MiCA Licence
EU/EEA CASP Authorisation
A MiCA licence — formally CASP authorisation under Regulation (EU) 2023/1114 — is what lets a crypto business serve clients anywhere in the EU and EEA. One MiCA licence passports to 30+ markets. Below: what it costs, how long it takes and which jurisdiction fits your model.
What is a MiCA licence?
A MiCA licence is the EU-wide authorisation a crypto asset service provider needs to serve clients in the EU and EEA. In the text of the regulation it is called CASP authorisation: one national competent authority grants it, and it is then valid across the whole bloc.
- MiCA (Markets in Crypto-Assets Regulation, EU 2023/1114) came into full effect for CASPs in December 2024.
- Any business providing crypto asset services to EU/EEA clients may need a MiCA licence — exchange, custody, wallet, brokerage, transfer, placement or advice.
- A single MiCA licence can be passported to all 27 EU member states and the three EEA members through a notification procedure.
- Service scope determines own funds requirements: classes 1, 2 and 3 sit at 50 000, 125 000 and 150 000 EUR respectively.
- Each jurisdiction issues the licence through its own national competent authority (NCA) — MFSA in Malta, BaFin in Germany, KNF in Poland and so on.
- National transition periods for firms that held a legacy VASP registration have now largely closed; new entrants apply under MiCA directly.
MiCA licence cost and timeline by country
MiCA licence cost and timeline differ by country even though the rulebook does not: service fees, supervision fees, local substance and banking readiness all move the total. Side-by-side comparison across MiCA-implementing EU/EEA countries.
Who needs a MiCA licence
You need a MiCA licence if you provide any crypto asset service to clients located in the EU or EEA, regardless of where your company is incorporated. The list below separates the models the route fits well from the ones where it is the wrong instrument.
Best for
- Crypto exchanges and brokers targeting EU/EEA retail or institutional clients.
- Custody and wallet providers that need a single licence for cross-border EU operation.
- Businesses already operating in one EU member state that want to expand EU-wide via passporting.
- Businesses that need a high-reputation, fully regulated EU licence to satisfy institutional counterparties.
Not for
- Businesses whose primary market is outside the EU/EEA — consider VASP or DASP instead.
- Businesses with very limited capital who cannot meet share capital requirements.
- Businesses with unclear securities or DeFi activity — MiCA scope needs prior legal assessment.
- Projects with tight timelines — all MiCA routes start from 6 months.
Other routes to consider
If a MiCA licence is not the right fit, these routes may be more appropriate for your business model.
Non-EU markets: Dubai, BVI, Cayman Islands, Seychelles and others with full VASP authorisation.
Turkey CASP authorisation — note: Turkey is not EU/EEA and passporting does not apply.
Turkish CASP does not grant EU/EEA passporting rights.
El Salvador and Kazakhstan digital asset service provider authorisation for non-EU market access.
If your model does not clearly fit any single route, a feasibility review identifies the correct path.
Frequently asked questions about MiCA
MiCA came into full effect for crypto asset service providers (CASPs) in December 2024. Issuers of asset-referenced tokens and e-money tokens had an earlier deadline of June 2024.
Yes. Once authorised in any EU member state, the holder of a MiCA licence can passport its services to all other EU member states and EEA members (Norway, Iceland, Liechtenstein) through a notification procedure, without a separate licence per country.
Budget for three separate items: professional and application fees, own funds of 50 000 to 150 000 EUR depending on service class, and annual supervision fees. Lithuania and Poland tend to have lower service fees, but the cheapest service fee is not always the lowest total cost once substance and banking preparation are counted.
All MiCA jurisdictions currently show timelines from 6 months. This covers pre-assessment, company setup, documentation, submission and the regulator review phase. The NCA has 40 working days to assess a complete file, so file quality is what actually drives the timeline.
Own funds depend on service class: 50 000 EUR for class 1 (execution, placement, transfer, advice), 125 000 EUR for class 2 (custody, exchange against fiat or other crypto assets) and 150 000 EUR for class 3 (operating a trading platform). The comparison above uses the class 1 base of from 50 000 EUR.
A programme of operations, a three-year business plan with financial projections, governance and internal control documentation, an AML/KYC framework, ICT and cybersecurity policies, a client asset safeguarding policy, a complaints procedure, plus fit-and-proper evidence for directors and qualifying shareholders.
Not directly. A MiCA licence is issued to a legal entity established in an EU or EEA member state, with real local substance — a registered office, resident management and effective decision-making in that country. A non-EU group normally applies through an EU subsidiary.
Banking is one of the main post-authorisation challenges. Most MiCA country routes are rated medium to high for banking difficulty, with some premium jurisdictions still requiring detailed flow-of-funds, safeguarding and compliance evidence.
This information is for general guidance only and does not constitute legal or regulatory advice. Requirements may change. Always validate with a qualified adviser.