By April Foster, updated June 11, 2025
In mid-2023, the European Union took a major step by introducing the MiCA regulation—short for Markets in Crypto-Assets. As the first comprehensive EU crypto regulation framework, MiCA aims to harmonize rules across all member states. It’s one of the world’s first complete legal frameworks for crypto across multiple
But there’s one part that has many people scratching their heads: Why are Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDC and USDT not fully covered by MiCA?
Let’s break it down in simple terms.
What Is MiCA, and What Is It Meant to Do?
MiCA is the EU’s answer to the growing popularity—and risk—of crypto. It applies across all 27 EU countries and aims to create consistent rules for:
Its main goals are to protect consumers, reduce fraud, ensure financial stability, and stop money laundering. But not all cryptocurrencies are treated equally under MiCA.
Why Bitcoin and Ethereum Are Excluded
One of the key reasons Bitcoin and Ethereum fall outside MiCA’s direct scope is because of how decentralized they are.
-
Bitcoin was created by an anonymous person or group (Satoshi Nakamoto) and runs without a central company or leader.
-
Ethereum is more complex, with a foundation supporting its development—but no central entity actually “owns” the Ethereum network.
MiCA mainly targets tokens with an identifiable issuer—someone or some group responsible for launching and managing the asset. But BTC and ETH don’t have that, so the EU cannot apply issuer-specific rules to them.
For example, MiCA includes strict rules on whitepapers, capital reserves, and licensing—but these only apply to projects where a central team exists. Within the broader EU crypto regulation framework, such requirements are designed for tokens with identifiable issuers. So, decentralized coins like BTC and ETH simply don’t meet the criteria to be regulated in that way.
Are BTC and ETH Completely Unregulated?
Not exactly. While the coins themselves aren’t directly covered by MiCA’s issuance rules, the companies and platforms that deal with them are.
If an exchange lists Bitcoin or Ethereum, it must:
-
Follow EU anti-money laundering (AML) rules
-
Meet consumer protection standards
-
Be licensed to operate under EU law
So, although the assets are outside some parts of the regulation, the ecosystem around them is fully subject to MiCA.
What About USDC and USDT?
Now let’s talk about stablecoins, especially USDC (by Circle) and USDT (by Tether). These coins are tied to the U.S. dollar and used all over the world. You might expect them to be fully included in MiCA. But again, they’re not directly regulated. Here’s why:
-
They’re issued outside the EU.
MiCA focuses on stablecoins created by entities inside the European Union. Since Circle and Tether are based in the U.S. and other regions, MiCA can’t directly force them to follow its rules. -
They’re not tied to the euro.
MiCA applies stricter rules to e-money tokens that are pegged to the euro or used widely in the EU for payments. Since USDC and USDT are dollar-based, and not primarily used for payments in the EU, they fall outside that specific scope.
Still, if a European crypto platform offers USDC or USDT, it must ensure the coins meet operational and disclosure requirements under MiCA. That includes how they’re marketed and how users are informed of risks.
Why Did the EU Make These Exceptions?
At first glance, it might seem strange that the most popular cryptocurrencies in the world are not fully regulated. But there are good reasons behind these choices:
-
Decentralized coins don’t have a company behind them, so it’s legally hard to apply issuer rules.
-
Bitcoin and Ethereum are the backbone of crypto markets—suddenly regulating them like securities could shock the entire industry.
-
Stablecoins like USDC and USDT are already heavily used, and sudden restrictions could cause liquidity issues.
The EU likely decided it was better to start with what’s possible now, and leave more complex topics like full decentralization and global stablecoins for future updates.
Is This the Final Word?
Not at all. MiCA is just the beginning. The EU has already signaled that more regulation is coming, possibly to include:
Also, the EU is implementing new tax-sharing rules (like DAC8) that will force crypto companies to report user activity—regardless of what coins they use.
In other words, BTC, ETH, USDC, and USDT might be left out for now—but the door is open for change.
Final Thoughts
MiCA is a huge step forward for crypto regulation in Europe. It brings clarity for investors and sets standards for crypto businesses. But it also recognizes that some assets are just too decentralized—or too global—to regulate the usual way.
Bitcoin and Ethereum don’t have a CEO or a company. USDC and USDT are managed overseas. That’s why they don’t fit neatly into the MiCA framework.
Still, every crypto company operating in the EU must now follow strict rules. The coins may be free—but the services around them are under watch.
As MiCA rolls out, expect more changes, more rules, and maybe more coins added to the list. Within the evolving EU crypto regulation framework, the approach is clear: regulate what you can, and observe what you can’t—yet.
