Markets in Crypto-Assets Regulation (MiCA)

The markets for crypto-assets have, in recent years, undergone not only rapid technological innovation but also a significant regulatory transformation. In this context, the Markets in Crypto-Assets Regulation (Regulation (EU) 2023/1114), enacted by the European Union, has introduced a comprehensive and harmonised framework for the regulation of crypto-assets across the EU.

MiCA Timeline

• 29 June 2023: Entry into force of the Regulation
• 30 June 2024: Application of the provisions relating to asset-referenced tokens (ARTs) and e-money tokens (EMTs)
• 30 December 2024: Full application of the Regulation

Scope and Regulatory Approach

The MiCA Regulation establishes a comprehensive legal framework governing the issuance of crypto-assets, public offerings, admission to trading, and the activities of crypto-asset service providers. Its principal objectives are to enhance transparency, protect investors, and safeguard the fair, orderly, and efficient functioning of the market. At the same time, MiCA replaces fragmented national approaches within the European Union with a single harmonised regulatory regime.

In particular, the MiCA Regulation introduces rules concerning the following matters:

• Disclosure and transparency requirements, including the preparation of a white paper
• Licensing and supervisory requirements
• Corporate governance, organisational, and internal control obligations
• Investor and customer protection requirements
• Prevention of market abuse and market disruption

In addition, MiCA distinguishes between different categories of crypto-assets and provides specific rules for asset-referenced tokens (ARTs) and e-money tokens (EMTs). In this respect, the Regulation represents a major regulatory development by increasing legal certainty in crypto-asset markets and clarifying compliance obligations for market participants.

Assessment from a Turkish Law Perspective

MiCA approaches crypto-assets not merely as technical or economic instruments, but also as a legal category capable of producing distinct legal consequences and obligations. This reflects a broader international policy trend aimed at bringing crypto-asset markets within a regulated, supervised, and enforceable legal environment.

Although a fully developed body of secondary legislation concerning crypto-assets has not yet been finalised in Türkiye, recent legislative measures have established an important regulatory foundation. In particular, recent amendments to the Capital Markets Law have strengthened the regulatory basis applicable to crypto-asset service providers and conferred substantial supervisory authority upon the Capital Markets Board of Türkiye.

Within this framework, authorisation procedures concerning the establishment and operation of crypto-asset service providers have become increasingly important. Capital adequacy, corporate structure, internal organisation and control systems, risk management, and information technology infrastructure have all emerged as key areas of regulatory focus. In addition, the segregation of client assets from service provider assets has become especially significant from the standpoint of investor protection.

When the emerging Turkish regulatory framework is assessed in general terms, it can be observed that it is, to a considerable extent, aligned with the system established under MiCA. This alignment is particularly notable in relation to licensing procedures, corporate compliance, custodial services, protection of client assets, and supervisory powers.

Practical Implications

The regulatory framework established by MiCA, together with the emerging legislative structure in Türkiye, is of importance not only for businesses established within the European Union but also for those operating in Türkiye and seeking access to the EU market. In this respect, the following practical implications may be highlighted:

• Licensing and authorisation requirements for crypto-asset service providers are likely to become an unavoidable regulatory reality
• Token issuances will need to comply with more robust disclosure, transparency, and documentation requirements
• Corporate structure and compliance mechanisms will continue to develop in a manner comparable to those applicable to traditional financial institutions
• Businesses targeting the European Union market may derive substantial commercial and strategic advantages from alignment with the MiCA regime
• Regulatory requirements applicable to cross-border services are likely to become clearer and more strictly enforced

Legal Risk Perspective

Failure to comply with the evolving regulatory environment may expose market participants to significant legal and commercial risks. These risks may include restrictions affecting licensing, business activities, corporate administration, and market access, as well as reputational consequences in customer and investor relations.

For this reason, participants in the crypto-asset market should not only comply with the rules currently in force but also closely consider the broader regulatory direction in which the market is developing. Such an approach is essential for establishing an efficient, sustainable, and forward-looking business strategy.

Conclusion

In conclusion, MiCA constitutes a comprehensive regulatory regime with implications extending beyond the European Union to the broader global crypto-asset market. Recent legislative developments in Türkiye indicate that the domestic regulatory framework is evolving in a direction broadly comparable to that of the European Union.

Accordingly, both market participants active in the crypto-asset sector and those considering investment in crypto-assets should carefully take into account the MiCA framework as well as current developments under Turkish law.