MiCA Compliance Framework
European regulatory requirements for crypto-asset service providers under Markets in Crypto-Assets regulation
Table of Contents
MiCA Overview
The Markets in Crypto-Assets (MiCA) Regulation is the EU's comprehensive regulatory framework for crypto-assets, establishing harmonized rules across all 27 member states.
Regulatory Scope
MiCA covers three main categories of crypto-assets:
Scope & Application
Who Must Comply?
Crypto-Asset Service Providers (CASPs)
- • Exchanges and trading platforms
- • Custody and wallet providers
- • Portfolio management services
- • Crypto-asset advisors
- • Placement and reception of orders
Issuers of Crypto-Assets
- • Asset-referenced token issuers
- • E-money token issuers
- • Utility token issuers (under certain conditions)
Extraterritorial Application
MiCA applies to any entity offering services to EU residents, regardless of where the entity is established. Non-EU firms must either obtain EU authorization or partner with authorized entities.
CASP Requirements
1. Authorization & Licensing
Authorization from national competent authority required
Minimum capital requirements (€50,000 - €150,000 depending on services)
Professional indemnity insurance or comparable guarantee
EU passport for cross-border services
2. Operational Requirements
Robust governance arrangements and internal control mechanisms
Conflicts of interest policies and procedures
Complaints handling procedures
Business continuity and disaster recovery plans
3. Client Protection
Segregation of client crypto-assets from own holdings
Clear disclosure requirements and client communications
Best execution obligations for trades
Suitability and appropriateness assessments
4. Market Integrity
Market abuse prevention (insider trading, market manipulation)
Transaction reporting to competent authorities
Record-keeping requirements (5 years minimum)
AML/CFT compliance (5th AMLD, 6th AMLD, TFR)
Token Issuer Obligations
Asset-Referenced Tokens (ARTs)
Issuance Requirements:
- • White paper publication and notification
- • Reserve asset management and custody
- • Own funds requirements
- • Recovery and redemption plan
If "Significant" (€5M+ holders or €1B+ value):
- • Supervised by EBA (not national authority)
- • Enhanced capital and liquidity requirements
- • Interoperability obligations
E-Money Tokens (EMTs)
Issuance Requirements:
- • Must be credit institution or e-money institution
- • 1:1 backing with fiat currency
- • Redemption rights at par value
- • White paper and notification
Restrictions:
- • No interest on e-money tokens
- • Reserve segregation requirements
- • EBA supervision if significant
Implementation Timeline
June 30, 2024
MiCA fully applicable - All provisions in force
December 30, 2024
Stablecoin provisions applicable - ARTs and EMTs must comply
Ongoing (18 months post-application)
Existing CASPs transition period to obtain authorization
2025-2026
EBA/ESMA technical standards and guidelines finalized
How Veria Simplifies MiCA Compliance
Automated Market Abuse Monitoring
Real-time transaction monitoring for insider trading patterns and market manipulation indicators. Automated suspicious activity reporting.
Client Onboarding & KYC
Streamlined identity verification, sanctions screening, and suitability assessments compliant with MiCA and 5AMLD/6AMLD requirements.
Transaction Reporting
Automated generation and submission of regulatory reports to national competent authorities in required formats.
Reserve Monitoring (ARTs/EMTs)
Real-time verification of reserve asset backing with blockchain attestation for stablecoin issuers.
Record Keeping
Immutable audit trails and 5-year retention of all client transactions, communications, and compliance documentation.
Regulatory Intelligence
Stay updated on EBA/ESMA technical standards, national implementation variations, and evolving MiCA guidance.
Ready to Navigate MiCA Compliance?
Schedule a consultation with our EU regulatory experts to develop your MiCA compliance roadmap.