MiCA Authorisation

MiCA (Regulation 2023/1114) establishes distinct authorisation regimes for different types of crypto-asset activities. The authorisation requirements represent the EU's comprehensive approach to bringing the crypto-asset industry within a regulated framework, balancing innovation with investor protection and financial stability.

For issuers of asset-referenced tokens (ARTs), crypto-assets that purport to maintain a stable value by referencing multiple currencies, commodities, or other crypto-assets, MiCA requires authorisation from the competent authority before offering the tokens to the public or seeking admission to trading. The application must include a detailed white paper, a description of the governance arrangements, the reserve of assets mechanism, the custody arrangements, and the complaint handling procedures. Issuers must maintain own funds equal to the higher of EUR 350,000 or 2% of the average amount of the reserve assets.

For issuers of e-money tokens (EMTs), crypto-assets that purport to maintain a stable value by referencing a single official currency, the issuer must be authorised as a credit institution or as an electronic money institution. E-money tokens are treated as electronic money under existing EU law, with additional MiCA-specific requirements.

For crypto-asset service providers (CASPs), authorisation requires demonstrating compliance with organisational, prudential, and conduct-of-business requirements. The application must include a programme of operations, evidence of good repute and competence of management, proof of adequate own funds, and descriptions of internal control mechanisms, IT systems, and security arrangements. Competent authorities have three months to assess whether the application is complete, and then a further three months to grant or refuse authorisation. The transitional provisions allowed existing CASPs operating under national law to continue operating temporarily, but all entities must obtain MiCA authorisation by the applicable deadline.