EU MiCA Regulations Bring Structured Supervision to Digital-Asset Sector

The European Union's digital-asset sector is entering a period of structured supervision, thanks to the implementation of MiCA (Market in Crypto Assets) regulations. To qualify as a CASP (Crypto-Asset Service Provider) and operate within the EU framework, applicants must meet specific legal and compliance requirements.

Under MiCA, certain services related to crypto-assets are regulated as crypto-asset services and may require authorization as a CASP. This means that applicants cannot rely on national regulations or a soft supervisory approach anymore. To gain authorization, an applicant must demonstrate a ready operational landscape and compliance, in addition to formal registration.

The process for CASP-authorization involves regulatory approval before market entry, evaluation of control and governance mechanisms, verification of financial and operational substance, and ongoing supervisory obligations post-authorization. This is not just a filing exercise but a substantive regulatory process.