- MiCA is the EU's unified crypto regulation, in force from 30 December 2024 across all 27 EU member states
- Any company providing crypto-asset services to EU clients must be authorised as a CASP (Crypto-Asset Service Provider)
- A single MiCA CASP authorisation allows passporting across all 27 EU markets — no more per-country registrations
- Capital requirements range from EUR 50,000 to EUR 150,000 depending on services offered
- Existing national VASP registrations (e.g., Poland, Lithuania) benefit from grandfathering until July 2026 at the latest
- You choose which EU member state to apply in — choose based on speed, cost, and regulator quality
What is MiCA?
The Markets in Crypto-Assets Regulation (MiCA), formally Regulation (EU) 2023/1114, is the European Union's complete regulatory framework for crypto-assets. It replaces the patchwork of national regulations that previously governed crypto activities across EU member states — where each country had its own rules, registration requirements, and compliance standards.
MiCA creates a single EU-wide regulatory framework with two key objectives: (1) protect retail investors from risks associated with crypto-assets, and (2) provide legal certainty for crypto businesses operating within the EU. By achieving the latter, MiCA also fulfils an important commercial objective — enabling legitimate crypto businesses to scale across Europe with a single regulatory authorisation.
MiCA covers three categories: utility tokens (previously largely unregulated), asset-referenced tokens (ARTs — stablecoins backed by multiple assets), and e-money tokens (EMTs — stablecoins backed by a single fiat currency). It also establishes the CASP authorisation regime for all businesses providing crypto-asset services to EU clients.
What MiCA Does NOT Cover
MiCA explicitly excludes several categories: fully decentralised protocols with no identifiable issuer, NFTs (unless they qualify as crypto-assets under MiCA's definitions), DeFi (to a limited extent — subject to ongoing review), and central bank digital currencies (CBDCs). Crypto-assets qualifying as financial instruments under MiFID II continue to be regulated under MiFID II, not MiCA.
Which Crypto Services Require MiCA Authorisation?
Article 3 of MiCA defines ten categories of crypto-asset service. Any entity providing one or more of these services to clients in the EU must be authorised as a CASP. A single authorisation can cover multiple service types — you do not need separate licences for each activity.
| Service | Description |
|---|---|
| Custody & administration | Safekeeping and management of crypto-assets or private keys on behalf of clients |
| Operation of trading platform | Running a multilateral system for buying, selling, or exchanging crypto-assets |
| Exchange for fiat | Exchanging crypto-assets for fiat currency using own capital |
| Exchange crypto-to-crypto | Exchanging crypto-assets for other crypto-assets using own capital |
| Execution of orders | Executing buy/sell orders for crypto-assets on behalf of clients |
| Placing crypto-assets | Marketing or distributing newly issued crypto-assets on behalf of issuers |
| Reception & transmission of orders | Receiving orders from clients and routing them to execution venues |
| Portfolio management | Managing a portfolio of crypto-assets on behalf of clients under discretionary mandate |
| Advice on crypto-assets | Providing personalised recommendations to clients on crypto-asset transactions |
| Transfer services | Providing services to transfer crypto-assets on behalf of clients |
MiCA CASP Capital Requirements
MiCA Article 67 establishes minimum own funds requirements for CASPs based on the services they provide. The requirements are tiered into three classes based on the risk profile of the services. CASPs providing multiple services must hold the highest applicable capital requirement — not the sum of all requirements.
| Class | Services Covered | Min. Own Funds |
|---|---|---|
| Class 1 | Reception & transmission of orders; Execution of orders; Advice; Transfer services | EUR 50,000 |
| Class 2 | Exchange (fiat or crypto); Placing crypto-assets; Portfolio management | EUR 125,000 |
| Class 3 | Operation of trading platform; Custody & administration | EUR 150,000 |
Fixed overhead requirement: In addition to the class-based minimum, CASPs must hold own funds equal to at least one quarter of fixed overheads from the preceding year. For growing businesses, this "fixed overhead rule" may require capital well above the stated minimums. Professional insurance may be used as an alternative to part of the capital requirement under certain conditions.
Significant CASP Requirements
CASPs that exceed thresholds for transaction volume (EUR 15 billion in average outstanding crypto-assets), number of clients (over 15 million), or systemic importance face enhanced requirements — including potential oversight by ESMA (European Securities and Markets Authority) rather than national regulators. For most mid-market crypto businesses, these thresholds are not immediately relevant.
MiCA Timeline — What Happened When
MiCA Published in EU Official Journal
Regulation (EU) 2023/1114 published. 18-month implementation period begins for Title IV/V (CASP rules).
Title III Applied — ART & EMT Issuers
Rules for Asset-Referenced Token and E-Money Token issuers became effective. Stablecoin issuers (e.g., stablecoins backed by a basket of assets) must comply.
Title IV & V Applied — Full CASP Regime
All CASP authorisation requirements, consumer protection rules, and market abuse provisions became applicable across all 27 EU member states. New entrants must apply for MiCA authorisation from this date.
Grandfathering Period Ends
The latest date by which all existing nationally registered VASPs must have obtained MiCA CASP authorisation. Member states may set earlier deadlines. After this date, operating without MiCA authorisation is illegal.
MiCA Grandfathering — Existing VASPs
MiCA Article 143 provides transitional arrangements — commonly called "grandfathering provisions" — for crypto-asset service providers that were authorised or registered under national law before MiCA's application date of 30 December 2024. These businesses can continue operating under their national authorisation for a transitional period while applying for full MiCA CASP authorisation.
| Pre-MiCA Status | Grandfathering Period | Deadline to Obtain MiCA CASP |
|---|---|---|
| Nationally registered/authorised VASP (before 30 Dec 2024) | Up to 18 months from MiCA application date | By 1 July 2026 (latest) |
| Member state opted for shorter period (some did) | Member state may reduce to less than 18 months | Check specific member state deadline |
| New entrant after 30 Dec 2024 | No grandfathering — MiCA applies immediately | Must apply under MiCA from day one |
| EU Credit Institutions (banks) | Notification regime — no full CASP authorisation required | Notify NCA 40 working days before providing CASP services |
Action required now: If you hold a national VASP registration (Poland, Lithuania, Estonia, etc.) and wish to continue operating after July 2026, you must file a MiCA CASP application with your home member state National Competent Authority (NCA) well before the deadline. Applications take 3–6 months to process — do not wait until 2026.
Which EU Member State to File In?
MiCA authorisation is granted by the National Competent Authority (NCA) of the EU member state where the CASP has its registered office. You must have genuine substance (registered office, real operations) in the member state where you apply. The choice of member state affects processing time, regulatory style, practical fees, and ongoing supervision quality.
Poland, Slovakia, Bulgaria
Light-touch regulators with straightforward CASP processes. Good for smaller exchanges and OTC desks. Processing: 3–5 months expected.
Lithuania, Ireland, Netherlands
Strong regulator reputation, clear processes, good banking access. Higher fees and longer review. Processing: 4–6 months expected.
Germany (BaFin), France (AMF), Luxembourg
Highest regulatory credibility, ideal for institutional operations and ART/EMT issuers. Most rigorous process. Processing: 6–12 months.
How to Apply for MiCA CASP Authorisation
The CASP authorisation process follows a standardised procedure set out in MiCA Article 62, though member states have some flexibility in implementation. The NCA has 25 working days to assess completeness of the application and 3 months from acknowledgement of a complete application to grant or refuse authorisation.
- Establish a registered office and genuine substance in the chosen EU member state
- Identify and appoint management body members (at least 2 directors for MPI-equivalent businesses)
- Prepare the programme of operations (business plan) including IT systems, governance, and outsourcing arrangements
- Draft complete AML/CFT policies aligned with AMLD6 and MiCA requirements
- Prepare client asset safeguarding procedures (segregation, reconciliation)
- Develop complaint handling and conflicts of interest policies
- Document prudential arrangements (capital adequacy, professional indemnity insurance if applicable)
- Prepare KYC packages for all management body members and qualifying shareholders
- Submit application to the NCA via the member state's designated portal
- Respond to NCA queries within stated deadlines (typically 20 working days)
- Receive authorisation decision — NCA must decide within 3 months of complete application
MiCA CASP Ongoing Obligations
MiCA imposes significant ongoing conduct-of-business requirements on authorised CASPs. These go beyond what most pre-MiCA national VASP registrations required and represent the core of MiCA's investor protection framework.
Client crypto-assets must be held in segregated accounts. Annual reconciliation required. Clear rules on what happens in insolvency.
Documented conflicts of interest policy. Disclosure to clients. Separation of proprietary trading from client order execution.
Free complaint handling system. Response within 15 business days. Record-keeping for 5 years.
Market manipulation and insider dealing prohibitions. Suspicious transaction reporting to NCAs.
Regular reports to NCA on financial position, transactions, and compliance. Annual audited accounts.
Full FATF Travel Rule compliance. Originator and beneficiary data for all transfers above EUR 1,000.