Founders, lawyers and investors are still trying to make sense of MiCA. With our guest experts demystifying MiCA for you, get the upper hand and understand what the regulation is really about.
What is MiCA, and what is it about?That time is over. MiCA replaces those national patchworks with one standard framework:
The Crypto Assets Service Provider regime (CASP); Unified rules for white paper notification and token issuance, and classification for crypto.Who needs a MiCA license?
Any company providing crypto-asset services within the EU must hold a CASP license.
What does obtaining a CASP license actually require?
The requirements are substantive.
Applicants must demonstrate minimum capital ranging from 50,000 to 150,000 EUR depending on the services offered, and management must pass fit-and-proper checks. Firms must implement rigid AML/KYC frameworks aligned with the applicable Directives, maintain IT security systems that meet regulatory standards (DORA alignment), segregate client funds, and put in place governance structures with clearly defined accountability and more. In contrast, when mere templates of these documents for VASPs were often deemed sufficient by entrepreneurs, the regulators will make sure one actually has everything implemented.
Ongoing obligations include regulatory reporting, public disclosure requirements, and conduct-of-business rules designed to protect retail investors.
The application goes to the national competent authority of the EU member state where the applicant is incorporated. Each member state designates its own authority: in Lithuania it is the Bank of Lithuania, in Austria it is the FMA, in Germany it is BaFin, and so on.
Once authorized in one member state, the CASP license can be passported across the entire EU, allowing the firm to service clients in all 27 countries without separate licenses in each.
The transitional arrangements
After that date, firms without a valid CASP license under MiCA must cease providing crypto-asset services in the EU.
This deadline is not flexible. It is embedded in the EU Regulation itself and cannot be extended by national authorities or national legislation. The clock is running.
Why does this matter beyond compliance?
A MiCA license is a commercial asset as much as a regulatory requirement. Companies that secure authorization gain access to the entire EU single market through passporting, with a level of regulatory standing that institutional counterparties, banking partners, and investors increasingly require.
Companies whose business model requires them to but do not obtain authorization by July 2026 will be locked out of the EU market.
The MiCA regulation has also introduced a framework that other jurisdictions are watching closely. It is the most comprehensive crypto-specific regulatory regime enacted by any major jurisdiction to date. Its structure, particularly the passporting mechanism and tiered capital requirements, is being studied by regulators in the UK, Singapore, and the UAE as a potential model. Montenegro, which is in continental Europe, but not part of the European Union and hence not subject to MiCA, used the framework as a basis for its domestic regulation.
For operators with EU exposure, the practical question is not whether to pursue MiCA compliance, but where to apply, how to prepare, and whether the July 2026 deadline leaves enough runway.
And MiCA is moving fast. As we’ll see below with three hot cases, it’s a live topic with multiple implications.
MICA License in Austria: KuCoin Prohibited from Taking New Business
The prohibition blocks new customer acquisition and new transactions, effectively freezing the company’s ability to grow in Europe as a whole. It is one of the first high-profile enforcement actions taken by an EU regulator under MiCA, and it targets a globally recognized exchange brand.
CASP License in Lithuania: Four Successful Registrations
This article was produced in partnership with LegalBison. The content is for informational purposes only and does not constitute legal advice.
