The lawyers at Regulated United Europe regularly publish analytical materials and expert reviews on European legislation relating to cryptocurrencies and digital assets. The blog’s primary objective is to keep clients and readers informed about the latest trends, impending regulatory changes, and the practical implications of MiCA, AMLD5, DORA, and other legislation impacting the crypto industry within the European Union.
All published materials are organised by topic, enabling readers to swiftly find information on licensing, taxation, tokenisation, stablecoin issuance, smart contract regulation, and MiCA licence acquisition in specific jurisdictions.
Each article provides a concise yet meaningful overview of the key provisions of European and national legislation, alongside commentary from Regulated United Europe specialists on the impact of the new rules on the business practices of crypto companies, investors, and financial intermediaries. This section enables clients to receive timely updates on legislative changes, assess risks and plan future compliance steps.
Thus, the company blog serves as a reliable source of analytical information for entrepreneurs planning to develop crypto projects in Europe, helping them to understand how digital asset legislation shapes new market standards.
General information on MiCA licensing
MiCA licence requirements in Europe
The Markets in Crypto-Assets Regulation (MiCA) has become the foundation for a unified EU approach to regulating the crypto-asset market and related services. The goal is to create a transparent and secure regulatory environment that ensures investor protection, financial market stability and innovation in the digital sector.
MiCA provides legal certainty for companies working with crypto assets, while also preventing risks related to money laundering and terrorist financing. The regulation applies to legal and natural persons who issue, publicly offer or admit crypto assets to trading, as well as to those who provide services related to their circulation within EU member states.
This includes crypto-asset service providers (CASPs), such as trading platform operators, crypto exchanges, custodial services, portfolio managers and advisors.
The regulation divides crypto-assets into three main categories:
- Other crypto-assets that are not classified as Asset-Referenced Tokens (ARTs) or E-Money Tokens (EMTs). Authorisation is not required, but issuers must publish a white paper describing the token and associated risks.
- ARTs (Asset-Referenced Tokens) are tokens whose value is tied to several assets or currencies. These require authorisation and compliance with strict rules.
- E-money tokens (EMT) – tokens backed by a single official currency, similar to electronic money, which are subject to licensing and control.
Central bank digital currencies (CBDCs), certain NFTs and some traditional financial instruments are excluded from MiCA.
To obtain a MiCA licence, companies must meet several requirements:
- They must be registered in an EU member state and maintain a physical office with at least one EU-resident director.
- They must also apply for authorisation with the national regulatory authority.
- They must also establish governance, internal controls, risk management and complaints-handling systems.
- They must also meet capital requirements, especially for ART and EMT issuers.
- They must also implement AML/KYC procedures.
- Ensure IT security and data protection.
- Provide transparent information about services, risks and business models.
Issuers must also publish a white paper that fully describes the project and its legal characteristics.
The MiCA regulation was first introduced by the European Commission in September 2020, officially adopted in April 2023, and is currently being phased in. Provisions on stablecoins came into effect on 30 June 2024, with full implementation scheduled for 30 December 2024. A transition period will run until mid-2026.
In summary, MiCA establishes clear, unified rules for all crypto market participants within the EU. Its implementation creates a foundation for sustainable growth in the digital asset sector, increases investor trust and fosters fintech innovation, all the while ensuring transparency and reliability in the European crypto market.
MiCA regulations cover various areas of activity
MiCA regulation for crypto asset service providers (CASPs)
The MiCA regulation establishes uniform European Union rules for services related to crypto assets, creating a legal framework within which CASPs can operate in EU countries. A CASP is defined as a legal entity or enterprise that provides one or more types of professional service relating to crypto assets, such as custody, exchange (crypto to fiat or crypto to crypto), trading platforms, portfolio management, consulting, order transmission, and more.
According to the regulation, CASPs must obtain authorisation from the competent national authority in an EU Member State and comply with requirements aimed at protecting clients, increasing transparency and reducing systemic risks. The main requirements include implementing measures against money laundering (AML) and terrorist financing (CFT), carrying out customer identification procedures (KYC), organising risk management (operational, technological and market-related), ensuring information security and regularly reporting and disclosing activity to regulatory authorities. Organisational requirements include having a legal entity with a registered office and at least one EU-resident director in the EU, establishing a corporate governance system, and having internal policies, complaint management procedures, and business continuity and incident response systems. Higher capital requirements and other additional conditions may be imposed for certain categories of services or assets.
Authorisation as a CASP provides access to the single European market: once a licence has been obtained in one EU country, services can be provided under the ‘passporting’ principle in other member states without the need to obtain a separate licence in each of them. This creates a significant competitive advantage for companies intending to scale their activities within the EU. For clients and investors, CASP authorisation under MiCA is a marker of trust and compliance with high regulatory standards. However, complying with MiCA requirements necessitates significant investment in internal infrastructure, legal support, compliance procedures and technological solutions. Failure to obtain authorisation or violation of the requirements can result in restrictions on access to the EU market, fines and reputational risks.
In practice, it is evident that national regulators are gradually strengthening their supervision of CASPs, particularly those with a significant market impact. This emphasises that MiCA regulation involves not only obtaining a licence, but also being prepared for constant regulation, monitoring and compliance with requirements. Therefore, if a company’s business model involves providing crypto asset services in the EU, choosing a jurisdiction, preparing for authorisation and establishing an internal structure should be considered a strategically important step. Only with comprehensive preparation, including legal due diligence, technological support, and readiness for ongoing supervision, can a CASP successfully operate within the European legal framework.
MiCA regulation for crypto assets
The MiCA regulation is the European Union’s most important legislative and legal initiative aimed at regulating operations with crypto assets. It creates a legal framework for the digital asset industry, including the issuance of tokens, their custody, trading and use, which forms part of the EU’s overall strategy for the digitalisation of the financial sector. The regulation’s primary objectives are to establish uniform standards for crypto assets, mitigate risks for consumers and investors, eliminate legal gaps, and foster innovation in the financial sector.
MiCA covers a wide range of aspects related to crypto assets and introduces a clear classification of assets. These include asset-referenced tokens (for example, those tied to a basket of currencies or commodities), stablecoins backed by fiat currency, and utility tokens that provide access to certain goods or services. Each category has its own specific requirements for issuance, management, and liquidity. The regulation imposes strict obligations on token issuers and crypto asset service providers. Companies working with crypto assets must register with and obtain licences from the relevant national supervisory authorities — this applies in particular to exchanges, wallets, and token exchange platforms. Issuers must provide investors with comprehensive information on the nature of the tokens, associated risks, and protection mechanisms by publishing so-called white papers. The regulation also introduces risk management standards, including protection against cyberattacks, ensuring liquidity, and safeguarding user assets. The regulation also addresses environmental standards, encouraging the use of energy-efficient technologies such as Proof-of-Stake.
MiCA will have a significant impact on the development of the crypto industry in Europe. It establishes transparent rules, which contribute to the legitimisation of crypto assets and their integration into the traditional financial system. This creates new opportunities for attracting institutional investment and expanding the digital asset ecosystem. However, complying with the regulation requires considerable effort, including adapting business models, investing in infrastructure and ensuring legal and operational support. As the regulation is implemented at a national level under the coordination of European supervisory authorities, there are certain differences in how MiCA is applied in different countries. This requires companies to take a strategic approach to launching and managing projects. Overall, MiCA establishes uniform rules for all participants in the crypto asset market within the EU. Implementing this regulation creates a foundation for the sustainable development of the digital asset sector, increases investor confidence and stimulates innovation, all the while ensuring the transparency and reliability of crypto companies operating within the European legal framework.
MiCA regulation for cryptocurrency
It represents a significant step by the European Union in creating a unified legal framework for cryptocurrencies and related digital assets. Its aim is to regulate cryptocurrencies, protect consumer interests, prevent financial risks and stimulate innovation in the digital economy. Unlike stablecoins, cryptocurrencies are digital assets not linked to a specific underlying asset. Their value is determined by supply and demand, making them more susceptible to volatility. MiCA aims to establish a safe and transparent environment in which cryptocurrencies can be used.
The regulation’s main provisions concerning cryptocurrencies include a clear classification of crypto assets: cryptocurrencies are defined as assets not tied to fiat currency or another underlying asset. This enables regulators to establish specific requirements for cryptocurrencies as opposed to stablecoins. Companies providing services related to cryptocurrencies, including custody of assets, exchange and platform management, must obtain a licence from the national regulator. This requirement is designed to ensure the reliability and transparency of their activities.
All issuers and service providers must disclose full information to users about the cryptocurrency, including its technical characteristics, risks and terms of use. MiCA also requires compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) standards, including customer due diligence (CDD) and transaction monitoring to detect suspicious activity. To reduce volatility and prevent systemic risks, the regulation introduces requirements for managing operational and technological risks: service providers must use reliable security and monitoring systems. Additionally, the regulation provides for consumer protection, obliging service providers to return funds to users in the event of technical failures, cyberattacks or other unforeseen circumstances.
MiCA provides special measures for cryptocurrencies that reach a significant level of use and market power. Such cryptocurrencies are subject to enhanced supervision to minimise threats to financial stability.
Adopting MiCA brings significant benefits to the cryptocurrency market. First, the regulation provides legal certainty and reduces risk for investors. Secondly, it creates new opportunities for business growth and the integration of cryptocurrencies into the traditional financial system. Thirdly, MiCA stimulates innovation by ensuring consumer protection and transaction transparency.
Overall, the implementation of MiCA marks a new stage in the development of the cryptocurrency industry in Europe. The regulation creates a foundation for the stable, safe and competitive circulation of cryptocurrencies, contributing to the growth of the digital economy and strengthening Europe’s position in the global financial technology market. It establishes uniform rules for cryptocurrency market participants within the EU, thereby increasing investor confidence, stimulating innovation, and ensuring the transparency and reliability of crypto companies operating within the European legal framework.
MiCA regulation for custodial wallets
The Markets in Crypto-Assets Regulation (MiCA) sets out specific requirements for providers of custodial wallet solutions within the European Union. A custodial wallet is defined as a service that stores clients’ crypto assets, manages access to funds, and provides the technical infrastructure for storing these assets and conducting transactions on behalf of users. Under MiCA, such services are classified as “crypto-asset service providers” (CASPs), which means their activities are regulated.
In order to operate legally in the EU, an organisation or company providing custodial wallet services must be registered or have a legal entity in one of the Union’s member states, have a physical place of business and appoint at least one EU-resident director. The next step is to submit an authorisation application to the national supervisory authority and establish an internal management system comprising corporate governance, risk management, incident response mechanisms, and compliance and complaints policies.
The application of MiCA to custodial wallets focuses key attention on the security of assets and the protection of client rights. Operators are obliged to implement technical and organisational measures such as encryption, multi-factor authentication, protection against cyberattacks, backup and access control, and internal procedures for responding to data leaks or other threats. They must also develop and implement internal documentation such as policies, employee instructions, reporting and monitoring.
The choice of jurisdiction matters. For custodial services, countries with a flexible yet robust regulatory framework are recommended, where licensing is overseen and it is possible to obtain ‘passporting’ of services across the EU upon receiving authorisation. Operating custodial wallet services under MiCA requires long-term support. After obtaining a licence, continuous compliance with requirements, monitoring of legislative changes and adaptation of processes are necessary. This means that the operator must invest in infrastructure, provide continuous staff training and be prepared to liaise with supervisory authorities.
Therefore, entering the EU market with custodial crypto asset storage services involves significant obligations relating to security, regulation and management. However, for those prepared for this, MiCA opens up opportunities for scaling activities, demonstrating client trust and meeting the high standards of European regulation.
MiCA regulation for asset-referenced tokens (ART)
Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA) introduces specific rules for so-called ‘asset-referenced tokens’ (ARTs). An ART is defined as a crypto-asset that aims to maintain stable value by being linked to one or more official currencies, commodities, other crypto-assets, or a combination of these. ART issuers must be legally established in a European Union member state and obtain authorisation from the relevant national authority if they intend to make a public offering of such tokens or admit them to trading on a platform. For issuers that are credit institutions, authorisation requirements may differ, although the obligation to notify the supervisory authority remains a key feature.
The main ART obligations include preparing and publishing a white paper that discloses information about the token’s nature, stabilisation mechanisms, reserve structure and holders’ rights; maintaining sufficient asset reserves to cover token-related obligations; implementing internal risk and liquidity management procedures; and ensuring that holders can redeem tokens in cases provided for under MiCA.
The regulation provides for a transitional period: MiCA rules for ART began to apply from 30 June 2024, meaning that issuers of tokens falling into this category had to either obtain authorisation or, in the case of previously issued tokens, submit an application for it by the specified date. Failure to comply with these requirements may result in a ban on the public offering of a specific token within the EU or the imposition of other sanctions.
Therefore, if a project involves issuing tokens linked to a basket of assets, currencies or other cryptocurrencies, and is intended for an EU audience or market, MiCA compliance must be incorporated into its structure in advance. This means that legal preparation, choice of jurisdiction, creation of organisational mechanisms, reserves and disclosure of information are an integral part of the strategy for launching ART in the EU.
MiCA regulation for Electronic Money Tokens (EMTs)
Thanks to its international reach, the company has gained unique experience of working with businesses of various sizes and in various industries. This enables it to provide clients with practical solutions that align with European regulatory requirements.
Regulated United Europe’s clients are international companies that are planning to enter the European Union market in order to expand their customer base, strengthen trust among their partners, and optimise their tax situation. The need to work with RUE usually arises from the necessity to obtain European legal status, access EU financial institutions and legally operate with crypto-assets, digital services or investment products.
MiCA Regulation for Smart Contracts
The MiCA regulation establishes a legal framework for crypto-assets and smart contracts within the European Union. Its aim is to ensure the reliability, transparency and user protection of these assets and contracts. A smart contract is a programmable agreement that is executed on a blockchain platform without intermediaries when pre-defined conditions are met. This technology is becoming increasingly widespread in financial services, digital asset management, insurance and the public sector. However, it is also associated with legal, technical and operational risks.
MiCA introduces specific requirements for smart contracts, primarily relating to disclosure and security. Smart contract developers are required to provide the source code and detailed documentation to enable interested parties to evaluate the software’s functionality and resilience. This level of transparency strengthens trust in the technology. Measures must also be implemented to protect against cyberattacks and manipulation, including regular audits and the use of tested algorithms to ensure the system is resilient to external influences.
Another important consideration is the legal significance of smart contracts; they must be structured so that their execution is recognised as valid within the legal systems of EU member states. In this context, MiCA emphasises the necessity of including mechanisms to stop or adjust the execution of a smart contract in the event of errors, breaches of conditions or other unforeseen circumstances. Developers and operators of smart contracts are responsible for compensating users for financial losses caused by the software.
For projects using smart contracts and working with crypto-assets, complying with MiCA requirements requires significant resources and effort, including preparing full technical and legal documentation, conducting audits and adapting infrastructure to meet security and risk management requirements. At the same time, however, regulation creates a favourable environment for users and investors, opening up new opportunities for the integration of smart contracts into traditional business models.
Ultimately, MiCA plays a key role in establishing a balanced legal environment in which innovations in smart contracts can flourish under clear rules and with a high level of protection. This will enable smart contracts to become a reliable tool for the automation and digitisation of economic processes.
MiCA regulation for non-fungible tokens (NFTs)
The Markets in Crypto-Assets Regulation (MiCA) provides specific considerations for NFTs, but the main principle is that the general MiCA regime does not apply to genuinely unique, non-replaceable tokens. However, if an NFT or a collection of NFTs loses its uniqueness and functions as a fungible crypto-asset in practice, it may fall under the scope of the regulation.
NFTs are digital assets recorded in a distributed ledger that confirm ownership or other rights to an object, whether digital or physical. Their key feature is uniqueness: each token has distinctive characteristics and cannot be replaced by another token. The MiCA preamble states that crypto-assets that are unique and non-fungible — including digital art and collectibles whose value is determined by their individual properties and usefulness to the owner — do not fall under the regulation.
However, if NFTs are issued as large-scale collections or undergo fractionalisation, resulting in the tokens becoming interchangeable or granting identical rights to all holders, they may be classified as ordinary crypto-assets. In this case, the issuer and the platform operator would be subject to MiCA requirements, including the obligation to disclose information, to licence service providers and to comply with anti-money laundering and customer identification procedures.
This means that issuers and platform operators working with NFTs must conduct a detailed legal assessment of the nature of the token. It is important to determine whether the token is truly unique or part of a series or collection where fungibility is possible. If the token is unique, MiCA does not impose specific requirements on it; however, this does not exclude the application of other regulatory regimes. For instance, if an NFT confers rights to receive income, participate in a project or share in profits, it could be categorised as a financial instrument, potentially falling under the scope of the Markets in Financial Instruments Directive (MiFID) and, in certain instances, electronic money or payment services regulations.
Thus, the regulation of NFTs under MiCA is flexible and context-based. The main rule is that unique tokens are not regulated by this Act. However, depending on their structure and functionality, they may be categorised as crypto-assets and fall under MiCA. This requires developers and issuers to carry out thorough legal preparation, analyse their business model and properly position their products, in order to avoid violating regulatory requirements when entering the European market.
MiCA regulation for stablecoins
The Markets in Crypto-Assets Regulation (MiCA) establishes clear rules for the circulation of stablecoins within the European Union, setting out the regulatory framework for their issuance, circulation and use. Stablecoins are crypto-assets whose value is pegged to specific underlying assets, such as fiat currencies, commodities, or baskets of assets. This ensures price stability, making them attractive for payments, value storage, and investments.
Within MiCA, two main types of stablecoin are classified. The first type is Asset-Referenced Tokens (ARTs), whose value is tied to several assets, currencies or baskets of commodities. The second type is Electronic Money Tokens (EMTs), which are pegged to a single official currency, such as the euro or the US dollar. Both types are subject to strict regulation, including the licensing of issuers, mandatory reserving, the disclosure of information and the protection of holders.
Stablecoin issuers must obtain authorisation from the relevant EU member state’s national regulator. They must also detail their business model, the mechanisms used for backing and risk management, and provide a description of the issuance model, reserves and guarantee structures. Reserves must be held in liquid and secure assets, such as bank deposits or government bonds with minimal credit risk. This ensures that holders can redeem tokens at any time.
The regulation also emphasises transparency and consumer protection: issuers must regularly publish data on the composition of reserves, audit results and changes in backing. Additionally, holders are granted the right to redeem tokens at face value, as well as access to a compensation mechanism in the event of issuer default or loss of liquidity. For issuers whose activities may have a significant systemic effect — for example, large-scale stablecoins with high circulation — MiCA provides enhanced supervision in the form of higher capital requirements, mandatory reporting, risk control and integration into EU payment systems. Thus, the regulation aims to protect users and reduce systemic risks to financial stability.
Implementing MiCA in the stablecoin sphere opens up new opportunities for issuers, including legal certainty, access to the single EU market and increased trust from institutional investors and users. However, compliance with the regulation requires significant effort, including preparing legal documentation, implementing risk management, ensuring reserves, interacting with regulators and continuously monitoring regulatory changes. Companies planning to issue stablecoins in Europe should therefore choose an appropriate jurisdiction in advance, prepare the corresponding structure, and formulate policies for reserving, disclosure, and holder protection. Failure to comply may result in the inability to legally issue or operate with a token in the EU market.
Overall, MiCA marks a new stage in the regulation of crypto assets: stablecoins operating in compliance with the regulation gain legitimacy and a stable foundation for development. This contributes to their integration into Europe’s financial ecosystem and strengthens trust among market participants.
The Markets in Crypto-Assets Regulation (MiCA) establishes uniform rules for the issuance and circulation of tokens within the European Union, including utility tokens, asset-referenced tokens and other types of digital assets. The aim is to create a transparent and predictable legal environment for token projects, strengthen the protection of holders, and eliminate legislative gaps in the field of crypto-assets.
Tokens falling under MiCA must comply with a number of requirements. The issuer must register or obtain authorisation in the relevant EU Member State, ensure an appropriate governance and internal control structure, and prepare and publish technical and legal documentation (usually a white paper) disclosing the key characteristics of the token, its operating mechanism, user rights, risks and business model. Depending on the type of token, additional requirements may apply regarding asset reserves, liquidity provision, security controls, and data protection.
The choice of jurisdiction is one of the most important strategic decisions. Different EU countries are implementing MiCA at different speeds and have different approaches to licensing and supervising token projects. Some jurisdictions are perceived as more favourable for start-ups due to simplified procedures or more lenient regimes.
MiCA opens new opportunities for token projects: legal certainty makes such projects more attractive to investors and partners, enabling them to scale across EU markets and reducing legal risks. However, complying with the regulation requires significant resources, including project documentation, the implementation of risk management procedures, monitoring, compliance with data protection requirements and interaction with supervisory authorities.
Thus, MiCA sets a clear standard for token projects in the European market, requiring issuers and platforms to take a comprehensive approach to launching and supporting tokens, from choosing a jurisdiction and preparing a structure, to disclosing information, managing risks, and continuously monitoring changes in the regulatory environment.
Regulation (EU) 2023/1114, better known as the Markets in Crypto-Assets Regulation (MiCA), also covers cryptocurrency mining activities, primarily from the perspectives of sustainability, transparency and compliance with environmental requirements. Mining involves creating new crypto-assets through computational processes and distributed ledgers, which often involves significant energy consumption. MiCA recognises that mining activities can create environmental and systemic risks; therefore, the regulation introduces requirements for companies engaged in mining to provide data on energy consumption and environmental impact, and to ensure a sustainable business model. In particular, mining companies must disclose information about the environmental impact of their activities, comply with ESG (environmental, social and corporate governance) principles and use more energy-efficient technologies.
Additionally, MiCA requires organisations carrying out mining activities to register and obtain a licence from the competent authorities of the EU member state in which they operate. Such licensing enables supervision, increases the transparency of operations and helps to prevent illegal or non-transparent activities in the cryptocurrency market. To protect investors and market participants, a company’s activities must be backed by guarantees of reliability and operational stability to reduce the risks associated with mining.
Thus, under European regulation, cryptocurrency mining becomes a more formalised activity, subject to mandatory information disclosure, energy efficiency verification, registration and compliance with sustainability standards. While this creates additional requirements for mining operators, it also opens opportunities for integration into the legal and regulated crypto-asset market in Europe.
MiCA regulation for decentralised finance
The MiCA regulation covers a wide range of crypto-asset operations and aims to ensure transparency, sustainability and protection for market participants. One area that receives particular attention is decentralised finance (DeFi), which involves providing financial services through blockchain applications without the use of traditional intermediaries. DeFi includes lending platforms, asset exchanges, insurance and investment services that operate through smart contracts and decentralised protocols.
According to MiCA, DeFi projects may fall under the regulatory regime as crypto-asset service providers (CASP), even in the absence of a centralised intermediary. This means that such projects must disclose information about how they function, providing a detailed description of protocol mechanisms, liquidity models, smart contract systems and the real risks associated with user participation. They must also ensure that they are registered or authorised by the competent authority of an EU member state, and establish a risk management system that covers operational and technological risks, user protection, and the provision of reserves for liquidity.
MiCA also emphasises the need to comply with sustainability standards, including the use of energy-efficient algorithms and measures to reduce environmental impact. In the context of DeFi, this means that projects must consider the environmental impact of their infrastructure and promote the responsible use of technology. At the same time, users of DeFi platforms are protected by requirements regarding participant rights, ensuring the return of funds, and mechanisms for responding to failures in smart contracts or manipulations associated with protocol development.
The transition of DeFi projects to the MiCA framework presents certain challenges. These include changes to the business model and technical architecture, the introduction of regulatory notification procedures and the preparation of full documentation packages, all of which require significant resources. Nevertheless, the legal certainty provided by MiCA creates opportunities for new projects to attract institutional participation, grow within the European market and boost investor confidence. In some cases, hybrid models emerge, combining elements of decentralised and centralised finance (CeDeFi), which balance the advantages of autonomous management with compliance under regulated conditions.
Taking this into account, DeFi projects considering operating within the EU or involving European users must plan their MiCA compliance strategy in advance, selecting the appropriate jurisdiction and carrying out the necessary legal and technical preparations, as well as building processes for disclosure, risk management and user protection. Only a comprehensive approach will enable them to maintain sustainable operations, avoid regulatory risks and leverage the benefits of the single European crypto-asset market effectively.
MiCA regulation for tokenisation
The MiCA regulation establishes a legal framework for the tokenisation of assets within the European Union. This is an important step in the integration of distributed ledger technology (DLT) into traditional economic sectors. Tokenisation involves converting real or digital assets, such as real estate, works of art, business shares, commodity stocks or other valuable rights, into digital tokens that are registered on a blockchain and can be freely transferred, divided and distributed among investors. This model significantly increases asset liquidity, lowers entry barriers, and simplifies the investment process.
MiCA aims to ensure that companies engaged in tokenisation can access the EU single market without having to navigate fragmented national rules. The regulation requires token issuers to publish comprehensive documentation disclosing the tokens’ characteristics, associated functions, risks, and issuance conditions. The regulation sets out strict requirements for issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs), including licensing, reserve backing, reporting regimes and the protection of token holders’ rights.
For companies applying the tokenisation model, transitioning to the MiCA framework requires adapting the business model. This involves structuring the token issuance process in accordance with regulatory requirements, defining reserve and risk management structures, ensuring the protection of user funds, and preparing the appropriate technical and legal documentation.
While the implementation of MiCA creates a favourable environment for the growth of the tokenised asset market by opening opportunities for scaling, attracting institutional investors and integrating tokens into the EU financial system, it also requires significant resources and preparation.
Thus, MiCA strikes a balance between innovation and regulation by establishing conditions for the active introduction of tokens into traditional asset classes while introducing strict standards for investor protection, disclosure and reserve requirements. This transforms the tokenisation industry into a regulated and transparent sector that complies with European financial law standards.
MiCA regulation for Blockchain projects
Regulation (EU) 2023/1114 (MiCA) establishes a legal framework applicable to blockchain technology projects that implement crypto-assets or related services. This creates a clear and predictable regime for such initiatives within the European Union. Projects using blockchain technologies — whether token issuance platforms, smart contracts, decentralised applications, or distributed ledger infrastructures — must assess whether they fall under MiCA. The primary focus is on projects that issue crypto-assets, release tokens, or provide services for processing, exchanging, or storing digital assets, since MiCA specifically covers the issuance, offering, and circulation of such assets, as well as the provision of related services.
A project must establish two key components: legal preparation and operational structure. Legally, the project’s nature, internal governance, and the registration of a legal entity in an EU jurisdiction must be defined, as well as the presence of appropriate governing bodies and control mechanisms. Operational tasks include implementing risk management policies and information security protection, as well as AML/KYC (anti-money laundering and customer identification) procedures. Projects must also prepare documentation disclosing their characteristics, operating mechanisms, and user rights.
MiCA also strengthens transparency requirements: projects must clearly inform users and investors about how they operate, the associated risks, the terms of token or service use, protection mechanisms and, where applicable, reserve backing. When launching and operating a platform, it is important to ensure audit capability and constant readiness to interact with supervisory authorities, as well as independent verification.
For blockchain projects, implementing MiCA requires additional investment in infrastructure and processes. However, it also opens the way to significant advantages, such as access to the single European market, increased trust from users and investors, and opportunities for international expansion.
Ultimately, projects planning blockchain and crypto-asset activities targeting the EU market or European users must prepare a MiCA compliance strategy in advance, including choosing a jurisdiction, conducting a legal assessment, implementing procedures and internal policies, preparing documentation, and conducting ongoing regulatory monitoring and ensuring readiness for adaptation. This comprehensive approach reduces regulatory risks and enables the effective exploitation of the advantages of integrating digital assets into the European legal environment.
The MiCA regulation establishes a legal framework applicable to the infrastructure elements of blockchain systems, such as nodes. A node is a device or software module connected to a decentralised network that stores a copy of the distributed ledger and participates in consensus, validation or transaction transmission. While MiCA does not explicitly name every category of infrastructure, activities carried out by nodes for commercial purposes are subject to regulatory scrutiny and require an assessment of compliance with the regulation’s requirements.
If a node operator provides services related to crypto-assets — for example, ensuring node infrastructure for token issuers, exchanges, or other crypto service providers — then they may fall under the MiCA regime as a crypto-asset service provider (CASP). In such a case, the operator must register or obtain authorisation from the competent authority of an EU Member State, implement risk management, transparency and security policies, ensure data and user protection, carry out AML/KYC procedures and comply with disclosure requirements for operations. However, nodes that function solely as technical components of the network and do not provide regulated services may be exempt from authorisation requirements. Nevertheless, the operator may still need to comply with data security, cybersecurity, and user protection standards.
A key requirement is transparency regarding the node’s operational infrastructure: the operator must be prepared to provide information on the technical architecture, consensus algorithms, data storage volumes and nature, backup measures, and protection against failures. This helps to reduce the risks of network disruptions, manipulation or loss of user data. The regulation also establishes the liability of node operators for compliance with standards, and sanctions may be applied in case of violations, including fines and restrictions on activities.
Projects and companies operating nodes who wish to ensure their activity within the EU or in the interests of European users must develop a MiCA compliance strategy. This should include legal registration, establishing internal governance and control structures, ensuring business continuity and data protection, and monitoring changes in the regulatory environment.
Consequently, regulating nodes under MiCA enables operation in the European market with a higher level of trust and transparency. However, it also requires infrastructure operators to invest significantly in security, documentation and risk management. Nevertheless, for those ready to adapt and implement best practices, the regulation paves the way for sustainable development and legitimate participation in the EU crypto-asset ecosystem.
In the Czech Republic, the adoption of the Financial Market Digitalisation Act, which was signed by the president on 6 February 2025, marked the beginning of a new stage in the regulation of crypto-assets. The law came into force on 15 February 2025, granting the Czech National Bank (Česká národní banka, ČNB) authority to oversee the digital asset market and implement MiCA provisions. Until then, the ČNB lacked the institutional competence to process applications and notifications under MiCA, but the new law fills this legislative void by assigning the regulator functions such as licensing crypto-asset service providers (CASP), supervising token issuers and registering white papers.
A transitional regime has been established for companies already operating in the market before 30 December 2024: they may continue their activities until they obtain a MiCA licence, provided they submit an application by 31 July 2025. At the same time, the final expiration date for old licences issued by the Czech Trade Office is 1 July 2026. New market entrants are required to operate under the new regime from day one, from the moment MiCA entered into force.
The Czech model of CASP licensing provides for three classes, depending on the complexity and range of services offered. Class 1 covers basic services without asset custody, such as order transmission and advisory services. The minimum share capital for this class is €50,000. Class 2 includes custody of assets and crypto/fiat exchange and requires a minimum of €125,000 in capital. Class 3 is intended for trading platform operators and requires capital of at least €150,000. Stablecoin and electronic money token issuers are subject to even stricter requirements, similar to e-money institution licences, with a minimum capital requirement of up to €350,000 or more depending on issuance volumes.
The licensing procedure includes confirmation of the company’s legal status, ownership structure, business model, three-year development strategy, financial model, sources of capital, AML/KYC policies, and description of IT security systems and client fund protection. In cases of token issuance, a white paper must also be published. Management and shareholders are subject to checks on business reputation, criminal records and the transparency of their finances. One of the directors must be a tax resident of an EU country. Particular attention is given to information security, IT infrastructure and compliance with the rules of the Digital Operational Resilience Act (DORA).
Companies that fail to comply with MiCA and national law may face sanctions, including fines of up to €15 million or up to 15% of turnover, suspension of activities, licence revocation and inclusion in the registry of high-risk entities. Significant interest is also being shown in innovations in tax regulation: from 2025, ‘time test’ and ‘value test’ mechanisms will be introduced, under which income may be exempt from taxation provided crypto-assets are held for at least three years and annual transaction income does not exceed CZK 100,000. However, these rules do not apply to stablecoins — any transactions involving them continue to be treated as taxable events. The legal status of electronic money tokens or stablecoins remains uncertain, increasing tax risks and requiring enhanced legal caution from market participants.
Overall, the domestic implementation of MiCA in the Czech Republic establishes a legal framework in which cryptocurrencies and tokenised products are subject to institutional supervision rather than operating outside regulation. This creates conditions for increased transparency, investor trust and the sustainable development of the digital market, while simultaneously raising compliance requirements for operators.
In Lithuania, the entry into force of MiCA marked an important stage in the legal regulation of crypto-assets and related services. Since the end of 2024, the regulation of crypto-asset markets based on MiCA has begun to be applied in the country, marking the start of a new stage in the development of digital financial services. The national authorities provided a short transitional period during which crypto-asset service providers (CASP) had to prepare and obtain the necessary authorisation. The Bank of Lithuania is the main supervisory authority, responsible for licensing and supervising CASPs under MiCA. Companies providing crypto-asset services, such as exchange, custody and token issuance, are required to obtain authorisation or submit an application for it by the established deadline. Companies that were already operating in the market before MiCA came into force were granted until 1 June 2025 to submit the relevant documents. After this date, any activity without a licence must cease, including providing services in other EU member states.
For Lithuania, MiCA means mandatory compliance with risk management, disclosure and client protection requirements. Service providers must present a business model, AML/KYC policy, and demonstrate technical and operational resilience. They must also comply with rules on liquidity provision, user asset protection, and the organisation of internal controls. Enhanced regulation applies to asset-referenced tokens (ART) and electronic money tokens (EMT), requiring reserves and granting rights to token holders. Lithuania’s transitional regime was one of the shortest in the European Union, meaning that the market had to adapt quickly. This created an incentive for participants to prepare and implement all necessary procedures promptly. At the same time, the speed of implementation increases investor and user trust in the Lithuanian jurisdiction, as the regulator demonstrates its readiness to ensure transparent and proper control of crypto-asset circulation.
Lithuania is seeking to use the implementation of MiCA as an opportunity to strengthen its position in the European digital asset sector and attract international business. However, achieving this strategic goal presents the challenge of balancing technological development flexibility with strict regulatory requirements. Companies must therefore be prepared to invest in security infrastructure, structured procedures and continuous monitoring of changes in the regulatory environment. For projects planning to carry out activities involving crypto-assets or services in the EU through Lithuania, it is essential to start preparing strategically early on: selecting an operating company and jurisdiction, developing corporate and operational documentation, implementing client protection processes and ensuring compliance with regulatory requirements. Only such a proactive approach enables the advantages of the Lithuanian jurisdiction to be leveraged while meeting the high standard of European crypto-asset regulation.
In Poland, the implementation of the MiCA regulation involves actively adapting national legislation to EU-wide requirements. Before MiCA came into force, the country’s crypto market was mainly regulated through anti-money laundering (AML) and counter-terrorist financing (CTF) legislation, with no separate law dedicated to crypto-assets. To ensure compliance with the new European framework, the Polish authorities have prepared a draft Crypto Asset Market Act. This is intended to establish a licensing system for crypto-asset service providers (CASP) and assign supervisory authority over this sector to the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego, KNF). The new regime will require all companies providing custody, exchange, trading or issuance of crypto-assets to obtain a licence.
For existing operators, a transitional period has been provided: previously registered service providers will be able to continue their activities until they obtain a CASP licence, but no later than July 2026. After this deadline, operating without authorisation will be considered a violation and will result in administrative sanctions.
The introduction of MiCA in Poland will create significant structural changes in the market. The regulation sets out requirements relating to minimum capital, internal controls, transparency of corporate structures, protection of client assets, disclosure obligations and risk management. While these measures are intended to increase trust in the market, they may also lead to a reduction in the number of smaller operators who are unable to meet the new standards.
Poland is seeking to establish a regulatory system that will integrate the domestic digital asset market into the EU’s unified legal framework. Key tasks for companies operating in the crypto sector include preparing for licensing, implementing AML/KYC procedures, developing compliance policies and creating transparent governance structures. This approach will strengthen Poland’s position as a crypto industry hub in Central Europe and provide legal certainty for investors and market participants.
Obtaining a MiCA licence in Estonia
In Estonia, a legal entity must be registered in one of the European Union member states and have a management structure and administrative presence in the country in order to obtain a licence to operate with crypto-assets under the MiCA regulation. Companies planning to operate in the crypto-asset sector must prepare a complete package of documents, including incorporation documents, a business plan, financial forecasts, a description of risk management models, an anti-money laundering (AML) and customer identification (KYC) policy, and a description of IT infrastructure and security mechanisms. These documents are submitted to the regulator for review and authorisation.
The regulator not only assesses the company’s compliance with the established requirements, but also its ability to ensure sustainable operations, protect client interests, manage operational and technological risks, and maintain a high level of transparency. Once the licence is obtained, the company is entitled to provide crypto-asset services throughout the European Economic Area via the ‘passporting’ mechanism. This enables companies registered in Estonia to offer services in other EU countries without requiring additional licences.
Estonia is considered one of the most attractive jurisdictions for obtaining a MiCA licence thanks to its advanced digital infrastructure, transparent regulatory system and favourable conditions for innovative businesses. The country has a modern legal framework that supports the implementation of distributed ledger technologies (DLT) and digital financial solutions. However, companies choosing Estonia should be aware that MiCA’s requirements for internal controls, corporate governance and reporting are quite demanding. This requires significant investment in compliance, legal preparation and the development of robust internal processes.
Thus, MiCA licensing in Estonia provides companies with access to the European digital asset market, ensuring legal certainty and investor trust. However, successful licensing requires applicants to undertake comprehensive preparation, establish a well-designed organisational structure, and be prepared for ongoing interaction with the regulator.
In Germany, obtaining a licence under MiCA involves meeting a comprehensive set of requirements aimed at ensuring transparency, financial stability and reliability when operating in the European Union’s single market. These requirements apply to crypto companies and crypto-asset service providers (CASPs). The procedure requires the legal entity to be registered in Germany or another EU member state, and to have effective management and an organisational structure capable of fulfilling regulatory obligations. One of the key conditions is demonstrating a good business reputation among the company’s management and owners, with no suspicions of involvement in money laundering, terrorist financing or serious violations. Acquisition of shares in a company after issuance of a licence is also subject to review by the regulator if such a transaction could jeopardise the stability, legality or reliability of the licensed entity.
The financial stability of the applicant also plays an important role: the transparency of capital sources must be substantiated, as well as proof that the company is able to meet its obligations to token holders or clients. The German regulator can deny a licence or impose conditions if the planned participation, shareholders or ownership structure do not meet MiCA standards. This approach helps to prevent undesirable influence, hidden interests or conflicts that could undermine user protection and market stability.
Once licensed in Germany, a company can provide services across the European market and has the option of ‘passporting’ — that is, expanding its activities to other EU member states without needing separate authorisation in each country. This makes Germany an attractive jurisdiction for international projects seeking to scale up.
Nevertheless, obtaining a licence in Germany involves meeting a significant number of governance, control and ongoing interaction requirements with the regulator. Companies must be prepared to implement comprehensive systems for risk management, compliance, IT security and data protection, and maintain transparency with supervisory authorities.
In conclusion, the German MiCA licensing model combines strict standards with the opportunity to access the large European market. For entrepreneurs and businesses in the crypto-asset sector, careful preparation, the right organisational structure and a solid compliance strategy are therefore key to successfully obtaining a licence and ensuring sustainable operations in the EU.
MiCA licence in the Netherlands
The Markets in Crypto-Assets Regulation (MiCA) licensing framework in the Netherlands was one of the most rapid and well-structured introductions among European Union countries. Starting on 22 April 2024, the national regulator, the Autoriteit Financiële Markten (AFM), began accepting applications for CASP (crypto-asset service provider) licences under MiCA. Licences approved in this way came into effect on 30 December 2024. A transitional period until 30 June 2025 was provided for companies already operating in the market, during which they could adapt to the new regime and prepare an application for licensing. After this date, operating without authorisation will be considered non-compliance with MiCA requirements.
The licensing process covers a wide range of services, including the exchange of crypto-assets for fiat currencies, the custody of client assets, platform management, advisory services and other types of crypto-asset activities. Applicants must submit detailed documentation, including their business model, risk management system, IT infrastructure security measures, and plans for safeguarding client assets, as well as evidence of compliance with anti-money laundering (AML) and customer identification (KYC) obligations. Managers and individuals controlling the company are subject to reliability and experience checks.
Obtaining a licence in the Netherlands grants the right of ‘passporting’ — meaning that, once issued, a company can provide crypto services in other EU markets without needing separate authorisation in each country. This makes the Dutch jurisdiction attractive for international crypto and fintech projects.
Thus, the MiCA licensing model in the Netherlands combines high regulatory standards with rapid implementation and the potential for expansion across the EU market — a significant advantage for companies seeking to operate within the European crypto-asset sector.
In France, the implementation of the Markets in Crypto-Assets (MiCA) regulation was the next logical step in the digital asset regulatory framework, which has been in place since 2019 under the PSAN (Prestataire de Services sur Actifs Numériques) status. The French regulatory system was one of the first in Europe, which is why the transition to MiCA is progressing smoothly, with many companies already partially compliant with the new requirements. The competent authority responsible for licensing crypto-asset service providers (CASP) is the Autorité des Marchés Financiers (AMF – Financial Markets Authority). Together with the Autorité de Contrôle Prudentiel et de Résolution (ACPR), the AMF oversees MiCA compliance, as well as the implementation of anti-money laundering and counter-terrorist financing measures, client protection and corporate governance.
To obtain a MiCA licence, a company must be registered in a European Union member state and have a representative office or branch in France. The application must be accompanied by an extensive package of documents, including a business plan, a financial model, a description of the organisational structure and internal policies for risk management, AML/KYC and technical infrastructure, as well as cybersecurity measures. The company’s management and shareholders undergo checks relating to their reputation, competence and financial stability. The regulator pays particular attention to the transparency of capital sources and corporate structure, as well as ensuring there are no conflicts of interest. The French MiCA licensing model is characterised by a high degree of formalisation and strict internal control requirements. Companies must have robust systems for corporate governance, internal auditing and an independent compliance function, as well as effective mechanisms for safeguarding client assets. Share capital must correspond to the scale of activity, with reserves in place to cover operational and market risks. Different levels of licensing are provided for crypto-asset service providers, depending on the scope of their services and their degree of market involvement.
Once a MiCA licence has been obtained, a company gains the right to ‘passporting’, which allows it to provide its services in other European Union countries without the need for separate authorisation. This makes France a strategically attractive jurisdiction for international crypto projects seeking to operate across the entire EU market. However, maintaining the licence requires continuous compliance with MiCA standards, including reporting, regular audits and ongoing cooperation with the AMF.
France also remains one of the few countries where government authorities actively cooperate with the crypto industry. The AMF consults with market participants, publishes clarifications on the implementation of MiCA, and assists companies in adapting to the new rules. This creates a predictable and stable legal environment in which international projects can plan long-term operations.
Thus, obtaining a MiCA licence in France provides companies with access to the European market, provided they strictly comply with regulatory standards. France combines a reputation as a reliable financial centre with a high level of regulatory expertise and developed infrastructure for crypto and fintech projects, making it one of the most attractive entry points for businesses seeking legal and scalable operations in the EU.
Obtaining a MiCA licence in Malta
In Malta, the process is regulated by the national supervisory authority, the Malta Financial Services Authority (MFSA), and is based on an updated legislative framework, including the Markets in Crypto-Assets Act and related regulations. Malta considers itself a pioneer in crypto-asset regulation and aims to grant access to the European Union’s single market via the ‘passporting’ mechanism for licences obtained in Malta.
Applicants wishing to obtain a licence under MiCA must prepare a detailed package of documents. This includes a business plan describing the service model, technological and operational infrastructure, risk management system, cybersecurity, internal control and client asset protection. They must also disclose their corporate governance structure and name their directors and shareholders. They must confirm the reputation and competence of these individuals and demonstrate the company’s financial stability with transparent sources of capital.
Malta offers an attractive environment with developed infrastructure, regulatory experience and contractual access to the EU market. However, preparing for a licence requires significant effort. Companies must ensure they comply with MiCA requirements regarding client protection, internal AML/KYC procedures, technical infrastructure and reporting to the regulator. A licence obtained in Malta enables companies to operate across the entire EU market without requiring separate authorisation in each member state.
At the same time, however, the Maltese regulator has been under increased scrutiny from EU supervisory authorities, with a review noting that licences may have been granted too quickly without a thorough risk assessment. Nevertheless, the MFSA states that it is working to address these concerns and strengthen its authorisation and supervision processes.
For companies choosing Malta as the jurisdiction in which to obtain a MiCA licence, timely preparation is crucial: they must select the legal structure, set up management and operational infrastructure, formalise compliance and risk procedures, and plan resources for ongoing compliance. Successfully completing the process provides access to EU markets with legal certainty and the reputation of a reliable licence.
In Cyprus, regulation in the field of crypto-assets is moving to a new level with the introduction of MiCA. The regulation will come into force across the European Union on 30 December 2024, at which point member states will be required to align their national legislation accordingly. In Cyprus, the Cyprus Securities and Exchange Commission (CySEC) oversees crypto services, maintaining the register of crypto-asset service providers (CASP) and monitoring their activities under MiCA. Prior to the entry into force of the new rules, the regulator suspended the acceptance of new registration applications under the previous regime, ensuring a smooth transition to the updated system. Activities that will be regulated include exchanging cryptocurrency for fiat currencies, transactions involving crypto-assets, and the custody and administration of assets (including management of access keys). This also covers the issuance and sale of crypto-assets, as well as the provision of investment services relating to crypto-assets, such as portfolio management, advisory services, underwriting, and token placement. MiCA covers issuers, service providers and crypto-asset trading platforms. Conversely, projects and tokens that already fall under the remit of other regulations, such as those governing financial instruments, deposits, securitisation products, or insurance/pension instruments, are excluded from MiCA’s scope.
Cyprus does not have a separate tax regime specifically designed for cryptocurrencies; taxation depends on the nature of the activity and how income is classified. For instance, company profits are taxed at a corporate rate of 12.5%, whereas personal income is taxed progressively from 0% to 35%. The exchange of cryptocurrencies for fiat currencies is exempt from VAT based on a European Court precedent (case C-264/14). Cyprus remains an attractive jurisdiction for international crypto businesses due to its favourable tax regime, regulatory flexibility, and access to the EU market. However, the implementation of MiCA requires active adaptation by companies, involving structural preparation, internal procedures and cooperation with banks, all of which are becoming increasingly complex.
As part of the preparations for MiCA, the Cypriot government, through the Ministry of Finance and the relevant authorities, has developed a draft law, ‘Cryptocurrency Markets 2025’, which aims to integrate MiCA requirements into national law. The draft clarifies the supervisory authority’s powers, introduces sanction mechanisms and establishes adaptation deadlines. Crypto-asset service providers in Cyprus will be required to obtain a CASP licence from CySEC by 31 December 2025 at the latest. A VAT rate of 19% is provided for non-contextual token collections (NFTs) that are recognised as digital goods.
Thus, Cyprus offers international companies the opportunity to operate under European regulation and gain access to the EU market through the ‘passporting’ mechanism of a licence from one jurisdiction. However, early preparation and investment in compliance and infrastructure remain critically important. For those ready to adapt, a MiCA licence in Cyprus could be a valuable asset for accessing the European market.
In Austria, the registration and licensing of crypto-asset activities under MiCA are carried out through national legislation that marked the country’s transition to the EU’s unified legal framework. The MiCA-VVG Act, approved on 3 July 2024 and effective from 20 July 2024, designates the Austrian Financial Market Authority (FMA) as the national supervisory authority responsible for issuing licences to crypto-asset service providers (CASP), as well as supervising their subsequent activities. The regulation establishes that the CASP authorisation regime and other key provisions of MiCA will come into full effect on 30 December 2024. As of 30 June 2024, the rules concerning issuers of asset-referenced tokens (ART) and electronic money tokens (EMT) will already be in place. Through this national legislation, Austria ensures that companies operating in this field align their processes and legal structures with the required standards.
To obtain a licence in Austria, an applicant company must meet strict requirements. These include having sufficient share capital, a transparent business model, effective risk management and internal control procedures, anti-money laundering (AML) and customer identification (KYC) systems, reliable IT infrastructure and measures to safeguard client assets. Special attention is given to issuers of stable tokens — ART and EMT. In such cases, companies are required to maintain reserves, provide token redemption rights for holders, and ensure a high level of disclosure. They must also prepare a white paper containing detailed information on the technology, structure, issuance terms and associated risks.
Obtaining a MiCA licence in Austria gives companies access to the single European market through the ‘regulatory passport’ mechanism: once authorised in Austria, an organisation can provide services in other EU member states without having to secure separate authorisations in each country. This makes Austria a strategically attractive jurisdiction for international crypto and fintech companies. However, the licensing process requires a high level of preparedness: companies must have a solid management structure, established internal procedures, qualified leadership and a strong reputation in place well in advance. Market participants note that compliance with the new regulations strengthens investor trust and makes the Austrian crypto-asset market more predictable and structured.
In summary, obtaining a MiCA licence in Austria involves strict regulatory requirements but also represents a strategic opportunity to access the EU market. For those ready to invest in compliance and adapt their business model to the new standard, licensing opens up a whole new world of prospects and access to a new level of trust and institutional resilience.
In Spain, Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA) is implemented without significant national derogations. This means that the unified European legal regime applies directly to companies providing crypto-asset services in Spain. The main supervisory functions are divided between the Comisión Nacional del Mercado de Valores (CNMV), which is responsible for most crypto-asset service providers (CASP), and the Banco de España, which oversees issuers of asset-referenced tokens and electronic money tokens, as well as monitoring compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) requirements.
Different categories of licensing are established for CASPs in Spain depending on the scope of services provided and the minimum capital. The first category requires €50,000 of capital and allows companies to provide basic services, such as the execution and transmission of client orders, the placement of crypto-assets, the transfer of assets, advisory services and portfolio management. A transitional regime is provided for companies already active in the market before 30 December 2024: such companies may continue operations until the end of the transition period or until their registration is refused under the new regime. Once the transition period has ended, legal operations in Spain will only be possible with full CASP authorisation under MiCA.
MiCA regulation in Spain introduces strict transparency and user protection requirements: issuers must publish a comprehensive white paper about the tokens, and service providers must comply with rules on corporate governance, internal control, cybersecurity and AML. Spain has also accelerated the adoption of MiCA, setting the deadline for the full transition to the new rules as 31 December 2025. This makes Spain one of the jurisdictions with the clearest and most condensed implementation timeline.
Thus, obtaining a MiCA licence in Spain enables companies to access the EU market via the ‘passporting’ mechanism — after receiving authorisation in Spain, they can provide services in other member states without needing separate licences. However, this requires significant legal, financial and operational preparation to ensure compliance with all elements of the new standards.
In Ireland, the introduction of the MiCA regulation marks a new stage in the regulation of crypto-assets and related services. Previously, companies providing cryptocurrency services were primarily registered as Virtual Asset Service Providers (VASPs) under anti-money laundering (AML) and know-your-customer (KYC) regulations. From 30 December 2024, it has been mandatory for exchanges, platforms, custodial services and other crypto providers serving Irish clients to obtain a licence as a Crypto-Asset Service Provider (CASP) under MiCA.
Licences are issued by the Central Bank of Ireland, which has assumed the role of supervisory authority under MiCA. To obtain a CASP licence, a company must have statutory capital ranging from approximately €50,000 to €150,000, depending on the range of services provided. It is also required to separate client funds from corporate funds, have detailed incident response plans and a cybersecurity system in place, and appoint managers based in Ireland who meet the criteria of professional competence and integrity. Special rules have been introduced for issuers of stable tokens (ART/EMT) regarding reserve requirements and redemption rights for token holders.
The Irish model provides for a short transition period: companies registered as VASPs before MiCA came into force must apply for a licence by the end of 2025. Operations without CASP authorisation after the set deadline will be considered illegal. The licensing process consists of a preliminary consultation with the regulator, submission of a key information package and a full review of the application. Under the regulation, this must be completed within 40 working days of submitting the full documentation package.
There are several advantages to choosing Ireland as a jurisdiction for obtaining a licence: an English-speaking environment, membership of the European single market and a regulator prepared for regulatory oversight. Once a CASP licence has been obtained, a company gains the right to provide cryptocurrency services throughout the European Union via the passporting mechanism. However, the regulator expects applicants to do more than just obtain the licence formally; they must also maintain a sustainable and transparent operational structure, be ready for continuous supervision and comply fully with MiCA requirements in the areas of client protection, risk management, security and reporting.
For companies considering entering the European market through Ireland, the key tasks are:
– Early contact with the regulator
– Preparation of a business model and documents in line with the scope of services
– Ensuring a real presence in Ireland, including an office, management and local governance
– Implementation of AML/KYC procedures, cybersecurity, client asset protection and internal control mechanisms
– Planning for ongoing compliance after the licence is granted
In conclusion, a MiCA licence in Ireland represents a strategic opportunity to access the EU market, but it requires serious preparation, resources and a proactive approach.
In conclusion, a MiCA licence in Ireland represents a strategic opportunity to access the EU market, but it requires serious preparation and resources, as well as a proactive approach.
Obtaining a CASP (Crypto Asset Service Provider) licence in Luxembourg under MiCA is a strategic move towards utilising the ‘crypto passport’ regime, granting the right to provide services across the European Union without requiring separate licences in each country. As one of Europe’s leading financial centres, Luxembourg emphasises the importance of this new regime. Previously, companies could operate under VASP (Virtual Asset Service Provider) registration with the supervision of the Commission de Surveillance du Secteur Financier (CSSF). However, MiCA requires a far more comprehensive approach in terms of corporate governance, information security, prevention of market abuse and management of conflicts of interest.
The Luxembourg regulator has officially announced that the first MiCA licences will not be issued until July 2026 — this is due to the need to finalise Level 2 and Level 3 technical standards at EU level. During the transitional period, registered VASPs can continue to operate nationally until the specified date. However, companies planning to obtain a CASP licence must prepare in advance to comply with the new requirements.
Key areas of preparation include establishing transparent corporate structures and governance systems, building reliable IT infrastructure with robust cybersecurity measures, creating internal risk management policies and reporting systems, and ensuring clear segregation of client and company assets. In its national AML/CFT risk assessment report, Luxembourg classified the crypto-asset sector as ‘high risk’, strengthening requirements for customer identification procedures, transaction monitoring and internal auditing.
Companies aiming to obtain a licence should begin preparing documentation, define a governance strategy and structure, assess business compliance with MiCA requirements, select the optimal EU jurisdiction, and ensure readiness for interaction with the CSSF. Luxembourg is an attractive licensing hub due to its experience in financial services regulation, its advanced digital asset infrastructure, and the opportunity to leverage the single market mechanism.
In conclusion, MiCA licensing in Luxembourg offers opportunities and obligations: access to the EU market and increased investor confidence, and the need for serious preparation, investment and continuous regulatory compliance. For companies ready for this, Luxembourg becomes an attractive jurisdiction for sustainable and legitimate operations in the crypto-asset sector.
Finland has implemented the Markets in Crypto-Assets Regulation (MiCA) faster and more clearly than any other country in the European Union. Supervision of the activities of crypto-asset service providers (CASPs) is carried out by the Finnish Financial Supervisory Authority (FIN-FSA). For companies providing crypto-asset services, such as token custody, crypto-to-fiat exchange, platform management, order transmission or advisory services, obtaining CASP authorisation has been mandatory since the full implementation of MiCA.
At the same time, Finland introduced a transitional period whereby companies registered under the national regime prior to the new law coming into force could submit licence applications until 30 October 2024 and continue operating until 30 June 2025 or until the regulator made its decision. After this date, operating without the appropriate authorisation will be considered a violation.
Internal requirements include providing a detailed business model and description of technical and operational infrastructure, as well as clear risk management, information security and client asset protection procedures. Companies must also prepare a white paper when issuing ART (asset-referenced tokens) and EMT (electronic money tokens). These requirements are equivalent to those applied to traditional financial institutions and include an assessment of the reliability of management and shareholders, minimum own funds, and a corporate governance framework.
Once licensed in Finland, an organisation can provide services throughout the EU via the passporting mechanism. This makes the Finnish jurisdiction attractive for international crypto and fintech projects seeking to operate in the European market. Overall, the Finnish licensing model under MiCA represents a combination of strict regulatory compliance, a high level of user protection and scalability potential. However, timely preparation remains key: companies must adapt their structure, procedures and documentation in advance to ensure business continuity and market participation.
FREQUENTLY ASKED QUESTIONS
What is MiCA and why was it adopted?
The MiCA Regulation (Regulation (EU) 2023/1114 on Markets in Crypto-Assets) is a legal act of the European Union aimed at creating a unified legal framework for the crypto-asset market. Its purpose is to ensure transparency, investor protection, and financial system stability while supporting innovation. MiCA introduces uniform standards for token issuers and crypto-asset service providers (CASPs) across all EU countries.
Which crypto-assets does MiCA regulate?
MiCA covers most types of tokens, with the exception of those already falling under other EU acts such as MiFID II or PSD2. The Regulation defines three key categories:
– Asset-Referenced Tokens (ART);
– Electronic Money Tokens (EMT);
– Utility tokens providing access to digital services or platforms.
Which companies are required to obtain a MiCA licence?
A CASP licence is required for all organizations providing services related to crypto-assets—custody, exchange, order execution, platform management, and other operations. To obtain a licence, a legal entity must be registered in one of the EU member states, provide the required minimum capital (from €50,000 to €150,000 depending on the type of services), implement AML/KYC procedures, and establish an internal control system.
What are the transitional deadlines for MiCA implementation in EU countries?
MiCA will come into full effect on December 30, 2024. However, certain provisions related to stablecoin issuers began to apply as of July 2024. Most EU member states have set a transitional period until July 2026, during which already registered VASP companies must obtain a CASP licence or cease their activities.
What advantages does a MiCA licence provide for international companies?
A MiCA licence grants access to the EU single market and allows companies to provide services across all EU countries without the need for separate licences in each jurisdiction (the “passporting” mechanism). Holding such a licence increases investor confidence, facilitates cooperation with banks and payment systems, and enables crypto projects to grow legally in compliance with European standards of protection and transparency.
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