Key takeaways
- MiCA is the EU's Regulation (EU) 2023/1114 on markets in crypto-assets. It applies in Iceland through the EEA Agreement via Act No. 101/2025, which took effect on 1 January 2026.
- Companies that provide crypto services need a licence, and in Iceland the Central Bank of Iceland supervises them. Since 1 July 2026, only firms licensed under MiCA may provide such services in Iceland.
- MiCA also sets rules for crypto issuers, white papers, stablecoins and market abuse, and requires clear information for consumers.
- MiCA regulates the companies, not the price. Crypto prices still swing, and no deposit guarantee covers crypto.
Contents
MiCA is a shared European law on crypto. It sets rules for companies that issue crypto or provide crypto services, such as buying, selling and safekeeping. MiCA has applied in Iceland since 1 January 2026, and the Central Bank of Iceland checks that the rules are followed.
This article covers what the rules include, what they don't do and what they mean for you as someone buying CryptocurrencyCryptocurrencyA digital currency secured by cryptography and recorded on a shared ledger, with no bank or government issuing or controlling it. in Iceland.
What is MiCA?
MiCA stands for Markets in Crypto-Assets. Its formal name is Regulation (EU) 2023/1114, and it was adopted on 31 May 2023. It has applied in full across the European Union since 30 December 2024. The rules on stablecoins took effect six months earlier, on 30 June 2024.
The law uses the term Crypto-assetCrypto-assetThe legal term for cryptocurrencies and tokens, meaning a digital representation of value or rights that can be transferred and stored on a blockchain.. Under MiCA, a crypto-asset is a digital representation of a value or a right that can be transferred and stored electronically using distributed ledger technology or similar technology. Bitcoin, ether and stablecoins all fit this definition.
Before MiCA, each country had its own rules. In Iceland, crypto providers only had to register with the Central Bank under the anti-money launderingAnti-money laundering (AML)Rules and measures meant to stop the financial system, including crypto, from being used for money laundering or terrorist financing. act. Registering was like letting the authorities know you exist. A licence is more like a driving licence: you first have to show that you meet the requirements.
How did MiCA become law in Iceland?
Iceland is not in the European Union, but it is part of the European Economic Area (EEA). EU financial market rules are added to the EEA Agreement and then written into Icelandic law. MiCA was added to the agreement by Decision No. 41/2025 of the EEA Joint Committee on 20 February 2025.
Alþingi then passed Act No. 101/2025 on markets in crypto-assets (lög nr. 101/2025 um markaði fyrir sýndareignir). It gives the regulation the force of law in Iceland and took effect on 1 January 2026. Under the act, the Central Bank of Iceland is the competent authority. It grants the licences and supervises the firms that hold them.
Firms that were registered when the act took effect had a transition period until 1 July 2026. Since that date, only firms licensed under MiCA may provide crypto-asset services in Iceland.
What does MiCA cover?
Licences for service providers
Companies that provide crypto services are called crypto-asset service providers (CASPs)CASP (crypto-asset service provider)A company licensed under MiCA to provide crypto-asset services, such as buying, selling, custody or transfers.. The services include holding crypto for clients, exchanging it for money or other crypto, running a trading platform and transferring crypto on clients' behalf.
To get a licence, a company must among other things show sound governance, meet prudential requirements such as minimum capital, have a complaints process and keep client assets separate from its own. The licence states which services the company may provide. A company licensed in one EEA country can offer its services in other EEA countries after notifying its supervisor, without applying for a new licence.
Issuers and white papers
Anyone offering a new crypto-asset to the public, or seeking to have it admitted to trading, generally has to publish a white paperWhitepaperA document in which the creators of a cryptocurrency or project describe how it works, what it is for and which rules apply to it.. A white paper is an information document about the crypto-asset: who is behind it, what rights it gives, what technology it uses and what the risks are.
The white paper must state clearly that the crypto-asset may lose its value in part or in full, may not always be transferable or easy to sell, and is not covered by deposit guarantee or investor compensation schemes. White papers for most crypto-assets are sent to a supervisor before publication, but they are not approved in advance. The issuer is responsible for the content.
Bitcoin has no issuer, so the rules for issuers do not apply to it. Companies that buy, sell or hold bitcoin for clients do, however, need a licence, just as for other crypto.
Stablecoins
MiCA divides stablecoinsStablecoinA cryptocurrency designed to keep a steady price, usually by tracking the US dollar or another currency. into two groups:
- E-money tokensE-money token (EMT)A stablecoin that tracks a single official currency, such as the dollar or the euro. Under MiCA, only banks and e-money institutions may issue one. are tied to a single currency, such as the US dollar or the euro. Only banks and e-money institutions may issue them. You have the right to redeem an e-money token with the issuer at face value, at any time and free of charge. USDCUSDCA stablecoin issued by the US company Circle that tracks the US dollar, so one USDC should always be worth about one dollar. is an example of an e-money token issued under MiCA.
- Asset-referenced tokensAsset-referenced token (ART)A crypto-asset that aims to keep a stable value by referencing other assets or a mix of them, such as several currencies, gold or other crypto-assets. are tied to something else, such as a mix of currencies, commodities or other crypto-assets. Their issuers need a specific licence.
Neither issuers nor service providers may pay interest on e-money tokens.
Market abuse
MiCA bans insider dealing and market manipulation in crypto-assets admitted to trading. It is forbidden to trade on inside information or to spread false or misleading information to move the price. A Pump and dumpPump and dumpA scam in which the price of a small coin is hyped up so the organisers can sell high and leave others with the losses., where the price is pushed up with misleading information and then sold into, is an example of such abuse.
Information and consumer protection
Crypto-asset service providers must among other things:
- give information that is fair, clear and not misleading, including in advertising
- warn clients about the risks of crypto transactions
- publish their prices and fees on their website
- accept complaints free of charge and handle them through a clear process
- keep client crypto legally separate from their own assets, so the company's creditors cannot claim it if the company goes bankrupt
- send clients whose crypto they hold a statement of their positions at least every three months
What MiCA does not do
MiCA improves the framework, but it doesn't remove the risk.
- MiCA doesn't make crypto safe. The European supervisory authorities EBA, EIOPA and ESMA point out that most crypto-assets remain volatile and highly risky. You can lose a lot, or everything, that you put in. A provider's licence changes nothing about the price of the coin.
- No deposit guarantee. Crypto is not a bank deposit. Neither deposit guarantee schemes nor investor compensation schemes cover it.
- Much of DeFi and NFTs fall outside the rules. Services provided in a fully decentralised way, without any intermediary, are outside MiCA. That applies to much of DeFiDeFi (decentralised finance)Financial services, such as lending, saving and trading, that run on smart contracts on a blockchain instead of through a bank or other middleman.. MiCA also doesn't cover NFTsNFT (non-fungible token)A unique token on a blockchain that records who owns a specific item, such as a piece of digital art, a ticket or an item in a game. that are unique and not interchangeable with other crypto-assets, such as digital art. NFTs issued as part of a large series may still fall under the rules.
- MiCA doesn't protect you from scams. Scammers don't apply for licences. If you send crypto to a fraudster, or lose your own private keyPrivate keyA secret number that proves you own the crypto in your wallet. Whoever holds the private key controls the crypto., the rules can't help you.
- A white paper is not a seal of quality. The existence of a white paper says nothing about whether a coin is a good buy.
What does MiCA mean for you?
If you buy crypto in Iceland, the most important thing is knowing who you are dealing with.
- Check the licence. The Central Bank's register shows who is licensed in Iceland, and ESMA's register shows licensed firms across the EEA. Read how to check if a crypto provider is licensed.
- You have a right to information. A licensed provider must tell you what its services cost, warn you about the risks and accept complaints.
- Your assets should be kept separate. Crypto a company holds for you must not be mixed with the company's own assets.
- The decision to buy is still yours. Learn about the risks before you buy.
Myntkaup ehf. holds a crypto-asset service provider (CASP) licence under MiCA from the Central Bank of Iceland, granted on 25 June 2026. Read more about the licence and how assets are held on the Security and licence page.
Frequently asked questions
Does MiCA apply in Iceland even though Iceland isn't in the EU?
Yes. MiCA was added to the EEA Agreement and written into Icelandic law by Act No. 101/2025. The rules have applied in Iceland since 1 January 2026.
Do I get my crypto back if the provider goes bankrupt?
No deposit guarantee covers crypto. MiCA does, however, require crypto that a company holds for clients to be legally separate from the company's own assets, so creditors cannot claim it in a bankruptcy. That is important protection, but not a guarantee that everything will go smoothly.
Are stablecoins safe under MiCA?
MiCA places strict requirements on issuers, including the right to redeem at face value. Even so, the European supervisory authorities warn that stablecoins may not stay stable, especially when markets are under stress. Read more about stablecoins.
Can I use a crypto service from outside the EEA?
Companies outside the EEA may not seek out clients in Iceland without a licence in an EEA country. The exception is when a client contacts the company entirely on their own initiative. If you use a service without an EEA licence, you get little or no protection under MiCA.
Closing thoughts
MiCA sets common crypto rules across the EEA and has applied in Iceland since 1 January 2026. Companies that serve you need a licence, they are supervised, and you have a right to clear information and a complaints process.
The rules don't make crypto risk-free, but they do mean you know who you are dealing with and what you can expect from them. Choose a licensed provider and learn about the risks before you buy.
