Regulation (EU) 2023/1114 (MiCA) & Veria Compliance
What is MiCA?
The Regulation (EU) 2023/1114, known as Markets in Crypto-Assets (MiCA), is the comprehensive legal framework establishing uniform rules for crypto-assets in the European Union.
Its primary goal is to protect investors and ensure financial stability by regulating:
- •Issuers of crypto-assets (including stablecoins/e-money tokens).
- •Crypto-Asset Service Providers (CASPs), such as exchanges, custodians, and trading platforms.
The Compliance Challenge for DeFi & Protocols
Under MiCA, entities interacting with EU users face strict operational requirements. While fully decentralized protocols may fall outside some scopes, front-ends, centralized operators, and CASPs are heavily regulated.
Key mandates include:
1. Anti-Money Laundering (AML) & Counter-Terrorist Financing (CFT)
Requirement: CASPs must have "effective procedures and arrangements" to detect and prevent illicit financial flows (referencing Directive (EU) 2015/849).
Impact: You must know who is behind a wallet address before processing transactions.
2. Sanctions Screening
Requirement: Ensuring funds do not originate from high-risk third countries or sanctioned individuals (OFAC/EU lists).
Impact: Real-time blocking of non-compliant wallets is necessary to avoid liability.
3. Operational Resilience
Requirement: Systems must be robust enough to ensure continuity and regulatory reporting.
How Veria Solves MiCA Compliance
Veria provides the infrastructure layer to satisfy MiCA's screening and due diligence obligations without requiring you to build an in-house legal tech stack.
Automated Wallet Screening
Veria's API performs the KYC/AML checks required for CASPs, instantly verifying if a wallet address is linked to illicit activity or sanctioned entities. This directly addresses the "internal control mechanisms" mandated by MiCA Art. 68.
Real-Time & "One API Call"
MiCA requires ongoing monitoring, not just one-time checks. Veria's <100ms latency ensures that your protocol remains compliant per transaction, preventing interaction with non-compliant actors instantly.
DeFi-Native Integration
For protocols acting as CASPs or seeking to future-proof against the Transfer of Funds Regulation (TFR), Veria offers a drop-in solution to filter users based on MiCA standards without disrupting the user experience.
Regulatory Timeline
December 30, 2024
The regulation became fully applicable for all Crypto-Asset Service Providers.
December 30, 2025
Final expiration of transitional measures and full enforcement for all remaining entities.
Ready to automate your regulatory obligations?
Start Building with Veria