EU's MiCA Regulation Brings New Licensing Regime for Crypto-Asset Service Providers

The European Union's MiCA regulation has brought about significant changes for crypto-asset service providers (CASPs). Since July 1, 2026, CASP license is the standard route for providing regulated crypto services across the EU. This license is granted by a national regulator and allows passporting rights across the bloc.

MiCA groups crypto-asset activities into ten defined services under Article 3(1)(16). Companies that provide one or more of these activities may require CASP authorisation when their services fall within MiCA's scope. The prudential requirements for a CASP license are based on the services provided, with three tiers of minimum capital: €50,000, €125,000, and €150,000.

Companies already providing crypto-asset services under national law before December 30, 2024, can continue operating under transitional arrangements. However, new market entrants need to obtain the appropriate authorisation before providing services that fall within MiCA's CASP regime. The process of obtaining a CASP license involves establishing an EU structure, determining which services to provide, and preparing the application required under Article 62.

The cost of CASP authorisation has several components, including prudential requirements, national application fees, legal and advisory costs, and ongoing compliance expenses. Authorised CASPs must maintain governance, prudential safeguards, AML controls, and ICT arrangements applicable to their activities.