On 17 October 2025, the European Securities and Markets Authority (ESMA) updated its Q&As under the Markets in Crypto-Assets Regulation (MiCA) with two new entries (Q&A 2653 and Q&A 2654). The updates provide further clarification on (i) how to distinguish between different execution services, and (ii) the treatment of crypto-assets admitted to trading before 30 December 2024.

How to distinguish between different execution services (Q&A 2653)

ESMA clarifies the distinction between the following services under Article 3(1) MiCA:

  • exchange of crypto-assets for funds or other crypto-assets;
  • execution of orders on behalf of clients; and
  • reception and transmission of orders.

According to ESMA, firms must determine the nature of the service based on how it is carried out in practice, rather than the terminology used in contractual or marketing documents. In summary:

  • exchange services apply when the crypto-asset service provider (CASP) acts as counterparty using its own capital;
  • execution of orders applies where the CASP acts as agent and concludes the trade on behalf of the client; and
  • reception and transmission applies when client orders are passed to a third party for execution.

ESMA further notes that acting as counterparty does not automatically exclude the service from being considered execution on behalf of a client, where the characteristics of agency activity are present.

Transitional regime for pre-30 December 2024 tokens (Q&A 2654)

ESMA also clarifies the application of Article 143(2) MiCA concerning crypto-assets (other than ARTs and EMTs) admitted to trading before 30 December 2024.

Offerors and persons seeking admission are not required to produce a MiCAR white paper for such legacy tokens but must comply with the marketing communications requirements under Articles 7 and 9 MiCA for communications made after 30 December 2024. Operators of trading platforms must ensure, by 31 December 2027, that a compliant white paper is drawn up, notified and published where required. They must also make available hyperlinks to any existing white papers. Other CASPs referenced in Article 66(3) MiCA are required only to publish hyperlinks to existing white papers and are not responsible for producing them.

ESMA adds that where a crypto-asset is not admitted to trading on a platform, a white paper may not be required at all under MiCA.

The above clarifications will be particularly relevant for CASPs preparing licence applications and assessing their business models under Title V of MiCA.