What is the MiCA passport and how is it used from Spain?

MiCA’s entry into force has completely transformed the crypto regulatory landscape in Europe. And with it comes one of the most powerful tools for any company in the sector: the MiCA passport.

If you have a crypto startup in Spain and aspire to operate in other European Union countries, this mechanism can be your best ally. But it can also become a maze if you do not know where to start.

In this article we explain what the MiCA passport is exactly, how it works, what you need to obtain it, and how to apply it from Spain. All in clear language, with practical examples and without unnecessary technical jargon.

What exactly is the MiCA passport?

The MiCA passport is a mutual recognition mechanism among European Union Member States. It allows a company authorised as a crypto-asset service provider (CASP) in one country to provide those same services across the rest of the EU without having to apply for a new licence in each jurisdiction.

In other words: if your company obtains authorisation in Spain, you can expand to France, Germany, Italy, or any other Member State by notifying your intention. You do not need to repeat the entire regulatory process from scratch.

This system mirrors the success of the European passport in traditional financial services. Now, crypto companies can also benefit from that regulatory mobility.

The MiCA regulatory framework was approved by the European Parliament in 2023 and began to be applied progressively from 2024. This regulation establishes a common framework for the entire European Union.

The advantage is enormous. Instead of facing 27 different regulatory frameworks, you comply with just one and gain access to the European single market.

Why does it matter to a Spanish crypto company?

Spain is consolidating as an important crypto hub in southern Europe. But the real business potential lies in being able to operate beyond our borders.

This is where the MiCA passport comes in. It allows you to scale your operation without multiplying regulatory costs or facing legal barriers in each country.

Imagine your exchange platform wants to attract users in Portugal, the Netherlands, and Poland. Without the passport, you would have to apply for local authorisations in each of those countries. With the passport, you notify your intention and that is it.

In addition, the MiCA passport strengthens your project’s credibility. Being authorised under this European framework sends a clear message: your company meets demanding standards for customer protection, anti-money laundering, and corporate governance.

In a sector where trust remains a challenge, having a MiCA authorisation can make the difference between closing an investment round or losing an opportunity.

The European Commission has highlighted that this regulatory framework seeks to foster innovation while protecting consumers and financial stability at the same time.

How the passport works step by step

The passporting process is not automatic, but it is not as complicated as it seems. It is structured in several well-defined phases.

Phase 1: Obtain authorisation as a CASP

First, you need to be authorised as a crypto-asset service provider in your home country. In Spain, that authorisation is granted by the Bank of Spain or the National Securities Market Commission (CNMV), depending on the type of service.

Without this initial authorisation, there is no passporting possible. It is the mandatory starting point.

Phase 2: Notify your intention to expand

Once authorised, you must notify your national competent authority (in Spain, the body that granted your licence) of your intention to provide services in another Member State.

This notification includes information about the services you intend to offer and the country or countries where you want to operate.

Phase 3: Transmission to the authority in the destination country

Your national authority transmits that notification to the competent authority in the destination country. This process must be completed within a maximum timeframe set by MiCA.

The authority in the destination country cannot reject your request if you meet the requirements. It may only request additional information or clarifications.

Phase 4: Start of operations

Once the notification has been completed, you may begin operating in the destination country. You do not need to wait for any additional formal approval.

That said, you remain under the supervision of your national authority as regards regulatory compliance. The destination country may supervise specific aspects related to the protection of local clients.

Key requirements to obtain the passport

The MiCA passport is not a document you apply for separately. It is a direct consequence of being authorised as a CASP. However, to get there you must meet a series of fundamental requirements.

Registration and initial authorisation

First, you must be registered as a CASP in Spain. This involves submitting a complete application to the Bank of Spain or the CNMV with detailed information about your company, services, governance structure, and internal controls. The initial authorisation is the most demanding step. This is where most projects encounter obstacles if they have not prepared the documentation properly.

Capital and own-funds requirements

MiCA establishes minimum capital requirements for CASPs. These vary depending on the type of service you provide.

For example, if you operate an exchange, the capital requirements are higher than if you only offer custody services. You must demonstrate that you have sufficient resources to cover operational risks and ensure business continuity.

The European Banking Authority (EBA) has developed specific technical standards on these capital and governance requirements.

Governance and compliance policies

You need to have robust policies in place for anti-money laundering (AML), know your customer (KYC), data protection, and cybersecurity.

You must also have an appropriate governance structure: a competent board of directors, segregation of duties, and management of conflicts of interest.

In practice, this means clearly documenting internal processes and demonstrating that your team has sufficient experience.

Audits and reporting

CASP companies must undergo periodic audits and submit regular reports to supervisory authorities.

These controls ensure that you continue to meet MiCA standards over time.

If your crypto project needs regulatory guidance, at IN DIEM we can support you step by step in preparing all of this documentation.

Which authority manages it and how to apply

In Spain, the competent authority depends on the type of service you offer.

Bank of Spain

The Bank of Spain supervises services related to e-money tokens and exchange services between crypto-assets and fiat currency.

If your company operates an exchange that allows buying and selling cryptocurrencies with euros, your supervisor will likely be the Bank of Spain.

The Bank of Spain has published specific guidance on the authorisation process and the requirements that crypto service providers must meet.

CNMV

The National Securities Market Commission supervises services related to asset-referenced tokens and crypto-asset investment services.

If your platform offers investment products or crypto portfolio management, the CNMV will be your reference authority.

Application process

The application for authorisation as a CASP is submitted to the competent authority with all required documentation. The process includes:

• Official forms.
• Full corporate information.
• Business plan.
• Compliance policies.
• Information on directors and shareholders.
• Operational risk analysis.

The decision timeframe may vary, but in general the authorities have several months to assess the application. During that time, they may request clarifications or additional information.

Once the authorisation is approved, you can activate the MiCA passport by notifying your intention to operate in other countries.

Common mistakes and how to avoid them

Many crypto projects make avoidable mistakes during the authorisation process. Here are the most frequent ones.

Incomplete or generic documentation

One of the most common problems is submitting insufficient or overly generic documentation. Authorities need specific information about your business model, internal controls, and team.

It is not enough to copy standard templates. Each company must adapt its policies to its operational reality.

Underestimating capital requirements

Some projects start without being clear on how much capital they need to comply with MiCA. This can bring the process to a complete halt if you discover halfway through that you do not meet the required minimum.

Before applying for authorisation, make sure you know exactly how much own capital you need and how to evidence it.

Not relying on compliance experts

Trying to manage the process without specialised advice is another common mistake. Crypto regulation is complex and constantly evolving.

Working with a legal team with MiCA expertise can save you months of work and avoid unnecessary rejections. At IN DIEM we collaborate with Cryptoveritas 360 to offer a complete perspective: legal and technical.

Ignoring local differences

Although the MiCA passport allows you to operate across the EU, each country may have local nuances regarding taxation, advertising, or consumer protection.

Do not assume everything is identical in all Member States. Research the specificities of the country where you want to expand.

Real benefits for Spanish startups

The MiCA passport offers concrete advantages that go beyond regulatory theory.

Immediate access to the European market

The first benefit is obvious: you gain access to more than 440 million potential consumers without additional regulatory barriers. For a startup, this can mean the difference between a local project and a business with continental reach.

Reduced regulatory costs

Obtaining licences in multiple countries is expensive. Each authorisation involves fees, lawyers, consultants, and time.

With the MiCA passport, you reduce those costs drastically. You only pay for the initial authorisation and the expansion notifications.

Greater appeal to investors

Investors look for scalable projects. A business model that can only operate in Spain has a clear growth ceiling.

If you demonstrate that you can expand across Europe through the MiCA passport, your project becomes far more attractive to venture capital or business angels.

Compete on a level playing field

Before MiCA, large international platforms had an advantage because they could absorb the costs of multiple licences.

Now, a well-prepared Spanish startup can compete on equal regulatory terms with those giants.

Institutional credibility

Being authorised under MiCA gives you a seal of regulatory quality. Banks, commercial partners, and institutional clients place great value on this status.

It is a sign that your company meets the highest European standards.

Read our articles on crypto compliance at IN DIEM to better understand how to take advantage of these benefits.

Final reflection: the passport as a growth lever

The MiCA passport is not just a regulatory formality. It is a strategic lever to scale your crypto business in Europe.

If you approach it professionally, with the right support and a clear strategy, it can open doors that previously seemed out of reach.

The companies that make the best use of this mechanism will be those that understand that compliance is not an obstacle, but a competitive advantage.

In an increasingly mature market, the projects that demonstrate regulatory seriousness will be the ones that capture the best opportunities for growth, funding, and strategic partnerships.

The future of the crypto industry in Europe is regulated. And the MiCA passport is your ticket into that future.

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How can IN DIEM Abogados help in this process?

Mastering the theory is only the beginning. Implementing it correctly requires legal and technical experts. We invite you to learn about our Legal Services for Adaptation to the MiCA Regulation.

IN DIEM Abogados advises and represents companies before the CNMV, drafts the necessary legal documentation, and coordinates the technical review with Cryptoveritas 360 to ensure comprehensive compliance.

Our firm offers comprehensive advice in all areas related to crypto-assets and blockchain, including:

• Law and Cryptocurrencies: we advise on Bitcoin, altcoins, ICOs, NFTs, and blockchain-based projects, providing legal certainty from inception through to the operation of any crypto-asset.
• Crypto Tax and Taxation: we provide expert guidance on the taxation of cryptocurrency investments, buy/sell transactions, staking, DeFi, and airdrops, ensuring compliance with applicable regulations.
• MiCA Registration and Passport: we guide cryptocurrency exchange and custody platforms through registration and regulatory compliance, ensuring safe and lawful operations.
• Adaptation to the MiCA Regulation: we help crypto companies comply with the new European regulation, covering everything from obtaining licences to implementing anti-money laundering (AML) policies, consumer protection, and compliance auditing.

In an increasingly complex and competitive regulatory environment, having a firm that understands both technology and the law is key to minimising risks and seizing opportunities. In Diem Abogados, in collaboration with its technology partner Cryptoveritas 360, does not only advise: it supports, implements, and ensures that your crypto company complies with regulations, integrates secure technological solutions, and thrives in the digital ecosystem.

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