MiCA: New Standard for Obtaining a Crypto License in the EU

MiCA Regulation (Markets in Crypto-Assets), coming into effect in December 2024, represents a significant step towards regulating the cryptocurrency sector within the European Union. This legislation fundamentally changes the approach to licensing cryptocurrency companies, providing clearer requirements for obtaining operational licenses within the EU.

MiCA introduces mandatory licensing for all crypto services operating in the EU. This covers a wide range of activities, from cryptocurrency exchanges and trading platforms to custodial services and issuers of cryptocurrency tokens. To obtain a license, a company must undergo a certification process, which includes stringent requirements for capital, security, operational transparency, and consumer protection.

Three classes of crypto services

MiCA classifies cryptocurrency services into three categories, each with its own capital requirements and scope of activity:

• Class 1 – services for managing crypto portfolios, consulting, and executing orders on crypto assets. For these companies, the minimum capital is €50,000.

• Class 2 – crypto asset exchange and custody for third parties. The minimum capital requirement for these companies is €100,000.

• Class 3 – crypto-to-fiat exchanges and management of trading platforms. These companies must have a minimum capital of €150,000, reflecting the higher level of responsibility in regulating such operations.

To obtain a crypto license, companies must submit an application to the national authority responsible for regulating financial markets in their country. The application must include detailed information about the business model, adherence to security standards, as well as plans for anti-money laundering (AML) and combating the financing of terrorism (CFT). Additionally, the company must demonstrate the ability to maintain business stability amidst changes in the crypto asset market.

How to Obtain a License Under New Rules?

With MiCA coming into effect, the cryptocurrency market in Europe will become more structured and predictable, opening new opportunities for startups and major players. However, the strict capital requirements and regulatory compliance may be challenging for medium and small companies. Therefore, we recommend consulting specialists at IT-OFFSHORE. Our team is ready to offer comprehensive support and develop tailored solutions to ensure full compliance with MiCA requirements.