MiCA Compliance for Crypto Exchanges and Token Issuers

The Markets in Crypto-Assets Regulation (MiCA) is the EU's comprehensive framework for crypto-asset markets. It introduces licensing requirements, operational standards, and consumer protections that affect every player in the crypto ecosystem.

Who Needs to Comply?

Token Issuers

If you issue crypto-assets in the EU, MiCA applies:

• Asset-Referenced Tokens (ARTs) — tokens that reference any other value or right, or a combination (e.g. a basket of currencies, commodities, or crypto-assets), other than a single official currency. Requires authorisation, reserve management, and a compliant white paper.
• E-Money Tokens (EMTs) — stablecoins pegged to a single fiat currency. Must be issued by a credit institution or e-money institution.
• Other crypto-assets — utility tokens and similar. Requires a white paper and notification to the competent authority.

Crypto-Asset Service Providers (CASPs)

If you provide crypto-asset services in the EU, you need a CASP licence:

• Custody and administration — holding crypto-assets on behalf of clients
• Trading platforms — operating exchanges or matching engines
• Exchange services — crypto-to-fiat or crypto-to-crypto
• Transfer services — facilitating crypto-asset transfers
• Advisory services — investment advice related to crypto-assets
• Portfolio management — discretionary management of crypto portfolios

Key Requirements

For Issuers

• White Paper (Article 6) — detailed document covering the issuer, the crypto-asset, the offering, risks, and the underlying technology. Must be fair, clear, and not misleading.
• Reserve Assets (Article 36) — ARTs must maintain reserves equal to the value of tokens in circulation. Reserves must be segregated and held by credit institutions.
• Redemption Rights (Article 39) — token holders must be able to redeem at any time at the current value.
• Governance (Article 34) — fit and proper management, conflict of interest policies, internal controls.

For CASPs

• Authorisation (Article 59) — formal application to the national competent authority with fitness assessment
• Organisational Requirements (Article 68) — governance, risk management, AML/CFT, outsourcing
• Client Asset Safeguarding (Article 70) — segregation of client assets, liability coverage
• Market Abuse (Title VI, Articles 86-92) — prohibition of insider dealing (Article 89) and market manipulation (Article 91)

Assessing Your MiCA Readiness

MiCA authorisation is granted by your national competent authority, not by any assessor — so the goal is readiness: each issuer and/or CASP obligation relevant to your scope substantiated by current evidence. Netallion maintains obligation libraries for both issuers and CASPs (45 obligations across both) and scopes an engagement to the obligations that apply to your activity:

1. Work against the issuer or CASP obligations relevant to your scope
2. Assemble your white paper, governance arrangements, prudential safeguards, complaints handling, and custody controls
3. Have each obligation assessed for evidence sufficiency, not mere presence
4. Surface explicit blockers — for example, a drafted white paper where the required competent-authority notification is unevidenced