MiCA Regulation 

Obtaining crypto licenses, white label consulting,
ICO/STO, supporting NFT marketplaces, drafting policies
for crypto projects, DAOs, and gamify projects

The European Union started to embrace the reality of a situation with digital assets. Cryptocurrencies became too big to be ignored, which is why the MiCA regulation was created. This is a standard that regulates the norms and conditions of businesses that work with different types of digital coins. This initiative establishes clear rules for crypto exchange accreditation, custodians, and token issuers, filling gaps in existing financial regulations. MiCA license has become a new standard for legal businesses. By obtaining it, companies can show their clients and investors that it is safe to work with the platform as it is reliable enough and fully transparent. 

Main Types of Digital Assets

By learning about current MiCA crypto regulation norms, you can see that cryptocurrencies are classified into several different types: 

  • asset-referenced tokens. This is a form of cryptocurrency that is not a digital token, but aims to keep a steady value by being tied to another value or right or a combination of them, which can include one or more fiat currencies;
  • e-money tokens. They are a form of digital asset that serves as a claim against the issuer and is designed for transactions. They are tied to a fiat currency and are created to ensure a steady value. These tokens are regulated within the current EU framework for electronic money and must comply with particular demands outlined in MICA;
  • other crypto assets. Networks of modern cryptocurrencies support additional tokens that can have a specific purpose, such as NFT.

Each type of token has its licensing requirements for digital assets in terms of issuance, disclosure, and authorization of activities.

Things To Do For a Listing of Cryptoassets

Issuers of MiCA crypto assets in the European Union must comply with certain rules:

  • White paper — issuers must provide a road map for all investors to see what type of project they are dealing with. It should describe the MiCA cryptocurrency asset, the project, terms of issue, and associated risks before offering assets to real people.
  • Principles of ethical behavior — issuers are required to be transparent with all clients and provide only the true information about the results of testings, the number of coins that are about to be provided as an airdrop, the launch pool, and listing dates;
  • EU MiCA legal entity — to run a business that involves operations with different types of cryptocurrencies, the issuer must complete a full registration cycle in the crypto market regulatory framework of European countries.

Keep in mind that creating and issuing digital assets like stablecoins requires regulatory approval. According to the MiCA regulation, in the EEA, only electronic money institutions and credit institutions can undertake certain stablecoin activities. Specifically, only EMIs and banks can:

  • Issue or mint stablecoins;
  • Communicate offers to encourage the purchase of stablecoins;
  • Ask trading platforms to list their stablecoins.

Meeting all these regulatory requirements is essential for making your business successful.

Tools For Cryptocurrency Operations

In the modern cryptocurrency market, it is not enough to create a digital asset, because it is also important to provide clients with some handy tools or services that would help them store and use all the digital coins they are holding. According to the MiCA regulation, several specific types of services crypto-asset service providers may offer:

  • Custody and administration of crypto-assets on behalf of third parties. This service involves the safekeeping of client’s digital assets, ensuring their security and accessibility;

  • Operation of a trading platform for crypto-assets. Includes managing platforms where users can buy, sell, and trade various cryptocurrencies;

  • Exchange of crypto-assets for fiat currency or other crypto-assets. Covers services that facilitate the conversion of digital assets to traditional money or other cryptocurrencies; 

  • Execution of orders for crypto-assets on behalf of third parties. This involves carrying out buy and sell orders as instructed by clients;

  • Placing of crypto-assets. This refers to the distribution or marketing of new digital assets to potential investors;

  • Reception and transmission of orders on behalf of third parties. This involves receiving and forwarding clients’ orders to buy or sell crypto-assets;

  • Providing advice on crypto-assets. This includes offering expert guidance on investing in or managing cryptocurrencies.

This is a minimum you should know about the way modern crypto services are structured, as it is important for meeting all the necessary regulatory requirements.

Regulatory Process for Obtaining a License

To obtain a MiCA regulation crypto license, several regulatory requirements must be met:

  • Preparation of internal documentation: program of operations, risk management, business continuity policies, customer complaint handling procedures, etc;
  • Providing general information about the owners and management of the company;
  • Appointment of qualified key management personnel;
  • Use of adequate resources and secure IT systems;
  • Proper storage of clients’ funds in banks;
  • Compliance with the requirements for the outsourcing of operational functions;
  • Special requirements for the storage and administration of crypto-assets.

The MiCA crypto licensing process typically involves 4 main phases:

  • Due diligence. Analysis of the business model, review of available documentation, preparation of a list of necessary documents, and selection of contractors.
  • Preparatory stage. Development of a business plan and financial forecasts, preparation of an application and mandatory policies, collection of documents from owners and management, and search for office space.
  • Application submission. Applying and accompanying documents to the regulatory body, answering questions, and providing additional information upon request.
  • Operational preparation. Establishment of partnership relations with EU banks, implementation of compliance and risk management systems, and final procedures before obtaining a permit.

This is what the basic procedure looks like, but keep in mind — each country will have its own procedure and deadlines.

Legal Assistance From SBSB Fintech Lawyers

The experienced team of SBSB Fintech Lawyers specializes in supporting the digital asset licensing procedure. The firm offers comprehensive customer support at every stage:

  • Choosing the optimal jurisdiction and business structure;
  • Tax consulting and planning to minimize liabilities;
  • Preparation of all necessary internal documents;
  • Assistance in hiring personnel: screening of candidates, development of personnel policies;
  • Assistance in forming partnerships with IT providers, KYC, and payment institutions;
  • Legal support of private placements and tokenized projects also includes obtaining necessary blockchain technology permits.

With a deep understanding of the specifics of the crypto market and digital currency industry oversight, the SBSB Fintech Lawyers team helps clients avoid legal obstacles.

The introduction of MiCA European will significantly change the rules of the game in the European crypto market, providing comprehensive blockchain industry oversight. Companies need to ensure regulatory compliance for crypto operations if they want to make sure all the operations are going to go smoothly. Engaging an experienced law firm such as SBSB Fintech Lawyers will provide professional support and facilitate all phases of licensing. Be ready for changes and act ahead of the curve.


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Ivan Nevzorov

Head of Fintech Department

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