MiCA License, Europe
Markets in Crypto-Assets

Introduction

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The Markets in Crypto-Assets Regulation (MiCA) is transforming the European cryptocurrency landscape by introducing a single licensing regime for all crypto-asset service providers (CASPs). From 2024, any business offering crypto-related services in the European Economic Area (EEA) must obtain a MiCA licence to operate legally. This applies to crypto exchanges, wallet providers, stablecoin issuers, and investment platforms, ensuring regulatory compliance, financial stability, and investor protection.

With MiCA passporting rights, a business licensed in one EU member state can operate across all 27 EU countries without additional authorisations. This creates a seamless pathway for crypto businesses to expand across Europe while benefiting from a harmonised regulatory framework.

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MiCA Licence Overview

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A MiCA licence is a legal requirement for any company offering crypto-to-fiat and crypto-to-crypto exchange services, custody solutions, brokerage, token issuance, or stablecoin-related services in the European Union. The regulation eliminates national licensing variations, ensuring a single, transparent compliance standard across all EU countries.

 

Key MiCA compliance obligations include:

• AML and CTF Compliance: Strict KYC, transaction monitoring, and reporting requirements aligned with EU directives.

• Stablecoin Issuer Requirements: Full asset reserves backing, regulatory approval, and strict redemption policies.

• Market Integrity Measures: Prevention of market abuse, insider trading, and price manipulation.

• Investor Protection Standards: Clear risk disclosures, operational transparency, and security protocols.

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Without a MiCA licence, businesses will not be allowed to offer services in the EU, market digital assets, or secure banking partnerships.

 

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Where to Obtain a MiCA Licence in Europe

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Although MiCA applies across the EU, companies must obtain their licence in a specific member state. The choice of jurisdiction can impact licensing speed, regulatory complexity, and operational costs.

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• France: Regulated by the AMF (Autorité des Marchés Financiers), France has a strong AML framework and rigorous compliance standards.

• Germany: BaFin (Federal Financial Supervisory Authority) requires a full crypto custody licence, imposing some of the strictest financial requirements in the EU.

• Lithuania: The Bank of Lithuania offers a fast and cost-effective licensing process, making it a popular choice for crypto startups.

• Estonia: Previously crypto-friendly, Estonia now imposes strict local presence and compliance requirements for MiCA licence applicants.

• Malta: The MFSA (Malta Financial Services Authority) provides a detailed regulatory framework, attracting businesses looking for long-term regulatory certainty.

 

With MiCA passporting, once a company is licensed in one of these jurisdictions, it can operate throughout the EU without additional approvals.

 

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Step-by-Step Process to Obtain a MiCA Licence

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The MiCA licensing process involves several regulatory and compliance steps, which can take six months to a year, depending on the jurisdiction.

 

Step 1: Choose a Jurisdiction
Selecting the right EU country based on business needs, regulatory complexity, and approval timelines.

 

Step 2: Prepare Application Documents
Submission of a detailed business plan, AML/CTF framework, corporate governance policies, and financial disclosures.

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Step 3: Fit and Proper Test
Regulatory background checks for company directors, compliance officers, and key personnel to ensure financial competence and integrity.

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Step 4: Regulatory Review and Due Diligence
National regulators evaluate financial stability, AML measures, and risk management policies. Some jurisdictions require on-site inspections.

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Step 5: Approval and Licence Issuance
Once approved, the MiCA licence grants full EU passporting rights, allowing the company to operate across all 27 EU member states.

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Step 6: Ongoing Compliance and Reporting
Regular AML audits, financial reporting, and transaction monitoring to ensure continued adherence to MiCA regulations.

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How Buckingham Capital Consulting Can Help

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At Buckingham Capital Consulting, we specialise in MiCA licensing, crypto compliance, and regulatory strategy. With over 15 years of experience, we assist businesses in obtaining their MiCA licence efficiently, ensuring full compliance with EU regulatory requirements.

 

Our services include:

• MiCA Licence Application: End-to-end support for jurisdiction selection, application preparation, and regulatory submissions.

• AML and Compliance Program Development: Tailored KYC, transaction monitoring, and risk assessment frameworks.

• Regulatory Interview and Audit Preparation: Expert guidance for regulatory due diligence and fit and proper tests.

• Ongoing Compliance Support: Ensuring businesses maintain full MiCA compliance post-licensing.