Compliance with the MiCA Regulation for Crypto Companies

Legal Services for Compliance with the MiCA Regulation

The MiCA Regulation has transformed the legal framework for crypto-assets in the European Union. Companies that issue tokens, provide services related to crypto-assets, or develop Web3 projects targeting the European market can no longer operate based on fragmented criteria or divergent national interpretations.

MiCA establishes a common framework for the issuance, offering, and trading of crypto-assets, as well as for the provision of related services in the European Union. In Spain, the CNMV identifies MiCA as the new benchmark regulation for cryptoasset markets, with its main provisions set to take effect on December 30, 2024.

At IN DIEM, we assist crypto companies, token issuers, CASPs, Web3 startups, and international projects in complying with the MiCA Regulation, incorporating legal, regulatory, operational, tax, and technological analysis.

Adaptation is not merely a matter of amending legal documents. It requires reviewing the business model, correctly classifying services and cryptoassets, identifying obligations, developing internal policies, adapting procedures, and maintaining ongoing regulatory compliance.

This service is part of our MiCA crypto regulation practice.

Introduction to the MiCA Regulation

MiCA is part of the European digital finance strategy and aims to provide legal certainty to a market that has operated under inconsistent regulatory standards for years.

Its main objectives are to protect users and investors, preserve market integrity, strengthen financial stability, and enable crypto innovation to flourish within a common European framework.

The Regulation governs, among other matters, the issuance of cryptoassets, public offerings, admission to trading, and the professional provision of services related to cryptoassets. It also establishes obligations regarding disclosure, corporate governance, customer protection, conflicts of interest, internal controls, and supervision.

Therefore, MiCA should not be viewed as merely a financial regulation, but rather as a regulatory standard for the entire European crypto ecosystem.

Challenges of the MiCA Regulation for Crypto Companies

Compliance with MiCA poses significant challenges for any company in the sector.

The first step is to determine whether the activity is subject to the Regulation and which specific regulatory obligations apply. Many projects are unaware that their business model may fall under regulated services or constitute an offer of cryptoassets to the public.

The second challenge is related to documentation. MiCA requires clear evidence: internal policies, procedures, contracts, white papers, risk controls, AML documentation, and reporting capabilities.

The third challenge is operational. The company must demonstrate that what it has reported to authorities, banks, and investors matches its actual operations.

Finally, there is a challenge related to continuity. Compliance does not end with authorization, the issuance of the token, or the publication of the white paper. MiCA requires maintaining ongoing controls and regulatory consistency throughout the project’s entire lifecycle.

Which companies must comply with MiCA?

All companies that deal in cryptoassets or provide related services in Europe must assess their compliance with MiCA.

This includes exchanges, custodians, trading platforms, wallet providers, intermediaries, cryptoasset advisors, token issuers, tokenization projects, Web3 startups, and foreign companies that target users or investors in the European Union.

Companies that—while not considered “crypto-native”—incorporate digital payments, tokens, wallets, digital rewards, or blockchain-based financing models should also review their situation.

MiCA is not applied based on a business label, but rather on actual activity. That is why the first step must be a MiCA assessment to determine whether the project is subject to the Regulation, whether it requires a license, or whether it can operate under an exemption.

Key Areas of Regulatory Adaptation

The MiCA adaptation requires a coordinated approach across several areas.

The classification of cryptoassets, the nature of the services provided, the corporate structure, contractual documentation, corporate governance, client protection, AML/KYC policies, risk management, operational security, reporting, and relations with regulators should be reviewed.

The banking and tax implications must also be analyzed. A project with weak regulatory compliance may face difficulties opening accounts, maintaining payment providers, or justifying cash flows.

Effective adaptation is not about meeting each requirement in isolation, but rather about building a coherent, robust, and defensible regulatory framework.

Authorizations, CASP licenses, and regulatory reserves

One of the key aspects of MiCA is the authorization of crypto-asset service providers.

A CASP license may be required when a company provides services such as custody, trading, management of trading platforms, order execution, receipt and transmission of orders, placement, or advice regarding cryptoassets.

Before initiating any application, you should analyze the actual scope of the service, the company’s structure, the target customers, and the jurisdiction in which it operates.

Apply for a CASP license without a prior diagnosis may result in delays, regulatory requirements, or a license that is poorly aligned with the business model.