MiCA could be a problem for BTC, Lightning Network and L2's…
MiCA could be a problem for BTC, Lightning Network and L2's
No problem for on-chain transactions and miners as far as I can tell
Yes, the MiCA Regulation requires Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance for Crypto-Asset Service Providers (CASPs) operating in the EU, which includes entities facilitating transactions on the Lightning Network if they qualify as CASPs.
Scope of Application: MiCA mandates KYC for all crypto-asset service providers, including those offering digital wallet repositories and exchange platforms. If a Lightning Network node operator or service provider acts as a custodian or facilitates transfers for EU residents, they fall under these requirements.
Travel Rule: From December 2024, CASPs must comply with the Transfer of Funds Regulation (TFR), which requires the collection and exchange of sender and recipient information for every crypto-asset transfer, removing previous thresholds and applying to transactions regardless of size.
Unhosted Wallets: The regulation broadens AML rules to the crypto sector, explicitly stating that even the smallest crypto transactions require KYC compliance, which includes transfers involving unhosted (non-custodial) wallets when interacting with regulated services.
Enforcement: Non-compliant firms face severe penalties, including the revocation of licenses and fines exceeding €540 million as of late 2025, with over 50 crypto firms having their licenses revoked by early 2025 specifically for failing to meet AML/KYC rules.