MoonPay Among the First Companies Approved Under MiCA Regulation

In a December 30 announcement, MoonPay stated that the Netherlands Authority for the Financial Markets (AFM) had issued it a license under the EUs Markets in Crypto-Assets Regulation (MiCA), allowing the cryptocurrency company to operate as a licensed crypto business in the Netherlands.

MoonPay is a fintech company that builds payment infrastructure for cryptocurrency. Its range of inbound and outbound products provides seamless conversion between fiat and crypto using all major payment methods, including debit and credit cards, local bank transfers, Apple Pay, Google Pay, and Samsung Pay. According to its introduction, MoonPay serves over 20 million users across 180 countries, supporting 121 tokens.

What is MiCA?

MiCA (Markets in Crypto-Assets Regulation) is the EUs first comprehensive regulation designed to govern the crypto-assets market. It aims to foster cryptocurrency innovation, provide a regulatory framework to mitigate risks associated with digital assets, and ensure financial stability. MiCA requires crypto service providers to obtain authorization and registration from financial authorities in EU member states.

How MiCA Impacts the Crypto Market

MiCA introduces a unified regulatory framework for crypto businesses, reducing policy uncertainties. It offers clear guidelines for market standardization while imposing stricter requirements on individual investors and crypto companies.

For individual investors, MiCA creates a safer market environment by requiring issuers to disclose comprehensive whitepapers and financial information. This transparency allows investors to better understand project risks and make more informed decisions. Patrick Hansen, European Policy Lead at Circle, noted, “MiCA creates a more transparent and credible market environment, attracting more mainstream investment.”

For businesses, MiCAs “EU passport mechanism” is a key highlight. Through this mechanism, companies need only obtain a MiCA license in one member state to legally operate across the entire EU economic area, significantly simplifying cross-border compliance complexities.

However, MiCA also imposes stringent compliance requirements, including establishing a legal entity, meeting minimum capital requirements, and implementing Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures. These obligations may increase operational costs, posing challenges particularly for startups and small to medium-sized enterprises.