MiCA-Licensing

1. Was ist eine MiCA-Lizenz und wer benötigt sie zwingend?

Answer: Under the European MiCA Regulation (Markets in Crypto-Assets) a CASP (Crypto-Asset Service Provider) refers to any legal person providing crypto-asset services to clients across the EU and EEA on a professional basis.

Licensing as a CASP is mandatory for:

• Crypto-custodians and wallet providers (Custody and Administration).

• Operators of crypto trading platforms and exchanges (Trading Platforms).

• Providers exchanging crypto-assets for fiat currency or other crypto-assets (Exchanges / Broker).

• Providers of portfolio management, crypto-asset investment advice, as well as the execution and reception/transmission of orders.

Following the expiry of all transitional periods, offering these services to EU clients without a valid MiCA authorization is strictly prohibited.

2. What advantage does the "EU passporting" of a MiCA license offer?
Answer: Passporting represents the greatest strategic advantage of the MiCA framework. A crypto company only needs to undergo the lengthy authorization process once with a national financial supervisory authority (e.g., BaFin in Germany, the FMA in Austria, or the MFSA in Malta).

Following the granting of the CASP license and a straightforward notification procedure, the provider can seamlessly offer its crypto-asset services in all 27 EU Member States as well as the EEA States. The requirement for individual, separate national licenses in each EU country is therefore a thing of the past.

3. What are the regulatory capital requirements for a CASP?
Answer: MiCA divides services into three risk classes, which establish the minimum regulatory capital requirements:

• Class 1 (e.g., advisory, reception and transmission of orders): At least 50.000 €.

• Class 2 (e.g., custody, exchange services, placement): At least 125.000 €.

• Class 3 (operation of a trading platform / exchange): At least 150.000 €.

Alternatively, CASPs must permanently maintain own funds of at least 25% of the preceding year's fixed overheads hold – whichever amount is higher.

4. What requirements does MiCA impose on local governance and substance?
Answer: MiCA puts an end to letterbox entities (Letterbox Entities) within the crypto sector. In order to obtain a CASP license, supervisory authorities require genuine operational and personnel substance in the EU Member State where the authorization is sought:

• Registered office in the EU: At least one executive director (Director) must have their physical and tax residence in the Member State of authorization.

• Fit & Proper Check: Shareholders and members holding a qualifying holding (often assessed from 10% upward, with ultimate beneficial owners typically identified at 25% or more) are thoroughly vetted by the authority regarding their reliability, repute, and professional competence (fit and proper assessment).

• Key functions: Local officers responsible for compliance, anti-money laundering (MLRO), risk management, and IT security must be demonstrably established.

5. How do MiCA, DORA, and the new EU Travel Rule interact with each other?
Answer: MiCA does not operate in isolation, but forms a triangle with two other crucial EU regulations:

• DORA (The Digital Operational Resilience Act): CASPs are legally classified as financial entities and must comply with the strict DORA requirements regarding IT security, cyber resilience, and incident reporting.

• Anti-Money Laundering Regulation / Travel Rule (EU 2023/1113): For every crypto-asset transfer, identity data of the originator and the beneficiary must be transmitted and retained—regardless of the transaction amount. Anonymous crypto transactions are excluded from the regulated sector.

6. How does the law firm assist crypto businesses with the MiCA licensing procedure?
Answer: The process leading up to authorization demands highly complex legal, financial, and technical preparation. Our advisory approach encompasses:

1. Jurisdiction and structural analysis: Selection of the optimal EU Member State of authorization and structuring of the corporate setup.

2. Dossier preparation: Drafting of the MiCA application package (business plan, governance arrangements, IT security architecture, and asset segregation frameworks).

3. Compliance manuals: Preparation of all AML/KYC process policies and client agreements in full alignment with DORA and ESMA guidelines.

4. Liaison and representation before supervisory authorities: Assuming full communication and negotiations with the competent financial supervisory authorities up to the grant of the CASP license decision.