Under the new EU Markets in Crypto-Assets Regulation (MiCA), any business or individual seeking to provide crypto-asset services within the European Union must obtain proper authorization as a Crypto-Asset Service Provider (CASP). This licensing regime applies to a broad range of activities, including the custody of crypto-assets, the operation of trading platforms, crypto exchange services (fiat-to-crypto and crypto-to-crypto), portfolio management, and the issuance of crypto-assets such as stablecoins and utility tokens.

The licensing process requires applicants to demonstrate adequate internal controls, governance policies, cybersecurity infrastructure, and financial resilience. Applicants must also establish robust anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks in compliance with EU AML Directives. Transparency obligations, consumer protection mechanisms, and conflict-of-interest policies are also central to the MiCA regulatory framework.

Importantly, CASP licenses granted by a national competent authority will offer passporting rights, enabling licensed firms to operate across all EU member states without needing additional local approvals. This harmonized framework is expected to reduce fragmentation and promote regulatory clarity across the digital asset sector.

Businesses currently operating under national crypto regulations must assess how their existing permissions align with MiCA’s transitional provisions. Legal guidance is essential to determine whether reauthorization is required and to ensure timely compliance with all regulatory milestones before full MiCA implementation takes effect by 2026.

Our team offers tailored support for crypto startups, exchanges, wallet providers, and token issuers looking to achieve full MiCA compliance and maintain operational readiness across the EU.