The Markets in Crypto-Assets Regulation (MiCA) is the European Union’s comprehensive legal framework that regulates cryptocurrencies, tokens, and related services. Unlike fragmented national rules, MiCA provides a single licensing regime across all EU member states, ensuring that once a company is licensed in one EU country, it can operate throughout the Union.

For entrepreneurs and crypto companies, obtaining a MiCA license is the gateway to building trust with investors, offering compliant services, and scaling across the European market.

Key benefits of the MiCA license include:

• Passporting rights across all EU states

• Regulatory clarity and investor protection

• Stronger reputation with banks, partners, and clients

• Legal certainty for stablecoins and tokenized assets

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The regulation applies to both issuers of crypto-assets and crypto-asset service providers (CASPs). You may need a MiCA license if your business falls into one of these categories:

• Crypto exchanges – facilitating trading between tokens and fiat currencies

• Wallet providers – offering custody services for digital assets

• Token issuers – creating utility tokens, asset-referenced tokens, or e-money tokens

• Advisors and brokers – providing investment advice on crypto-assets

• Stablecoin operators – managing tokens pegged to fiat or commodities

Even if you already operate under national licenses (like Estonia’s crypto license or Lithuania’s VASP license), MiCA will become the standard framework after full implementation in 2024–2025.

To qualify, applicants must meet strict organizational, financial, and compliance requirements.

1. Legal entity

The applicant must be a registered company within the EU. Most choose countries like Estonia, Lithuania, Cyprus, or Malta for their business-friendly environments.

2. Share capital requirements

Depending on the activity, minimum capital is required. For example:

• Custody and exchange services: €125,000–€150,000

• Other CASP activities: around €50,000

3. Governance structure

• Fit and proper management team

• Transparent ownership structure

• Anti-Money Laundering (AML) compliance officers

4. Operational and risk management

• Internal control systems

• IT security protocols

• Complaint handling and conflict resolution procedures

5. AML & KYC compliance

Full adherence to EU AMLD5/AMLD6 regulations, including customer due diligence, transaction monitoring, and reporting obligations.

The process can be divided into six main steps:

Step 1 – Preparation (1–2 months)

• Assess whether your business model falls under MiCA

• Choose the most suitable EU jurisdiction

• Prepare financial plan and compliance policies

Step 2 – Incorporation of the company (1–2 weeks)

• Register your company in the chosen EU country

• Appoint directors and compliance officers

Step 3 – Drafting internal policies (1–2 months)

• AML/KYC policy

• Risk management policy

• IT and cybersecurity policy

Step 4 – Application submission (2–3 months)

• Submit application to the national competent authority (NCA)

• Provide full documentation package: business plan, governance, capital proof, IT systems, etc.

Step 5 – Review and feedback (3–6 months)

• The regulator reviews the application

• Requests for clarifications or additional documents are common

• Applicant must respond promptly

Step 6 – License approval and passporting (up to 12 months)

• Once approved, you receive the MiCA license

• The license is valid across all EU states via passporting

StageEstimated DurationPreparation & strategy1–2 monthsCompany incorporation1–2 weeksDrafting policies1–2 monthsApplication submission2–3 monthsRegulatory review3–6 monthsFinal approval9–12 months total

In total, the MiCA license process usually takes 9 to 12 months, depending on the jurisdiction and regulator’s efficiency.

The cost of obtaining the MiCA license varies depending on the jurisdiction, company setup, and legal support.

Typical expenses include:

• Company registration: €3,000–€6,000

• Legal & consulting fees: €20,000–€60,000

• Share capital (locked in): €50,000–€150,000

• Annual compliance & audit costs: €10,000–€30,000

While the upfront investment is significant, it opens the door to 28 EU member states under one regulatory umbrella.

Entrepreneurs often underestimate the complexity of the process. The most common challenges include:

• Preparing AML/KYC frameworks that meet strict EU standards

• Demonstrating adequate financial resources and liquidity

• Building IT infrastructure with high security standards

• Communicating effectively with regulators

Proper legal and compliance support is essential to avoid delays or rejections.

Although MiCA harmonizes rules across the EU, national regulators still process applications. Some jurisdictions are faster, more experienced, or more cost-efficient.

Popular jurisdictions include:

1. Estonia – fast company setup, digital infrastructure

2. Lithuania – well-known for crypto regulation, fintech hub

3. Malta – established financial center for blockchain projects

4. Cyprus – tax-friendly, large financial services sector

5. Germany & France – stricter, but good for big players

• Start early – the sooner you prepare policies, the better

• Engage compliance professionals – regulators expect detailed documentation

• Choose the right jurisdiction – balancing cost, reputation, and regulator efficiency is key

• Plan your finances – capital requirements are strict, and regulators check liquidity

• Think long-term – MiCA is not only about licensing, but about building sustainable operations in the EU

The MiCA license is a cornerstone for companies aiming to operate in the European crypto market. While the process is complex and time-consuming, it provides legal certainty, EU-wide access, and business credibility.

By understanding the requirements, planning the steps, and engaging with professionals, entrepreneurs can successfully secure their license and position themselves for growth in the regulated crypto space.

👉 Learn more here: mica license.