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One License, 27 European Countries, Unlimited Potential.
The Markets in Crypto-Assets (MiCA) Regulation
What is MiCA?
MiCA is a groundbreaking legislative initiative by the European Union aimed at regulating the cryptocurrency market across all member states. MiCA is designed to establish a clear, unified legal framework to enhance transparency, protect users, and ensure market stability.
MiCA sets clear, unified rules for the cryptocurrency market across the European Union. It aims to reduce risks, protect users and investors, and strengthen financial stability. MiCA regulates token issuance, stablecoins, and crypto service providers. It also closes the legal gaps that created unfair conditions in the market, giving companies clear guidelines for expansion and offering users safer, more transparent platforms.
The Purpose of MiCA
A Crypto Asset Service Provider (CASP) license obtained under MiCA in any EU country allows you to operate across all 27 EU Member States without needing separate national authorizations
MiCA sets clear rules for market participants, including token issuers, crypto service providers, and stablecoin operators.
Transparency & Security:
Unlock EU-Wide Operations
MiCA offers a single licensing framework, making it easier to launch and scale crypto platforms across the entire European Union without separate approvals in each country.
Compliance with MiCA shows clients, investors, and partners that your platform meets strict security, transparency, and operational standards.
Boost Credibility and User Trust
Simplify Regulatory Compliance
With unified EU rules, you avoid navigating complex national regulations, saving time and reducing legal risks when managing crypto assets or operating trading platforms.
Early adoption of MiCA regulations positions your business ahead of non-compliant competitors and opens doors to strategic partnerships and institutional clients.
Gain a Competitive Edge
Support Sustainable Growth
MiCA lays the foundation for long-term business development by promoting financial stability and reducing the risk of sudden regulatory crackdowns.
Stronger protections under MiCA make your platform more attractive to users seeking safe, reliable services for trading and managing digital assets.
Enhance Investor, Client Protection
Investor Protection:
Unified Legal Framework:
Key Goals of MiCA
Why MiCA Matters for Your Crypto Business
The regulation aims to reduce risks and protect investors by enforcing stringent measures against market manipulation and ensuring the safety of crypto transactions.
By eliminating the legal uncertainty that has plagued the crypto space, MiCA creates a more predictable environment for businesses and users alike.
€125,000
Class 2
€150,000
€50,000
Class 3*
Class 1
Share capital requirements
Execution of orders on behalf of the clients
Placing of crypto-assets
Providing transfer service for crypto-assets on behalf of the clients
Processing client orders for the reception and transfer of crypto-assets
Providing advice on crypto-assets
Provide portfolio management on crypto-assets
Provide custody and administration of crypto-asset on behalf of the clients
Exchange crypto-asset for funds
Exchange crypto-asset for another crypto-asset
Operation of a trading platform for crypto-asset
Execution of orders on behalf of the clients
Placing of crypto-assets
Providing transfer service for crypto-assets on behalf of the clients
Processing client orders for the reception and transfer of crypto-assets
Providing advice on crypto-assets
Provide portfolio management on crypto-assets
Provide custody and administration of crypto-asset on behalf of the clients
Exchange crypto-asset for funds
Exchange crypto-asset for another crypto-asset
Operation of a trading platform for crypto-asset
Allowed Activities and Description of Classes
* Class 3 CASP license is designed for large-scale providers, such as stablecoin issuers and major exchanges, offering a comprehensive range of services for institutional accounts.
Two Categories of Stablecoins
Capital Requirements for Issuers
Understanding Stablecoins Under MiCA
Asset-Referenced Tokens (ARTs).
Backed by a combination of assets like currencies, commodities, or other crypto-assets.
Backed by a combination of assets like currencies, commodities, or other crypto-assets.
Issuers must maintain a minimum own funds reserve of €350,000.
This additional capital ensures greater financial resilience due to the complexity and risk of managing multiple asset types.
This additional capital ensures greater financial resilience due to the complexity and risk of managing multiple asset types.
E-Money Tokens (EMTs).
Backed by a single fiat currency, maintaining a stable 1:1 value.
Backed by a single fiat currency, maintaining a stable 1:1 value.
MiCA defines two main types of crypto-assets designed for price stability:
Asset-Referenced Tokens (ARTs):
E-Money Tokens (EMTs):
Subject to standard capital requirements set for crypto-asset service providers (CASPs)
No separate additional reserve beyond the general framework.
No separate additional reserve beyond the general framework.
Key Differences: ARTs vs. EMTs
Feature
Backing
Capital Requirement
Regulatory Focus
€350,000 additional minimum own funds
Basket of assets (currencies, commodities, crypto-assets)
Asset-Referenced Tokens (ARTs):
Reserve diversification and financial stability
Stablecoins/ EMTs
Single fiat currency (e.g., EUR, USD)
Covered by general CASP capital requirements
Stability linked directly to one currency
Understanding the Travel Rule in Crypto
Gather and verify identifying information about both the sender and the recipient before processing transactions.
Data Collection:
Thresholds:
Typically applies to transactions above €1,000 (but some jurisdictions are lowering this threshold or applying it to all transfers).
Protect customer data through secure transmission channels and strict data privacy measures.
Secure Handling:
Data Transmission:
Share the required information securely with the counterparty service provider during the transaction process.
What is the Travel Rule?
The Travel Rule is an international regulatory requirement that mandates crypto service providers (such as exchanges, custodians, and wallet providers) to collect and share information about the sender and receiver of crypto transactions. Originally applied to banks for wire transfers, the Travel Rule now extends to crypto to help prevent money laundering and terrorism financing.
Importance of the Travel Rule
Regulatory Compliance:
Meeting Travel Rule obligations is critical to operating legally under MiCA and FATF guidelines.
Meeting Travel Rule obligations is critical to operating legally under MiCA and FATF guidelines.
Strengthening Trust:
Implementing the Travel Rule builds credibility with regulators, financial institutions, and customers.
Implementing the Travel Rule builds credibility with regulators, financial institutions, and customers.
Reducing Risk:
Helps identify suspicious activity early, protecting your platform from regulatory penalties and reputational damage.
Helps identify suspicious activity early, protecting your platform from regulatory penalties and reputational damage.
Obtaining a CASP license under MiCA takes approximately 6 to 12 months, so early preparation is key to securing your place in the regulated market.
Find out which license best suits your business model and explore opportunities to combine it with other financial licenses to create a comprehensive crypto-fiat payment ecosystem under a multi-license framework.
Find out which license best suits your business model and explore opportunities to combine it with other financial licenses to create a comprehensive crypto-fiat payment ecosystem under a multi-license framework.
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CASP Poland
VASP Bulgaria
CASP Czech
CASP Malta
Offshore
MSB Canada
VASP Georgia
VASP Salvador
SRO Switzerland
Other licensing and solution options