Who Must Obtain a License Under MiCA?

MiCA requires licensing for any legal person providing crypto-asset services professionally within the EU. Entities falling within the definition of a CASP under Article 62 must obtain a MiCA license to operate. This includes businesses engaged in:

• Custody and administration of crypto-assets;
• Operating trading platforms;
• Exchanging crypto-assets for funds or other crypto-assets;
• Executing client orders;
• Placing crypto-assets;
• Transmitting or receiving client orders;
• Providing portfolio or investment advice;
• Managing portfolios in crypto-assets;
• Providing crypto-asset transfer services.

Operating any of these services without a valid MiCA license constitutes a regulatory breach and invites sanctions.

Core Compliance Requirements for MiCA Licensing

Achieving MiCA compliance involves aligning your operational and governance frameworks with regulatory expectations. 

Main prerequisites include:

• A registered office and principal place of business in an EU Member State;
• At least one EU-resident director;
• A robust, transparent governance structure with qualified leadership;
• Internal control mechanisms covering AML, risk management, and business continuity;
• Minimum capital or insurance-based safeguards as outlined in Article 67.

MiCA compliance must be embedded into daily operations and leadership oversight.

Required Documentation for MiCA License Application

To secure a MiCA license, crypto firms must submit a comprehensive application package to their National Competent Authority (NCA). 

Under Article 63, the required documentation includes:

• Legal name, address, LEI, and corporate structure;
• Articles of Association and legal form;
• Programme of operations describing services and marketing plans;
• Proof of prudential safeguards (e.g., capital, insurance);
• Governance and organisational chart;
• Evidence of competence and reputation of management;
• Shareholder information for qualifying holdings;
• AML/CFT framework and internal controls;
• Technical documentation (ICT systems, security protocols);
• Client asset segregation procedures;
• Complaint handling procedures.

Service-specific policies (e.g., custody policies, execution procedures) are also required depending on the CASP’s profile.

Timeline and Supervision of MiCA License Review

Each Member State designates an NCA to assess and approve license applications. The process follows a structured timetable:

1. Acknowledgment: NCA confirms receipt within 5 working days.
2. Completeness Check: Within 25 days, NCA assesses if the application is complete. If not, the applicant is asked to provide missing information within a set deadline.
3. Assessment: Once complete, the NCA has 40 days to evaluate whether the applicant meets MiCA compliance standards.
4. Decision: Approval or refusal must be reasoned and issued within 5 working days of decision.

If additional information is requested during the assessment, the review period pauses for up to 20 working days. Overall, the license process typically spans no more than 3 months.

The European Securities and Markets Authority (ESMA) maintains a central registry of licensed CASPs and helps coordinate consistent supervisory practices across the EU.

Post-License Compliance Obligations

Receiving a MiCA license is not the end of compliance. CASPs must continuously uphold MiCA standards through:

• Transparent and fair client communications;
• Clear disclosure of crypto-asset risks;
• Ongoing AML compliance and internal controls;
• Security and ICT compliance in line with EU standards;
• Disclosure of consensus mechanism impacts on climate/environment;
• Maintenance of adequate capital and risk buffers;
• Regular reporting to NCAs;
• Prompt updates on any material operational or structural changes.

MiCA compliance is also intertwined with other frameworks such as DORA (digital operational resilience) and GDPR. CASPs must adopt an integrated compliance strategy.

Grounds for License Revocation or Sanctions

Under Article 64, a CASP license may be revoked due to:

• Inactivity (12 months unused or 9 months without service);
• Voluntary surrender;
• Misleading or false information during application;
• Loss of qualifying licenses (e.g., e-money);
• Serious breaches of MiCA, including AML violations or non-cooperation with NCAs.

Revocation can follow supervisory investigations and is coordinated with other regulators, especially for CASPs operating cross-border.

Firms must ensure strong governance and risk frameworks to prevent compliance breakdowns that could jeopardize licensing.

As conclusion

Licensing under MiCA is a competitive advantage that signals trust, transparency, and alignment with the EU’s emerging crypto legal landscape.

Crypto businesses aiming for long-term growth in Europe must prioritise MiCA compliance from the outset. A successful license application demands strong documentation and a business model that integrates AML safeguards, transparent disclosures, and resilient ICT systems.

Failure to comply can result in license withdrawal, public sanctions, or exclusion from the EU market.

Crypto firms should work closely with legal and regulatory experts to navigate MiCA’s licensing journey. Manimama Law Firm provides full-cycle support, ensuring your business is licensed and ready for the future operation.

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Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.