- As coordinator of MiCA Licensing at Ari10, expert Diana Stetiu has offered an insider perspective on how regulators and the industry are approaching MiCA.
- MiCA sets strict licensing, operational, and governance standards that crypto businesses must meet before entering the EU market.
- Rather than stifling innovation, Stetiu believes MiCA will filter out bad actors and build institutional credibility.
As the EU’s landmark Markets in Crypto-Assets (MiCA) Regulation nears full implementation, industry professionals and observers are coming to terms with the significant changes it brings.
Designed to create a unified regulatory framework for crypto-assets across the EU, MiCA is set to fundamentally transform how crypto businesses operate in the region.
In an exclusive interview with CCN, Diana Stetiu, a blockchain lawyer and expert coordinator of MiCA Licensing at Ari10, emphasized that the era of “build first, comply later” is over.
EU’s MiCA: Credibility, Not Chaos
Stetiu described MiCA as a necessary response to the rapid and “chaotic” growth of the crypto-asset market.
“…Especially as it became clear that the absence of a coherent regulatory framework was creating significant risks for both businesses and consumers,” Stetiu said.
Prior to MiCA, which began its phased rollout in June 2023 and reached full implementation in December 2024, the EU’s regulatory landscape for crypto was fragmented, according to Stetiu.
She explained that MiCA’s primary goal is to bring consistency and legal clarity to the crypto space while safeguarding consumers and supporting innovation.
“This is not just a minor adjustment; it marks a significant step in the maturation of the crypto industry,” she added.
By aligning digital assets with traditional financial oversight, the regulation aims to strengthen market stability and boost consumer confidence.
According to Stetiu, “MiCA is helping to mitigate the risks that have been associated with unregulated or poorly regulated crypto-assets.
But it’s also encouraging innovation by providing businesses with a clear path to operate legally within the EU.”
Raising the Bar for CASPs
One of MiCA’s most immediate impacts is the strict requirements it introduces for Crypto-Asset Service Providers (CASPs).
“Gone are the days of the ‘launch fast, figure it out later’ approach,” Stetiu said.
Under MiCA, any business providing crypto-asset services must be authorized by a national competent authority.
However, there’s a significant advantage for those who comply:
“Once you’re licensed in one Member State, you can passport across the entire EU—just like a traditional investment firm under MiFID II.”
“That’s a huge benefit, but it comes with serious responsibilities,” Stetiu added.
These responsibilities begin with establishing a genuine operational presence within the EU.
“The head office, decision-making, and actual operations need to be located here,” she explained.
The quality of leadership is also under scrutiny.
“MiCA requires that the people running these companies are ‘fit and proper’—meaning they’ve got the experience, integrity, and track record to do the job,” Stetiu added.
Compliance structures must reflect a serious commitment to risk management, audit functions, and rigorous reporting systems.
Perhaps most notably, MiCA enforces strict rules for safeguarding client assets.
CASPs are required to keep crypto-assets securely held, segregated from company funds, and fully protected in the event of insolvency or mismanagement.
“One of the clearest lessons from the FTX collapse is the danger of commingling client assets with operational funds—MiCA aims to eliminate that risk altogether,” said Stetiu.
Will the EU’s MiCA Stifle Innovation?
Although MiCA has been lauded by some for bringing clarity to the EU’s crypto regulatory landscape, not everyone is convinced.
Several industry leaders have raised concerns that the regulation’s stringent requirements could hamper technological progress.
Seth Hertlein, Global Head of Policy at Ledger, believes MiCA is another example of the EU overregulating.
“In the end, MiCA will be yet another millstone the EU hung around its own neck,” Hertlein wrote. “When it comes to global competitiveness, overregulating is the surest way to lose, and no one is better at it than the EU.”
However, Stetiu has remained more optimistic.
“MiCA won’t stifle innovation—it will filter out the noise. While it may not be perfect, it’s a pivotal step toward institutional maturity in the European crypto space,” she told CCN.
By setting clear expectations, she believes MiCA will help eliminate bad actors and build long-term credibility.
“In the long run, that’s a win not just for the market, but especially for retail investors, who deserve a safer and more transparent environment to participate in,” she said.
Ending the Era of Regulatory Ambiguity
With MiCA now in force, the regulatory landscape has shifted dramatically. Stetiu believes it marks the end of “build first, comply later.”
“The future of crypto in Europe is about credibility, not chaos,” said Stetiu.
“MiCA sets out a clear framework—and if CASPs want to grow sustainably, they need to invest in long-term compliance from day one,” she said. “It’s not a burden; it’s a signal that you’re here to stay.”
Stetiu also highlighted an often-overlooked component of the regulation: market abuse.
In traditional finance, market abuse covers practices such as insider trading, market manipulation, and the unlawful disclosure of inside information.
“Under MiCA, there is a dedicated title on market abuse specifically for crypto-asset markets, which is a regulatory first in Europe,” she explained.
This framework extends the EU’s existing Market Abuse Regulation (MAR) to the crypto sector.
Even tokens that aren’t classified as financial instruments, but are offered publicly or traded on centralized exchanges within the EU, fall under its scope.
Stetiu pointed to guidance from the European Securities and Markets Authority (ESMA), which clarifies that those involved in crypto trading—categorized as Persons Professionally Arranging or Executing Transactions (PPAETs)—must monitor and report market abuse.
This includes order execution, portfolio management, exchange operations, and proprietary trading. As a result, the burden of compliance weighs heavily on CASPs operating trading platforms.
“They’ll be required to: monitor trading activity for market manipulation like pump-and-dumps or wash trading, prevent insider trading, especially in the context of token listings, implement reporting mechanisms for suspicious transactions, ensure employees do not misuse privileged information, and, importantly, mitigate the risk of rug pulls by vetting token issuers more thoroughly,” said Stetiu.
Exchanges must also implement strong internal governance frameworks, including whistleblower systems and transparent conduct rules for employees.
A New Standard for Compliance
When asked to summarize the new expectations for crypto exchanges under MiCA, Stetiu said:
“Exchanges can’t just be marketplaces anymore—they’re now gatekeepers.”
According to Stetiu, MiCA expects exchanges to implement:
- Automated surveillance tools to detect suspicious trading behavior
- Listing policies that include KYC/KYB on token issuers and comprehensive risk assessments
- Transparency protocols to ensure all relevant token information is publicly available
- Governance measures such as compliance officers and whistleblower protections
However, the MiCA expert believes implementation matters just as much as policy.
“They need to demonstrate to the regulator that these aren’t just paper policies—they’re being implemented in practice,” Stetiu said.
