of the new regulations is left to member states, leading to variability in timing and detail. Some countries, such as Germany and France, already have well-developed cryptocurrency legislation and can adapt more quickly to the new standards. Others, like the Czech Republic and Luxembourg, due to their reputation as crypto-friendly jurisdictions, are also willing to accept projects with minimal barriers. On the contrary, in countries with less developed cryptocurrency infrastructure, such as Bulgaria or Romania, MiCA adaptation may take longer.

Differences in adaptation timeframes relate not only to administrative readiness, but also to tax policy. For example, in Estonia, which has a highly developed digital ecosystem, entrepreneurs may encounter favourable conditions for startups, including incentives and transparent tax regulations. At the same time, countries with more complex tax systems, such as Italy or Spain, may face additional financial barriers to launching crypto projects.

In addition to taxes, licensing and reservation requirements for tokens remain a key factor. For example, for Electronic Money Tokens (EMT), MiCA requirements oblige issuers to provide a clear description of the tokens, ensure an appropriate level of reservation and maintain compliance with transparency standards. In some countries, regulation of financial reserves may be stricter, making it more difficult to obtain a licence.

Another aspect is co-operation with local regulators. Germany, as one of the EU’s leading economies, has a long history with BaFin, which already has competence in digital assets. France, with its Autorité des marchés financiers (AMF), is also showing willingness to implement MiCA. On the other hand, regulators in smaller countries such as Cyprus or Slovenia may take more time to prepare for the new regulation.

MiCA will also affect countries in the European Economic Area (EEA), including Norway, Iceland and Liechtenstein. These states, although not part of the EU, are required to comply with a significant portion of EU regulations. Liechtenstein, for example, is already one of the leaders in cryptoasset regulation thanks to its Blockchain Act, making it an attractive destination for DeFi projects.

For international crypto projects planning to launch under MiCA, understanding the local differences between EU countries becomes critical. Choosing the right jurisdiction will minimise administrative, financial and legal risks, ensuring a smoother licensing and market entry process.

Regulated United Europe (RUE) offers its clients detailed analyses of jurisdictions under MiCA. We take into account the specific legislation, tax incentives, adaptation timeframes and interaction with regulators in each EU country to offer the best solution for your project. With our expertise and in-depth knowledge of the local market, we help clients choose the jurisdiction that best suits their business objectives and minimises legal risks. 

How can Regulated United Europe help with MiCA regulation for Electronic Money Token (EMT)?

With the MiCA Regulation (Markets in Crypto-Assets Regulation), the European Union has established a legal framework for regulating the cryptocurrency market, including Electronic Money Tokens (EMTs). This creates a transparent business environment and safeguards for users, but the process of complying with the new requirements can be complex and require significant effort. Regulated United Europe (RUE) offers professional support at all stages of your EMT project, tailored to the legislative specificities of a particular EU country.

Although MiCA sets a single standard for cryptocurrency regulation in the European Union, adaptation occurs at the level of individual member states. Differences may concern the timing of implementation of MiCA requirements, local licensing peculiarities, national tax regimes, practical implementation of supervision of the rules. Understanding these aspects and choosing the best jurisdiction for your project are key factors for a successful launch.

RUE analyses your business model, development plans and token specifications to determine the most suitable country to register and launch your project. We assess the level of maturity of the local crypto market, the speed of MiCA adaptation in the jurisdiction, the attractiveness of the tax regime, and the loyalty of regulatory authorities to innovation.

An EMT project requires a licence under MiCA. We provide a full range of services: preparation and submission of applications to supervisory authorities, development of internal procedures compliant with MiCA requirements, preparation of transparency and disclosure documents (whitepaper), advising on capital and provisioning requirements.

We conduct a legal audit of your project to make sure it meets all MiCA requirements, including proper tokenisation, protection of user funds, and compliance with data security standards. We also take into account local laws and regulations to avoid legal risks and reduce administrative barriers.

In addition to obtaining a licence, the successful functioning of a project requires compliance with operational standards. RUE helps build risk management processes, organise reporting to regulators, and establish effective internal control systems.

We not only help with the initial integration of MiCA, but also provide legal support services as your business develops. Our experts are ready to update your strategy in accordance with changes in legislation, protect your company’s interests when interacting with regulators, and assist in resolving disputes.

Launching an Electronic Money Token project under MiCA requires a high level of expertise and attention to detail. Regulated United Europe provides you not only legal support, but also strategic guidance to help you overcome the complexities of MiCA adaptation in different jurisdictions of the European Union. By contacting us, you get a reliable partner for the successful launch and development of your crypto project in the EU.

The MiCA (Markets in Crypto-Assets) regulation is a European Union legislative initiative aimed at establishing a clear legal framework for transactions in crypto-assets, including decentralised financial systems (DeFi). The regulation aims to ensure transparency, sustainability and the protection of market participants’ interests, while fostering innovation in blockchain technology.

Decentralised Finance (DeFi) is an ecosystem of financial services provided through decentralised blockchain-based applications (dApps). These include lending, asset exchange, insurance and investments, operating without traditional intermediaries such as banks. What makes DeFi unique is their decentralised nature, which gives participants full control over their assets.

MiCA introduces a number of changes that directly affect the DeFi sector. First of all, the regulation introduces the concept of “cryptoasset service providers” (CASPs), which includes DeFi projects. Key aspects of MiCA regulation for DeFi:

1. Transparency: DeFi projects are required to provide full information about their operations, including smart contract mechanisms, risks and liquidity management. This allows investors to make informed decisions and reduces the risk of fraud.
2. Registration and licensing: Although DeFi projects often avoid centralised structures, MiCA requires their creators or operators to register with EU authorised bodies. This aims to increase accountability and reduce legal risks.
3. Compliance with sustainability standards: DeFi projects using blockchain must consider environmental standards. MiCA incentivises the adoption of energy efficient algorithms such as Proof of Stake (PoS).
4. Risk management: MiCA requires DeFi projects to demonstrate financial and operational risk management arrangements, including liquidity management and protection against hacking.
5. Consumer protection: One of the key areas of regulation is to ensure that users’ rights are protected, including a guarantee of asset recovery in the event of smart contract errors or failures.

On the one hand, the introduction of MiCA may cause certain difficulties for DeFi projects, especially for those operating in jurisdictions with less stringent rules. It may require significant investment in legal and technical adaptation. On the other hand, the regulation helps to create confidence in DeFi as an innovative tool that can attract institutional investors.

One possible impact of MiCA on DeFi is the proliferation of hybrid projects combining elements of decentralised and centralised finance (CeDeFi). Such projects can meet regulatory requirements while retaining the benefits of decentralised solutions.

MiCA thus opens up new opportunities for the integration of DeFi into traditional financial systems by setting clear rules and standards. For companies and projects working in this field, understanding and complying with MiCA will be an important step towards long-term market success.

 What is Decentralized Finance?

Decentralised Finance (DeFi) is an innovative blockchain-based financial services ecosystem that enables direct user interaction without intermediaries such as banks or other traditional financial institutions. DeFi represents one of the fastest growing areas of the digital economy, offering new ways to manage assets, lending, investing and other financial transactions.

DeFi’s core idea is to use decentralised applications (dApps) and smart contracts powered by blockchains such as Ethereum. These tools provide automation and transparency of financial processes, eliminating the need for trust in centralised organisations.

The main components of DeFi

1. Smart Contracts: Smart Contracts are self-executing programmes that automatically execute their terms and conditions. They play a key role in ensuring the transparency and reliability of transactions in the DeFi ecosystem.
2. Decentralised exchanges (DEX): DEXs allow users to exchange crypto-assets directly between each other without the involvement of centralised intermediaries. This reduces the risks of fraud and hacking.
3. Lending and borrowing platforms: Platforms such as Aave and Compound allow users to lend their assets or borrow against cryptocurrency. These processes are fully automated and governed by smart contracts.
4. Stablecoins: Stablecoins are cryptocurrencies linked to the value of traditional assets such as the US dollar. They play an important role in stabilising asset values and reducing volatility.
5. Liquidity pool: DeFi participants can provide liquidity to trading platforms while earning commissions and fees. Liquidity pools ensure the smooth operation of decentralised exchanges.

Benefits of DeFi

1. Decentralisation: DeFi eliminates the need for intermediaries, which reduces costs and increases the availability of financial services.
2. Transparency: All transactions and operations at DeFi are recorded on the blockchain, making them available for audit and verification.
3. Global accessibility: DeFi is available to anyone with an internet connection, regardless of geographical location.
4. Innovation: DeFi provides new financial tools such as flash loans and asset tokenisation that were previously unavailable in traditional financial systems.

DeFi Risks and Challenges

1. Technical risks: Errors in the code of smart contracts can lead to loss of funds or hacks.
2. Regulatory constraints: Because DeFi operates outside of traditional regulation, this can create challenges for compliance with the laws of different jurisdictions.
3. Volatility: The value of cryptoassets used in DeFi can fluctuate significantly, increasing the risks for users.
4. Training and understanding: Using DeFi requires certain knowledge and skills, which may limit its acceptance by a wide audience.

DeFi Perspectives

Decentralised finance continues to attract the attention of investors and developers due to its innovativeness and potential to change the traditional financial system. In the coming years, it is expected that the number of users will grow, new products will emerge, and technologies that ensure the security and usability of DeFi will improve.

For businesses, DeFi opens up opportunities for integrating decentralised solutions into existing processes, as well as creating new business models. However, it is important to consider regulatory and technical risks while developing strategies to minimise them.

DeFi represents not only a challenge to the traditional financial system, but also a platform for its transformation. Companies that are able to adapt and harness the potential of DeFi will have a significant competitive advantage in the digital economy of the future.

How will MiCA affect DeFi projects?

With the implementation of MiCA Regulation (Markets in Crypto-Assets Regulation), decentralised financial platforms (DeFi) are facing dramatic changes in the way they operate. MiCA aims to establish transparency, risk management and protection of crypto users, which significantly affects DeFi’s business models and customer interaction processes.

The regulation of decentralised financial platforms under MiCA is becoming a challenge for the entire ecosystem. DeFi projects based on the use of smart contracts and decentralised protocols are now required to take into account MiCA regulations aimed at protecting users and ensuring transparency. For example, platforms that provide lending, exchange or staking services must document their processes, develop internal risk management policies and comply with data protection requirements, including GDPR provisions. This adds a layer of complexity for traditionally autonomous and decentralised ecosystems.

Among the possible difficulties for the DeFi sector is the need to establish clear governance mechanisms, which contradicts the basic principles of decentralisation. There is also a risk of increased transaction costs due to the need to comply with new standards. For example, projects may have to appoint compliance officers such as a DPO (Data Protection Officer) and implement monitoring systems to ensure compliance.

However, MiCA also opens up opportunities for DeFi. Regulatory recognition can increase trust in such platforms by users and institutional investors. By adhering to security and transparency standards, DeFi projects can enter new markets and attract a wider range of clients. For example, projects operating within licensed jurisdictions such as Estonia or France can position themselves as trustworthy and regulated players.

Examples of DeFi projects successfully adapting to MiCA already demonstrate the importance of a strategic approach. For example, a platform offering decentralised lending has implemented risk management processes and audited its smart contract, enabling it to comply with MiCA requirements. Another decentralised token exchange project has registered operations in a crypto-friendly jurisdiction and attracted investment by increasing the platform’s credibility.

Regulated United Europe (RUE) provides a full range of services to help DeFi projects adapt to MiCA. Our team of experts conducts due diligence, develops a strategy for selecting the optimal jurisdiction and helps create customised policies and procedures to meet MiCA and GDPR requirements. We support the preparation of documentation for interaction with regulators and provide training for employees to work under the new standards.

By partnering with Regulated United Europe, DeFi companies gain access to unique expertise that enables them to successfully adapt to change, minimise regulatory risks and seize new opportunities. Our goal is to ensure your projects are sustainable in the regulated landscape of the European Union.

How can Regulated United Europe help with MiCA regulation for Decentralized Finance ?

With the implementation of MiCA Regulation (Markets in Crypto-Assets Regulation), decentralised finance (DeFi) companies face the need to comply with new regulatory standards of the European Union. MiCA establishes uniform rules for crypto-assets, including DeFi projects, which requires adapting business models and operational processes. Successful launch and development of projects in this area requires a strategic approach that takes into account the legal and administrative peculiarities of different EU jurisdictions. Regulated United Europe (RUE) provides expert support at all stages, helping to adapt DeFi projects to MiCA requirements.

MiCA aims to increase transparency, risk management and protection for users of crypto services, including DeFi. However, the implementation of these rules is left to EU member states, resulting in variability in adaptation timelines and requirements. For example, France and Germany have highly developed regulatory frameworks that can accelerate the integration of DeFi projects. At the same time, countries such as Estonia or the Czech Republic offer crypto-friendly conditions, which makes them attractive for startups. Choosing the right jurisdiction to realise a DeFi project becomes a key success factor.

The main challenges for DeFi projects in the context of MiCA are compliance with transparency standards, operational and legal risk management, and compliance with data protection regulations. Companies are required to document their processes to comply with MiCA, including the creation of risk management policies and data protection procedures. DeFi projects that handle user data must also consider the GDPR provisions governing the processing of personal information. This includes conducting a data protection impact assessment (DPIA) and appointing a data protection officer (DPO).

Regulated United Europe offers a full range of services to help DeFi projects adapt to MiCA. We start with a legal audit to identify areas for change and minimise regulatory risks. Our experts develop a strategy for selecting the optimal jurisdiction based on the economic and legal conditions of different EU countries. We also create customised policies and procedures to ensure compliance with MiCA and GDPR requirements.

Preparing documentation for interaction with regulators is an important step. RUE helps to prepare and submit the necessary documents, including risk reports, internal regulations and applications for licences. In addition, we provide training for employees so that they can work effectively under the new regulatory standards.

By partnering with Regulated United Europe, DeFi companies gain access to unique expertise to help them successfully meet the challenges of MiCA implementation. We offer long-term support, keeping up to date with regulatory changes and helping you to adapt quickly to new requirements. Our aim is to ensure your projects are sustainable in the regulated landscape of the European Union.