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European Commission Opens Targeted Consultation on MiCA Review, May 2026

On 20 May 2026, the European Commission launched a targeted consultation on Regulation (EU) 2023/1114, the Markets in Crypto-Assets Regulation (MiCA), running alongside a parallel public consultation. The targeted consultation spans 86 questions across four thematic blocks and invites responses from industry representatives and public authorities. Submissions close 31 August 2026, with results feeding into the Commission's review reports under Articles 140 and 142 of MiCA.

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On 20 May 2026, the European Commission published a targeted consultation on Regulation (EU) 2023/1114, the Markets in Crypto-Assets Regulation (MiCA), which has been fully applicable since 30 December 2024. The Commission launched two parallel consultation exercises. The first is a public consultation open to all market participants and interested parties. The second, the targeted consultation, is directed at industry representatives, national competent authorities, and European Supervisory Authorities. Submissions close on 31 August 2026.

Articles 140 and 142 of Regulation (EU) 2023/1114 require the Commission to submit review reports to the European Parliament and the Council on the functioning of the regulation. The targeted consultation feeds directly into those reports and may lead to a formal legislative proposal to amend MiCA. The consultation spans 86 questions across four thematic blocks: the scope and definitions of MiCA, including possible coverage of decentralised finance and non-fungible tokens; the authorisation and operational requirements for crypto-asset service providers (CASPs); the stablecoin regime for asset-referenced tokens and e-money tokens under Titles III and IV; and simplification of regulatory burdens under the Commission's competitiveness agenda.

CASPs authorised under Title V of MiCA are the primary addressees of the targeted consultation: the Commission is examining whether authorisation procedures, ongoing operational requirements, and cross-border passporting rules are operating as intended. Asset-referenced token issuers and e-money token issuers face scrutiny of reserve asset and liquidity requirements under Titles III and IV. DeFi protocol operators and NFT marketplace operators currently outside MiCA's scope may face expanded coverage if the Commission revises the regulation's definitional boundaries.

MiCA entered into full application only in December 2024, making this review unusually early. The Commission framed the consultation partly as a competitiveness measure aimed at reducing regulatory burdens. Of the 86 questions, approximately 60 relate to potential simplification, indicating that any resulting legislative proposal could simultaneously expand scope and reduce procedural requirements. No deadline for a formal legislative proposal is specified in the consultation document.

Licentium advises digital asset firms on MiCA authorisation, passporting, and regulatory strategy across EU jurisdictions. Work we undertake includes CASP authorisation and licensing, asset-referenced token and e-money token compliance, MiCA readiness assessments, DeFi regulatory monitoring, and engagement with national competent authorities.

Source: European Commission, Targeted Consultation on the Review of Regulation (EU) 2023/1114 (MiCA), 20 May 2026

Crypto Regulatory

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