Markets in Crypto Assets (MiCA)

The Markets in Crypto Assets (MiCA) is a comprehensive regulatory framework proposed by the European Union (EU) to govern the issuance and provision of services related to crypto assets. MiCA is part of the European Commission’s Digital Finance Strategy and due to take effect beginning in June 2024.

Here are the MiCA regulations in English. (Here are the regulations in each of the official languages of the EU.)  The regulations cover crypto asset issuers, crypto asset offerors, e-money tokens, and asset-referenced tokens. Any company offering crypto assets within the block of 27 nations that make up the European Union will be subject to these regulations.

The regulations require that a "whitepaper" be published by any company offering crypto assets to the public within the European Union.  The whitepaper is somewhat like a "management discussion and analysis" and does include financial information.

Inline XBRL (iXBRL) format will be used for MiCA whitepapers. The European Securities and Markets Authority (ESMA) has made available a Proof of Concept (PoC) to allow market participants to familiarize themselves with Inline XBRL. This PoC includes a draft XBRL taxonomy.

I created an implementation of the MiCA proof of concept.

An estimate of the number of crypto asset offerors and issuers that might be impacted is approximately 20,000. Wikipedia says there are about 20,000 crypto currencies as of 2023. This Forbes list has 11,503. The Motley Fool says there are about 23,000. Investing.com uses the number 10,125. This Forbes article puts the number at 22,932; it also describes the different types.

Auditchain Labs says that they are the first company to publish the required white paper.  Here is an example of a crypto asset white paper for Pacioli.ai.  That Pacioli.ai whitepaper was published using Auditchain Luca.

Here is information about that Pacioli.ai whitepaper:


What I am personally trying to achieve with MiCA is to take advantage of all the GOOD THINGS that the SEC and ESMA have done in terms of XBRL-based digital reporting and leverage those good ideas and to avoid the NOT SO GOOD THINGS. The SEC and ESMA have boldly led the way in XBRL-based digital financial reporting in a very big way. While their follow through in terms of making adjustments to fix glitches leaves something to be desired; the SEC's and ESMA's pioneering efforts are greatly valued.

Additional Information:


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