According to TechFlow, Patrick Hansen, Circle’s EU Strategy and Policy Director, gave a detailed explanation of the scope of application of the MiCA regulations, mainly including:
- Utility tokens designed and used within a specific network are not subject to MiCA regulations; crypto-asset products with fewer than 150 users in each EU member state or only for qualified investors, with a total value of less than €1 million in a 12-month period, are also not within the jurisdiction of MiCA.
- Non-transferable digital assets are not subject to the MiCA regulatory framework. Notably, lending and borrowing of crypto assets, including e-money tokens, are explicitly excluded from the regulatory scope; crypto asset services provided in a “completely decentralized manner” are also not regulated. Similarly, crypto assets without an identifiable issuer and lacking a white paper are also not within the scope of MiCA regulation.
- While MiCA regulations do not include all NFTs, digital art or collectibles, those that are widely distributed series or collectibles are still within the scope of this regulatory framework.
- Exemptions also apply to hardware or software providers of non-custodial wallets. Intra-group transactions, public entities, international organizations such as the International Monetary Fund (IMF) or the Bank for International Settlements (BIS), and CBDCs are also excluded from MiCA's regulations.