EU CRYPTO REGISTER · GLOSSARY · LAST VERIFIED
What is the difference between MiFID II and MiCA for crypto?
MiFID II regulates investment firms and financial instruments; MiCA regulates crypto-assets that are not financial instruments. The dividing line is whether the asset qualifies as a transferable security, money-market instrument, derivative, or similar under MiFID II. Crypto derivatives fall under MiFID II; spot crypto trading falls under MiCA.
What is the exact legal definition?
MiFID II is Directive 2014/65/EU on markets in financial instruments. MiCA Article 2 explicitly excludes from its scope crypto-assets that are financial instruments under MiFID II, e-money under EMD2 (in some configurations), deposits, structured deposits, and securitisations. Source: Article 2 MiCA and Directive 2014/65/EU.
What does it actually mean in practice?
The dividing line. If a token is a financial instrument under MiFID II (transferable security, money-market instrument, derivative, etc.), MiFID II applies and MiCA does not. If it is not a financial instrument but is a crypto-asset, MiCA applies. National regulators publish their own qualification guidance and there is some variation across Member States.
Crypto derivatives. Cash-settled crypto futures, options and perpetuals are derivatives within MiFID II. A platform offering them to EEA users needs MiFID II authorisation and the systems-and-controls regime that applies to investment firms. This is why several crypto exchanges that hold MiCA CASP authorisation operate a separate, parallel MiFID II authorisation track for their derivatives offering.
Spot trading and custody. Spot purchase, exchange and custody of pure crypto-assets is MiCA territory. A CASP authorisation under Article 63 of MiCA is the relevant licence.
Practical implications. Operating a full-service crypto exchange (spot, custody, derivatives, advisory) in the EEA requires a stack of authorisations: MiCA for the spot/custody/transfer services, MiFID II for derivatives, and possibly EMD2 (EMI) for stablecoin issuance. The compliance burden is the sum.
Where do we see this in the public record?
| Example | What it shows |
|---|---|
| Spot BTC trading | MiCA (CASP service 'b' or 'c') |
| BTC perpetual futures | MiFID II (derivative) |
| Crypto-asset custody | MiCA (CASP service 'a') |
| Tokenised equity | MiFID II (transferable security) |
What else do users ask about this?
Can the same entity hold both MiCA and MiFID II authorisations?
Yes, subject to meeting both gating regimes. Several exchanges operate a MiCA-authorised subsidiary and a separately MiFID II-authorised entity within the same group.
Does MiFID II cover spot crypto?
No. Pure spot crypto-assets are not financial instruments under MiFID II and are therefore outside its scope. They fall under MiCA.
Where is the qualification line drawn for security tokens?
Each Member State publishes guidance, with broad EU-level convergence on transferable-securities tests. ESMA's joint warnings and the European Commission's interpretive papers provide additional context.
Which sources is this entry based on?
- MiCA Article 2 - Scope and exclusions
- Directive 2014/65/EU (MiFID II)
- ESMA - MiFID II landing page
- Regulation (EU) 2023/1114 (MiCA) on EUR-Lex
Glossary entries on The Crypto Register are sourced from primary legal texts (Regulation (EU) 2023/1114, ESMA guidelines, national regulator publications). They are not legal advice. Last verified .