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MiCA Regulation: 2026 Guide for Licensing & Compliance
Under Markets in Crypto-Assets Regulation, a single authorization in any one EU Member State gives CASPs EU-wide “passporting” rights — get authorised once and operate across all 27 countries.
This article is brought to you by the team at AdamSmith. AdamSmith is a team that helps crypto companies establish and maintain legal structures in 20+ countries.
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Please note: none of this information should be considered as legal, tax, or investment advice. While we’ve done our best to make sure this information is accurate at the time of publishing, laws and practices may change. For help with the legal structuring of your project, speak to us.
What is MiCA: New Regulatory Rules for Crypto Companies in the EU
What is MiCA?
MiCA (Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114) is the European Union’s new legal framework that harmonises rules for crypto-asset service providers (CASPs) and issuers across all 27 member states. Existing virtual asset service providers may benefit from national transitional regimes until 1 July 2026, after which MiCA authorisation will be required to operate in the EU. Under MiCA, CASPs such as exchanges, custodians, and crypto-brokers must meet strict requirements on governance, safeguarding of client assets, IT security, and disclosure. Authorisation in one EU country gives firms “passporting” rights to serve clients across the entire Union.
Sources: ESMA (European Securities and Markets Authority), Official Journal of the European Union (OJ).
Who and What MiCA Covers
Unlike national VASP registrations, MiCA creates a single authorisation regime across all 27 EU member states. It applies to issuers of Asset-Referenced Tokens (ARTs), issuers of E-Money Tokens (EMTs), and CASPs such as exchanges, custodians, brokers, and trading platforms. Authorisation in one member state gives “passporting” rights to operate throughout the Union.
What MiCA Does Not Cover
MiCA does not apply to financial instruments governed by MiFID II (e.g. securities, shares, derivatives) or to fully decentralised protocols with no identifiable issuer. These fall under other EU or national regulations.
Who will enforce MiCA?
National Competent Authorities (NCAs). Authorise CASPs in their home Member State and supervise ongoing compliance. Scope includes governance, safeguarding of client assets, IT/outsourcing, disclosures, marketing practices, and enforcement (information requests, inspections, sanctions, suspension/withdrawal of authorisation).
ESMA (EU-level coordination and transparency). Promotes supervisory convergence through guidelines and technical standards, coordinates cross-border matters, and maintains the EU public register of authorised CASPs and their passporting notifications.
EBA (stablecoins and prudential focus). Leads on prudential expectations for significant ART/EMT issuers (e.g., reserves, liquidity, recovery/wind-down planning), working with NCAs and ESMA.
ECB and national central banks (financial-stability input). Provide opinions and participate where relevant for significant tokens, focusing on monetary policy and payment-system implications.
What is the timeline for MiCA implementation?
- 9 June 2023 — MiCA published in the Official Journal; 29 June 2023 — enters into force.
- 30 June 2024 — most provisions for stablecoins (ARTs/EMTs) start to apply.
- 30 December 2024 — main CASP authorisation regime applies (MiCA becomes mandatory for service providers).
- Up to 1 July 2026 — possible national transitional regimes for existing providers (subject to each Member State’s decision to shorten or not apply). After this date, MiCA authorisation is required EU-wide.
MiCA 36-month timeline for entities already providing crypto-assets services
Entry into
the force of MiCA
Entry into
application
of MiCA
MiCA becomes
mandatory for
service providers
Transitional
phase ends
Implementation Phase (18 months)
Transitional Phase (18 months)
June 2023
June 2024
Dec 2024
Q4 ’25
July 2026
Calculator: How Much Will a CASP License (MiCA) Cost for a New Company?
Which services do you provide?
MLRO
Local Director
Office
What are the key points of MiCA Regulation?
More obligations for CASPs—practical checklist you will actually build
- EU presence & management: registered office + EU-resident director; clear organizational structure and decision-making.
- AML/CTF & outsourcing: risk-based AML/KYC, vendor due-diligence, oversight and exit plans (cloud included).
- Marketing & disclosures: fair, clear, not misleading; put risk warnings in client-facing copy.
- Conflicts & complaints: written conflicts policy and auditable complaints process with timely replies.
- Reporting & visibility: periodic regulatory reports; leverage the ESMA register link in bank/partner DD.
- Travel rule implementation: ensure originator and beneficiary data exchange for crypto transfers in line with EU AMLD6 and FATF standards.
One licence, EU‑wide passporting
MiCA replaces fragmented national registrations with a single authorisation. Once your CASP is authorised by its home NCA, you can “passport” services across all 27 EU countries; your authorisation and passporting notices appear in ESMA’s public register (useful for banks and partners).
Governance “substance”: EU presence and fit‑and‑proper management
Regulators expect real decision‑making in the EU (place of effective management) and at least one director resident in the EU—not a letter‑box set‑up. ESMA/EBA guidelines also emphasise time commitment, competence and clear roles for the management body and qualifying shareholders.
Client money & asset protection (hard, testable controls)
If you receive client fiat (other than e‑money tokens), you must place it with an EU credit institution or a central bank by the end of the next business day, and never use client assets for your own account. Expect segregation, daily reconciliation and clear custody contracts—plus liability where a loss is attributable to you.
Trading venues & brokers: surveillance, transparency, records
Trading platforms must monitor market abuse, keep complete order/traceability records, and publish pre‑ and post‑trade data (near real‑time; free after a short delay such as 15 minutes and kept available for 2 years). Keep order‑book data ready for supervisors for years and formalise best‑execution.
Token offers: white papers, limited exemptions, 14‑day retail withdrawal
For tokens other than ARTs/EMTs, the offeror must be a legal person and draw up, notify and publish a crypto‑asset white paper before public offering or admission—unless a narrow exemption applies (<150 persons per Member State, or ≤€1m over 12 months, or qualified‑investor only). Retail buyers get a 14‑day withdrawal right if they purchased before trading starts. If a token has no identifiable issuer (e.g., BTC), the platform/person seeking admission shoulders disclosure and warnings.
Stablecoins: algorithmic out; ART/EMT must meet reserve & redemption rules
“Algorithmic” models do not qualify as ARTs/EMTs under MiCA. Asset‑backed issuers face strict reserve quality, 1:1 backing, liquidity and disclosure requirements; EMTs link to a single fiat and follow an e‑money‑style regime. Only the issuer (or a party with its written consent) may publicly offer or seek admission. Significant tokens trigger stricter EBA‑coordinated oversight.
If MiCA Isn’t the Right Fit: Explore Other Jurisdictions
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Which companies already hold a MiCA (CASP) licence?
57 unique CASPs across 11 Member States are in the register.
Top home states: Germany (18) and Netherlands (14) lead; then France (6), Malta (6); Spain (3), Luxembourg (3); Austria (2), Ireland (2); Cyprus (1), Lithuania (1), Finland (1).
First-wave approvals landed on 30 Dec 2024 in the Netherlands (BitStaete, Hidden Road Partners, MoonPay, Zebedee).
Peak months for new entries in 2025: May–July (steady flow of large names and banks).
Infographic: Where companies are getting their CASP licences in 2025 (MiCA)
Where companies are licensing — and why it matters
Germany: a cluster of regulated banks and broker-banks (Commerzbank, flatexDEGIRO Bank, Baader Bank, N26, Trade Republic) plus custodians (BitGo, Tangany) and the Boerse Stuttgart group. If you want bank-grade optics and deep capital‑markets links, Germany is where many incumbents went.
Netherlands: strong crypto‑native and payments mix (Bitvavo, Amdax, MoonPay, Finst, Fiat Republic, Acheron Trading) and several first‑day approvals. Good for on/off‑ramp and brokerage‑style models.
Luxembourg: global brands with rapid passporting (Coinbase, Bitstamp, Clearstream). If you need fast EU‑wide reach with a capital‑markets friendly home, this is the pattern.
Malta: large exchanges (OKX, Crypto.com, Gemini, ZBX, Bitpanda) — a clear “trading/exchange hub” narrative.
Plus France (CACEIS Bank; CoinShares AM), Spain (BBVA, Openbank, Cecabank), Austria (Bybit, Bitpanda), Ireland (Kraken), Cyprus (eToro), Lithuania (Robinhood), Finland (Coinmotion).
Who Needs MiCA Authorization (CASP Roles) — Key Obligations
CASP role
Key obligations
Custody and Administration of Crypto-Assets
Firms that safeguard private keys or manage client crypto-assets (similar to custodians or wallet providers)
- Segregate client assets from company funds and reconcile daily
- Use secure cold storage, multi-signature wallets, and strong key management
- Maintain clear custody agreements with clients (scope, fees, security)
- Outsource only to MiCA-authorised custodians and remain responsible
Operation of Trading Platforms
Providers that run order books or trading venues for crypto-assets
- Conduct due diligence on tokens before listing; apply strict admission rules
- KYC all participants and monitor trading to prevent market abuse
- Ensure resilient IT systems and settle trades within 24h
- Publish pre/post-trade data (prices, volumes) to ensure transparency
Exchange of Crypto-Assets for Funds or Other Crypto-Assets
Companies that facilitate exchange between crypto and fiat or between different crypto-assets
- Provide non-discriminatory access to exchange services
- Execute orders at displayed price with transparent fees
- Explain pricing methodology and order finality to clients
- Disclose aggregated trade data publicly
Execution of Orders on Behalf of Clients
CASPs that execute trades or transfers on behalf of clients
- Apply “best execution” duty: price, speed, costs, and likelihood of execution
- Keep detailed order audit trails
- Protect client assets and data during execution
- Maintain governance controls and conflict-of-interest policies
Placing of Crypto-Assets
Firms that market or distribute new crypto-assets on behalf of issuers
- Obtain explicit consent from issuer before placement
- Provide issuers full details of fees, target investors, and placement terms
- Apply fair marketing and risk disclosures
- Manage conflicts of interest and keep placement records
Reception and Transmission of Orders
Providers that transmit client instructions to other CASPs or venues
- Transmit client orders quickly and accurately
- No pay-for-order-flow or biased routing
- Protect order confidentiality and prevent front-running
- Conduct AML checks where relevant
Portfolio Management of Crypto-Assets
Entities that manage crypto portfolios for clients
- Conduct suitability checks and update at least every 2 years
- Segregate managed assets from company funds
- Provide periodic performance reports to clients
- Maintain independent investment policy and no kickbacks from issuers
Investment Advice on Crypto-Assets
CASPs giving personalised recommendations
- Know your client: risk, experience, financial situation
- Give advice only if suitable; decline if not
- Disclose independence, costs, and potential conflicts
- Base recommendations on a broad range of crypto-assets and keep records
MiCA Compliance Framework for CASPs
Class
Services
Min. Capital
Class 1 (Basic)
Advisory, transfer, execution of orders, placing, reception/transmission, portfolio mgmt, investment advice
€50,000
Class 2 (Custody & Exchange)
Custody and administration of crypto assets; crypto-to-fiat and crypto-to-crypto exchange
€125,000
Class 3 (Trading Platforms)
Operation of a trading platform for crypto assets
€150,000
Core MiCA Obligations for All CASPs
- Licensing: obtain authorization from the relevant national authority
- AML/KYC Compliance: implement robust AML and KYC frameworks
- Risk Management: internal frameworks for financial, liquidity and operational risks
- Consumer Protection: fair pricing, clear risk disclosures, secure custody
- Reporting Obligations: periodic reports and regulatory audits
- Operational Resilience: cybersecurity, fraud prevention, market integrity controls
Calculator: How Much Will a CASP License (MiCA) Cost for a New Company?
Which services do you provide?
MLRO
Local Director
Office
Steps to obtain the MiCA license
- 0
Home‑State Selection & Incorporation
1–4 weeksWhat happens: choose the Member State and National Competent Authority (NCA), incorporate the legal entity, and establish “substance”.
Baseline expectations:
- Registered address in the EU and at least one EU‑resident director.
- Designated Compliance/MLRO and clear ownership/UBO files (fit‑and‑proper: CVs, checks, experience).
- Initial banking plan (often an EMI account as interim, then a bank account closer to authorization).
- 1
Pre‑Application Contact with the NCA
1–3 weeksWhat happens: informal engagement with the NCA to confirm the service perimeter (custody/exchange/execution/venue, etc.), use of any transitional regime (if already operating), class implications, outsourcing approach and documentation set.
Outcome: aligned scope and expectations, which reduces later rounds of requests for information (RFIs).
- 2
Build the application package
6–10 weeksCore dossier contents:
- Business plan and financials (3‑year) with activity‑based own‑funds calculations.
- Governance & organisation: role charters, decision‑making trail, independence of control functions.
- Policies & procedures: AML/KYC; safeguarding (segregation + daily reconciliation); conflicts of interest; complaints; marketing/disclosures; incident response; outsourcing; business continuity and wind‑down.
- IT & security: architecture, access controls, logging/monitoring, change management; vendor register and exit plans.
- Service‑specific (where applicable): best execution/order handling; market‑abuse surveillance; admission/listing rules; settlement flows; white‑paper governance for token offers.
- 3
Submission & Completeness Check
2–4 weeksSubmission: the dossier is filed with the NCA (Day 0).
Acknowledgement: typically within 5 working days.
Completeness check: up to 25–30 working days.
Possible outcomes:
- Complete → file proceeds to substantive assessment.
- Incomplete → the NCA issues a gaps list; the clock pauses until missing items are re‑submitted.
- 4
Substantive Assessment
2–4 weeksWhat the NCA assesses:
- People & substance: time commitment of directors, competence, independence of control functions.
- Safeguarding: no re‑use of client assets; client fiat (other than EMT) placed with a credit institution/central bank by the next business day; daily reconciliations and clear custody arrangements.
- IT & outsourcing: security posture, incident handling, third‑party oversight and exit scenarios.
- Conduct: fair, clear and not misleading marketing; conflicts management; complaint handling SLAs.
- For trading venues: market‑abuse surveillance, pre/post‑trade transparency publication, order‑data retention.
Process: 1–3 RFI rounds, occasional interviews or remote system walk‑throughs.
Timing: MiCA foresees a decision within 40 working days from completeness, extendable by +20 working days where clarifications are requested; in practice, assessment typically takes 3–6 months from submission.
- 5
Decision, ESMA Public Register
& Passporting1–3 weeks after approvalDecision: authorization or refusal. Upon approval, the firm is listed in ESMA’s public register; passporting notifications are then filed to serve other Member States.
Next steps: align T&Cs and marketing to the authorised status; keep register information current.
- 6
Banking & Go‑Live
What banks/payment providers request: the authorization letter, board minutes, full policy set (especially safeguarding/AML), proof of reconciliations and segregation, and the UBO/KYC pack.
Result: operational accounts are opened and services begin under the MiCA regime.
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MiCA Licensing Packages
Basic
€ 19,900
- Selection of a suitable jurisdiction in the EU
- Company registration (including legal address)
- Preparation of all documents for MiCA licensing
- Review of documents, rules, and policies
- Submission of documents and obtaining the license
- Assistance in finding an AML/MLRO specialist
- Customized policies and business plan (if needed)
Advanced
Upon request
- Selection of a suitable jurisdiction in the EU
- Company registration (including legal address)
- Preparation of all documents for MiCA licensing
- Review of documents, rules, and policies
- Submission of documents and obtaining the license
- Assistance in finding an AML/MLRO specialist
- Customized policies and business plan (if needed)
Premium
Upon request
- Selection of a suitable jurisdiction in the EU
- Company registration (including legal address)
- Preparation of all documents for MiCA licensing
- Review of documents, rules, and policies
- Submission of documents and obtaining the license
- Assistance in finding an AML specialist
- Customized policies and business plan (if needed)
MiCA Across EU Countries (Mini-Hub)
FAQ MiCA Regulation and CASP License
What is the MiCA regulation?
MiCA (Markets in Crypto-Assets) is an EU regulation that sets clear rules for Crypto-Asset Service Providers (CASPs), ensuring transparency, investor protection and market stability across all 27 EU member states.
Who needs a MiCA license?
All CASPs operating in the EU, including crypto exchanges, wallets, trading platforms and token issuers, must obtain a MiCA license to provide services legally.
When does MiCA take effect?
MiCA will be fully implemented by December 2024, with a transition period extending into 2025 for compliance adjustments.
What are the benefits of a MiCA license?
A MiCA license grants legal access to the EU market, enhances credibility, ensures regulatory protection and enables seamless operations across member states.
What are the capital requirements for CASPs under MiCA?
MiCA requires €50,000 for advisory services, €125,000 for custody and exchange and €150,000 for trading platforms. These thresholds ensure financial stability and regulatory compliance based on the CASP’s risk levels.
What are the key compliance requirements for CASPs?
Under the MiCA regulation, (CASPs) must be licensed by their national authority, meet governance and capital requirements and comply with strict conduct, AML/KYC, and cybersecurity rules. They must safeguard client assets, provide transparent risk disclosures and follow fair trading and best execution practices. Ongoing obligations include reporting, record keeping and ensuring any outsourcing arrangements remain under full CASP responsibility.
How long does it take to obtain a MiCA license?
The licensing process varies by country, but typically takes 3 to 6 months, depending on the business structure, documentation and regulatory approval timeline.
Which authority issues the MiCA license?
MiCA licenses are issued by national financial regulators in each EU member state, following ESMA guidelines.
Can a MiCA license be used across the EU?
Yes, a MiCA license obtained in one EU country allows a CASP to operate freely across all 27 member states without additional licensing.
What happens if a CASP operates without a MiCA license?
CASPs operating without a valid MiCA license may face heavy fines, operational restrictions, or a ban on services in the EU market.
Does MiCA apply to stablecoins and token issuers?
Yes, MiCA covers stablecoins, utility tokens and security tokens, requiring issuers to meet specific disclosure and reserve requirements.
What role does ESMA play in MiCA regulation?
ESMA oversees the implementation of MiCA, sets regulatory standards and ensures harmonization across EU financial markets.
Can non EU companies apply for a MiCA license?
Yes, but non-EU companies must register a legal entity in an EU country and meet all regulatory and compliance requirements.
What documents are required for a MiCA license application?
Typical requirements include a business plan, AML/KYC policies, risk management framework, cybersecurity measures, governance structure and financial statements.
How can we help with MiCA licensing?
We provide full regulatory support, including consulting, application preparation, document drafting, communication with regulators and ongoing compliance assistance to ensure a smooth licensing process.
