A utility token is a type of cryptocurrency that is specifically designed to provide access to a particular good or service offered by its issuer. It falls outside the scope of MiCA, which does not regulate DeFI protocols, NFTs, CBDCs, security tokens, or other crypto-assets that are considered financial instruments under MiFID II.
MiCA introduces licensing requirements for three types of entities: crypto-asset service providers (CASP), issuers of asset-referenced tokens, and issuers of electronic money tokens. CASPs will generally need to obtain a license, unless they are already licensed under MiFID as a credit institution. Even if a company already holds a license, they must still notify the relevant authorities if they intend to offer crypto-asset services.
At the member state level, competent authorities will be responsible for supervising CASPs and ensuring compliance with MiCA regulations. CASPs with more than 10 million users will be considered “Significant CASPs” and will be subject to additional monitoring. The European Securities and Markets Authority (ESMA) will also have the power to intervene and impose restrictions or prohibitions on CASPs if they pose a threat to market integrity, investor protection, or financial stability.
