MiCA Adaptation
of Your Crypto Company
As the regulatory landscape for crypto companies continues to evolve, the Markets in Crypto-Assets Regulation (MiCA) is set to introduce significant changes across the European Union. Whether you’re a Crypto-Asset Service Provider (CASP) aiming to comply with the latest rules or preparing to transition your business under the new standards, this page provides essential insights into how Legalaes can help.
At Legalaes, we guide businesses like yours through the MiCA adaptation process, ensuring compliance with minimal operational disruption. Our tailored solutions are designed to help you meet new regulatory requirements while maintaining the integrity of your operations.
With MiCA set to reshape the EU’s crypto landscape, early adaptation is critical for staying competitive. By partnering with Legalaes, you’ll benefit from expert guidance that simplifies the compliance process and ensures your business is MiCA-ready well before the regulatory deadlines. Our services are customized to fit your unique needs, ensuring a smooth transition into the new regulatory framework.
Additionally, it is suggested that companies must begin their MiCA adaptation well before the December 2024 deadline, to ensure they are fully compliant and ready to submit their CASP licensing applications ahead of time.
Key Insights into the MiCA Regulation
The Markets in Crypto-Assets (MiCA) Regulation is a comprehensive legislative framework introduced by the European Union aimed at regulating the growing cryptocurrency market. MiCA addresses key challenges in this rapidly evolving industry, such as investor protection, financial stability, and promoting innovation within the EU’s digital economy.
MiCA regulates several important aspects of crypto-assets. It focuses on the issuance of crypto-assets, including utility tokens, e-money tokens, and asset-referenced tokens. Moreover, it establishes clear licensing and regulatory requirements for crypto-asset service providers (CASPs), ensuring these businesses meet specific standards for operation. Another essential component of the MiCA framework is ensuring consumer protection, primarily by enforcing transparency and anti-money laundering (AML) measures. Lastly, MiCA enhances market integrity by mitigating risks related to fraud, market manipulation, and other illegal activities.
This regulation serves as the first unified approach in Europe, providing consistency across jurisdictions, which were previously fragmented. It replaces the various legal frameworks that varied from country to country, simplifying compliance and fostering a stable environment for both businesses and consumers.
The regulation is supervised by key authorities, including:
- European Banking Authority (EBA)
- European Securities and Markets Authority (ESMA)
- National Competent Authorities (NCAs)
For a more detailed breakdown of the Markets in Crypto-Assets Regulation, including its impact on businesses and the latest updates, you can explore our comprehensive blog post about MiCA regulations . Our article provides in-depth insights into all key changes under MiCA and how they will affect the crypto landscape across the European Union.
How Legalaes Can Assist You with MiCA Adaptation
Tailored Regulatory Strategy
We analyze your business in detail to pinpoint the exact MiCA-regulated services you need. From there, we create a customized compliance roadmap that outlines the capital, documentation, and operational safeguards needed to meet MiCA requirements.
Documentation Support
Our team assists with the preparation or adaptation of essential documents such as policies on AML/CFT, ICT security, and client safeguarding, ensuring everything complies with MiCA standards and is tailored to your business model.
Ongoing Regulatory Coordination
We maintain continuous communication with regulatory bodies to make sure your application is handled smoothly. We also manage any additional regulatory requirements that may arise during the process.
Expert Legal Consultation
With our deep experience in fintech and crypto, we provide guidance on navigating the regulatory landscape under MiCA. This includes ensuring compliance with AML/CFT obligations, the Travel Rule, and audit preparation.
Post-Licensing Support
Our services don’t stop with obtaining your license. We offer ongoing support to help you adjust to future regulatory changes and keep your business compliant, ensuring your competitive edge in the market.
Legal services for MiCA adaptation of your crypto company in EU
Basic Package
12,000 EUR
- Review of business structure, ownership, and key personnel.
- Review of required internal documents, including AML, governance, and security policies, in accordance with MiCA regulations.
- Evaluation of methods to safeguard customer funds in line with MiCA’s prudential requirements.
- Full management of the CASP license application process, including form submissions and communications with the regulatory authorities.
- Ongoing support throughout the application process to address any feedback or additional documentation requests.
- Post-license compliance guidance to ensure continued adherence to MiCA rules and regulations.
- Legal Support throughout the entire project
Additional services on request
- Development of all required internal documents in accordance to MiCA Regulations and your business model
- Registration of Increased Share Capital (notarization and registration)
- Assistance in opening bank account in Credit Institution (including current account and safeguard)
- Preparation of professional business plan similar as for EMI / Specialized banking license
- Legal opinion prepared by lawyer
- HR services for recruitment required local staff
Eriks Fijalovs
Head of Blockchain and Crypto
Overview of coming changes for crypto companies in EU with MiCa
One of the most critical aspects of MiCA is the requirement for crypto companies to obtain proper licensing to continue their operations legally within the EU. This regulatory framework imposes clear rules on licensing requirements, minimum capital, and consumer protection obligations. Legal entities will need to ensure their compliance across several areas, including:
- Licensing and Authorization: All CASPs must apply for authorization within their respective member states to continue operating. The application process includes submitting a business plan, demonstrating internal controls for anti-money laundering (AML) and cybersecurity, and meeting financial stability criteria.
- Capital Requirements: Depending on the type of crypto services offered (such as trading, custody, or issuing tokens), companies must meet minimum capital thresholds to ensure financial stability and reduce operational risks. These requirements vary from €50,000 to €150,000, depending on the class of services offered, such as crypto processing, exchange, or trading platforms.
- Consumer Protection and Transparency: A key element of MiCA is to enforce greater transparency with clients, requiring CASPs to provide clear, non-misleading information. White papers for issued tokens must contain detailed disclosures, including risks and the technological aspects of the tokens.
- Safeguarding Client Funds: Companies offering crypto custody services must ensure the safe custody of client funds, using third-party custodians where required and reporting regularly on the status of these assets.
- AML and Market Integrity: To combat financial crimes, MiCA places strong emphasis on implementing risk-based AML procedures. Companies are required to monitor transactions for suspicious activity, report any market abuse, and ensure compliance with anti-market manipulation laws.
- E-Money and Asset-Referenced Tokens: For businesses issuing asset-referenced tokens (ARTs) or e-money tokens, MiCA introduces stricter requirements, including continuous reporting on reserves and ensuring the stability of issued tokens.
- Local Office and Staffing Requirements: MiCA emphasizes the need for local presence within the EU; however, each country retains the authority to determine how these requirements are implemented at the national level. In some jurisdictions, CASPs may be required to establish a physical office and hire additional staff, particularly for compliance and risk management roles. In other countries, the requirements may be more flexible. The amount of staff required, and whether local employees are needed, may vary from country to country, with a strong preference for professionals experienced in compliance within the EU regulatory framework.
These regulatory changes are designed to foster trust in the crypto markets, reduce fragmentation across member states, and align the EU with global financial standards. Companies operating within the EU are strongly encouraged to begin the adaptation process ahead of the regulatory deadline to ensure full compliance and seamless operations under the new framework. For additional explanation of coming changes you can find in our blog post – MiCA overview page.
Detailed explanation of main requirements coming with MiCAR
Capital Increase and Prudential Safeguards
According to MiCA’s new requirements (Regulation (EU) 2023/1114), crypto companies offering , for example, Class 3 services (exchange, trading, custody) must maintain a minimum capital of €150,000. We assist with preparing and submitting all necessary documents to facilitate the capital increase, share capital account opening, managing the entire process through banks, notary offices, and government authorities.
Internal Control Policies and Documentation Support
Previously, VASPs needed to meet local AML requirements, primarily focused on anti-money laundering policies. With MiCA, these requirements have expanded to include cybersecurity, governance, and operational safeguards. Legalaes assists by reviewing existing policies, identifying necessary updates, and preparing all required documentation to harmonize with new rules, ensuring a smooth transition for your business.
Business Plan and Operational Overview Submission
Based on MiCA regulations, companies now need to submit a comprehensive business plan to the authorities as part of their licensing process. This includes details about the company’s operations, services provided, target markets, and future growth expectations. Unlike before, where such detailed plans were not required, MiCA enforces this step to ensure a transparent and well-structured operation. Legalaes offers assistance in preparing this business plan, ensuring that it meets all regulatory standards.
Management Approval and Qualifications Under MiCA
In many jurisdictions, new regulatory requirements now mandate the approval of senior management for crypto-asset service providers (CASPs). This includes assessing the experience, qualifications, and reputation of the candidate, ensuring they meet local regulatory standards. Under MiCA, these evaluations will ensure compliance with anti-money laundering and governance standards. Legalaes can assist in conducting initial assessments of potential managers to ensure they align with local and MiCA standards
Local Presence and Staffing under MiCA
In the past, VASPs did not have stringent requirements related to having a local office or sufficient local employees. However, under MiCA, jurisdictions may now require companies to demonstrate a stronger local presence, which could include having a physical office and enough local staff to fulfill regulatory obligations effectively. The number of required employees may vary depending on the jurisdiction and will often be evaluated on a case-by-case basis according to the company’s business plan and the services provided.
At Legalaes, we assist in recruiting qualified local candidates, particularly those with expertise in AML/CFT compliance, and can offer guidance on setting up a physical office in the jurisdiction where your company is licensed. Additionally, we provide comprehensive support to help you navigate these new requirements based on the specific jurisdiction where you operate.
Types of new categories for Crypto Asset Service Provider (CASP) in EU
| License type | Description of license |
|---|---|
Class 1 – basic license | This class authorizes businesses to provide:
Share capital requirement: 50,000 EUR. |
Class 2 – crypto exchange & custody | This class authorizes businesses to provide:
Share capital requirement: 125,000 EUR. |
Class 3 – crypto platform | This class authorizes businesses to provide:
Share capital requirement: 150,000 EUR. |
Roadmap of MiCA Adaptation for Your Crypto Company
Get in touch with us today for additional information and professional guidance for MiCA regulations and adaptation in Europe.
Eriks Fijalovs
Head of Blockchain and Crypto
Initial Assessment and Strategy Development
Our team will begin by conducting a detailed analysis of your business, identifying key areas that require alignment with the MiCA regulation. This involves reviewing your business model, governance framework, capital structure, and internal policies, ensuring they meet the updated MiCA standards for crypto-asset services.
Document Preparation and Submission
We will assist in preparing and organizing all necessary documentation, including the business plan, governance arrangements, and compliance policies, as required under MiCA. All documents will be submitted in a timely manner to the relevant authorities to ensure a smooth transition.
Regulatory Application and Approval
Our team manages the full application process for MiCA compliance. We take care of completing the required forms, handling submissions to regulatory bodies, and ensuring that all regulatory feedback is incorporated efficiently to expedite approval.
Post-Licensing Support
After obtaining the MiCA license, our work doesn’t end. We provide ongoing support to help you navigate any future regulatory updates, ensuring that your company remains fully compliant with the evolving regulatory landscape. This includes monitoring operations, updating policies, and assisting with any new obligations that arise.
FAQ for MiCA adaption for CASP
What companies fall under the requirement for adaptation?
All Virtual Asset Service Providers (VASPs) that offer services related to virtual assets such as exchanges, custody, and other crypto-related operations must apply for a new type of license that aligns with MiCA regulations in the European Union.
When to apply for registration?
Exact time lines differs in every jurisdiction. Usually, registration for the new licenses starts from 30 December 2024. Applications for crypto license submitted after this date must already comply with the new “post MiCA” requirements.
What documents are required to adapt to MiCA regulations?
In accordance with Regulation (EU) 2023/1114 (MiCA), companies offering services related to virtual assets under the new regulations must prepare a series of internal documents such as AML/CFT policies, governance frameworks, and operational procedures.
For a complete list of required documents, please visit our blog post with MiCA overview.
Is a business plan required for MiCA?
Yes, MiCA regulations require companies to provide a Business Plan (Programme of Operations) when applying for a new CASP license. The plan must detail the company’s activities, services, and future market expectations, ensuring compliance with the new MiCA standards.
How fast can a new license be approved?
The review and approval times may vary across jurisdictions. Based on previous experiences, we estimate that regulatory bodies will take around 3 to 5 months to review applications and provide feedback, although this may differ depending on the jurisdiction and completeness of your application.
What will happen if a company doesn’t adapt to MiCA regulations?
If a company fails to meet MiCA requirements and cannot transition to a CASP (Crypto Asset Service Provider) status, its ability to operate within the European Union will be at risk. The company may need to seek a license outside the EU to continue its operations or face the possibility of being restricted from offering services, along with potential penalties from local regulatory authorities.
Will my company need to hire new staff to meet MiCA requirements?
MiCA requires specific roles to be filled by individuals with relevant experience, particularly in compliance and AML/CFT. Depending on the size and services offered by your company, you may need to hire additional personnel, particularly those with local expertise in jurisdictions where your business operates.
Can existing licenses be automatically transitioned to a CASP license under MiCA?
No, all Virtual Asset Service Providers (VASPs) must go through the process of applying for a new CASP license under MiCA regulations. Existing licenses are not automatically converted.
How will MiCA impact my company’s existing AML policies?
MiCA includes stricter AML/CFT requirements that may necessitate updates to your current policies. These must be aligned with the new regulatory framework, including regular reporting and enhanced due diligence for certain client profiles.
Is MiCA the ultimate rule for all European countries?
MiCA establishes a unified regulatory framework for crypto-asset services across the European Union. However, while it sets the baseline requirements, individual EU member states may introduce their own specific provisions or adjustments within their jurisdiction. These national variations must still meet or exceed the minimum standards set by MiCA to ensure harmonized compliance across the EU.
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