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European Commission Launches Targeted MiCA Review Consultation, 20 May 2026

On 20 May 2026, the European Commission opened a targeted consultation and a public consultation on the review of Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA). The consultations assess whether MiCA remains fit for purpose following full application from December 2024 and invite submissions from digital asset issuers, crypto-asset service providers (CASPs), financial institutions, technology providers, and public authorities. Responses are due by 31 August 2026.

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On 20 May 2026, the European Commission opened two parallel consultation tracks on the review of Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA): a targeted consultation directed at technical and legal experts in the industry, and a public consultation open to individuals and the wider public. Both consultations close on 31 August 2026. The review is required by MiCA's own review mandate and may result in a legislative proposal to amend or complement the Regulation if the Commission's assessment identifies gaps or deficiencies.

MiCA entered into full application in December 2024. Its review clause obliges the Commission to report to the European Parliament and the Council on MiCA's application, accompanied where warranted by a legislative proposal. The targeted consultation addresses the main building blocks of MiCA: the issuance and operation regimes for asset-referenced tokens under Title III and e-money tokens under Title IV; the authorisation and conduct of business requirements for crypto-asset service providers (CASPs) under Title V; and the market abuse and market manipulation provisions under Title VI. Respondents are also invited to address whether MiCA's scope adequately covers decentralised finance protocols and novel asset categories not addressed when the Regulation was adopted in 2023.

CASPs authorised or seeking authorisation under MiCA should use the consultation period to submit evidence on compliance friction points, particularly regarding the CASP authorisation process under Article 59, prudential own-funds requirements, and client asset segregation rules. Asset-referenced token and e-money token issuers should document operational experience under the Regulation, as the Commission's review report will inform whether the Title III and IV requirements are calibrated appropriately. National competent authority positions may also be shaped by the submissions of their supervised entities.

The Commission retains full discretion not to propose legislative amendments if the review concludes MiCA is functioning as intended. The August 31 deadline closes the consultative record; no new submissions will be accepted after that date. The Commission's report, with any accompanying legislative proposal, is expected no earlier than 2027. The European Securities and Markets Authority is conducting parallel technical reviews of MiCA delegated acts and guidelines, which may produce separate amendment proposals on an earlier timeline.

Licentium assists digital asset businesses in preparing and submitting responses to European Commission MiCA consultations and in mapping MiCA compliance positions across authorisation, conduct, and market abuse obligations. Work we undertake includes MiCA advisory, CASP licensing and authorisation, stablecoin issuer compliance, European Commission consultation response preparation, and crypto-assets regulatory strategy.

Source: European Commission, 'Commission seeks feedback on the functioning of EU crypto-assets rules,' 20 May 2026

Crypto Regulatory

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