MiCA Regulation (EU) 2023/1114 — In force since December 2024
VASP→CASP Transition Deadline: 1 July 2026
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MiCA CASP Authorization Requirements — Complete Guide 2026

Everything you need to meet NCA authorization requirements under MiCA — from minimum capital and governance to AML/KYC procedures, DORA compliance, and the application document checklist.

Capital from €50,000
3-Month NCA Review
EU-Wide Passporting
Updated March 2026

What MiCA Art. 62 Requires

MiCA Article 62 defines the authorization requirements that any legal entity must satisfy before a National Competent Authority (NCA) can grant CASP status. These requirements apply across all EU member states and cannot be substituted by national law.

Authorization is mandatory for any firm wishing to provide crypto-asset services to clients in the EU on a professional basis. Meeting the requirements set out in MiCA Art. 62–76 is a strict precondition: no NCA may grant CASP authorization to an entity that does not satisfy every applicable criterion. The requirements span capital adequacy, corporate governance, AML/KYC infrastructure, information technology resilience, and procedural compliance.

VASP Transition Deadline

If you currently hold an EU VASP registration, you must obtain full MiCA CASP authorization by 1 July 2026. Existing VASPs operating under grandfathering provisions have until that date to submit a complete MiCA application to their NCA.

Capital Requirements (MiCA Art. 67)

MiCA defines three capital classes based on the services a CASP intends to provide. The minimum initial capital must be maintained at all times. Alternatively, professional indemnity insurance or a combination of capital and insurance may satisfy the requirement.

Class Minimum Capital Covered Services
Class 1 €50,000 Order execution, reception & transmission of orders, placement of crypto-assets, transfer services for crypto-assets
Class 2 €125,000 Custody & administration of crypto-assets on behalf of clients; portfolio management of crypto-assets
Class 3 €150,000 Exchange of crypto-assets for fiat currency; exchange of crypto-assets for other crypto-assets
EMT/ART Issuers €350,000 Issuance of e-money tokens (EMTs) or asset-referenced tokens (ARTs) — requires credit institution or dedicated authorization

Where a CASP offers services from multiple classes, the highest applicable threshold applies. Capital must be held in liquid assets — cash, bank deposits, or government bonds with residual maturity of less than 90 days. Certain NCAs may impose higher own-funds requirements based on fixed overheads calculation under MiCA Art. 67(3).

Governance Requirements

MiCA imposes robust governance requirements reflecting the systemic importance of crypto-asset services. NCAs pay close attention to management body composition and the independence of control functions.

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Management Body
At least two independent directors (four-eyes principle). At least one must be resident in or regularly present in the licensing jurisdiction. Management body members must collectively possess sufficient knowledge and experience in crypto-asset markets, technology, and regulatory compliance.
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Fit & Proper Assessment
All management body members, qualifying shareholders, and key function holders are subject to NCA fit & proper assessment. This covers professional qualifications, good repute (no criminal convictions, regulatory sanctions), financial soundness, and conflicts of interest.
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Compliance Function
An independent compliance function is mandatory. For smaller CASPs, the compliance officer may hold a dual role, but must have sufficient resources and authority. The compliance function reports directly to the management body and may not be subordinated to business units.
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MLRO Designation
A Money Laundering Reporting Officer (MLRO) must be formally designated. The MLRO must be a natural person, hold an appropriate qualification in AML/CFT compliance, and be resident in the EU. The MLRO is responsible for receiving and assessing internal suspicious activity reports.

AML/KYC Requirements

CASPs are obliged entities under the EU Anti-Money Laundering Directives (AMLD5/AMLD6) and must implement a comprehensive AML/CFT framework as part of their MiCA application. The NCA will require evidence of documented policies and tested procedures.

  • Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) procedures for high-risk clients, including PEPs and sanctioned persons
  • Know-Your-Customer (KYC) onboarding procedures with documented identity verification — electronic ID verification is acceptable if compliant with eIDAS
  • Ongoing transaction monitoring system capable of identifying unusual or suspicious patterns — must be documented and tested
  • Sanctions screening against EU consolidated list, OFAC SDN, and UN sanctions lists — real-time screening at onboarding and periodic re-screening
  • Suspicious Activity Report (SAR/STR) procedures with defined escalation path to the MLRO and national financial intelligence unit (FIU)
  • AML/CFT risk assessment covering the CASP's business model, client base, geographic exposure, and service types
  • Record-keeping procedures (minimum 5 years) for client identification documents, transactions, and internal reports

IT & DORA Requirements

From 17 January 2025, CASPs in scope of DORA (Digital Operational Resilience Act) must comply with its ICT risk management requirements. Even CASPs below DORA thresholds must satisfy MiCA's own ICT requirements under Art. 70.

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ICT Risk Management Policy
A documented ICT risk management framework covering identification, protection, detection, response, and recovery. Must be approved by the management body and reviewed annually. Includes asset inventory, network security policy, and access control procedures.
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Incident Response Plan
Formal incident classification system and response procedures. Major ICT-related incidents must be reported to the NCA within defined timeframes (initial report within 4 hours of classification under DORA). The plan must define roles, escalation paths, and client communication procedures.
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Resilience Testing
CASPs must perform regular ICT resilience testing including vulnerability assessments and, for significant entities, threat-led penetration testing (TLPT). Test results and remediation plans must be documented and available for NCA review.
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Third-Party Risk
CASPs must maintain a register of ICT third-party service providers and conduct due diligence before engagement. Critical ICT providers must be subject to enhanced contractual requirements under DORA Art. 30. Cloud service concentration risks must be assessed and mitigated.

Application Documents Checklist

MiCA Art. 62 and the ESMA Guidelines specify the documents that must accompany a CASP authorization application. The NCA will not start the statutory 3-month review clock until the application is deemed complete.

  • Business plan — detailed description of services, target markets, revenue model, and 3-year financial projections
  • AML/KYC policy — comprehensive anti-money laundering and counter-terrorist financing procedures, risk assessment, and internal controls
  • IT/DORA policy — ICT risk management framework, business continuity plan, disaster recovery plan, and incident response procedures
  • Management CVs and fit & proper declarations — professional background, qualifications, clean criminal record certificates for all management body members
  • Proof of capital — bank statement or auditor confirmation demonstrating the required minimum initial capital is available and unencumbered
  • Organisational chart — legal and operational structure, group structure (if applicable), reporting lines, and key functions identification
  • Governance policy — decision-making procedures, conflicts of interest policy, remuneration policy, and internal control framework
  • Client asset segregation policy — procedures for keeping client funds and crypto-assets segregated from the firm's own assets
  • Complaints handling procedure — documented process for receiving, investigating, and resolving client complaints
  • Custody and key management policy (where applicable) — private key management, cold/hot wallet architecture, insurance arrangements
Jurisdiction-Specific Requirements

Individual NCAs may require additional documents beyond the MiCA minimum. For example, BaFin (Germany) requires a written programme of operations; KNF (Poland) requires documents in Polish. Our team prepares jurisdiction-specific application packages tailored to each NCA's expectations.

MiCA CASP Requirements — FAQ

Capital requirements depend on the services you intend to offer. Class 1 services (order execution, reception/transmission, placement, transfer) require €50,000. Class 2 services (custody, portfolio management) require €125,000. Class 3 (exchange services) requires €150,000. EMT or ART issuers require €350,000. Where multiple classes apply, the highest threshold governs. Capital may alternatively be met via professional indemnity insurance or a combination of both under MiCA Art. 67.
MiCA sets a statutory review period of 3 months from the date the NCA acknowledges receipt of a complete application. However, total elapsed time from preparation to authorization is typically 3–12 months. This includes 1–3 months of application preparation, a completeness check by the NCA (which may pause the clock if documents are missing), the 3-month review, and post-approval formalities. Lithuania (Bank of Lithuania) and Poland (KNF) currently process applications faster than most other EU jurisdictions.
MiCA requires genuine substance in the licensing jurisdiction. At a minimum, members of the management body must reside in or have a regular presence in the jurisdiction where the CASP is authorized. Many NCAs — including BaFin, KNF, and the Bank of Lithuania — require at least one locally resident director or senior manager who has actual decision-making authority. Nominee director arrangements without real substance are likely to fail NCA scrutiny during the fit & proper assessment.
No. MiCA CASP authorization is only available to legal entities established in an EU member state. Non-EU firms wishing to serve EU clients must either establish a subsidiary or branch in an EU member state, or rely on reverse solicitation rules (which are very narrowly construed). Our team can assist with EU company formation in Germany, Lithuania, or Estonia as part of the licensing process.
Yes. MiCA includes a passporting mechanism (Art. 83) that allows a CASP authorized in one EU member state to provide services across all 27 EU member states and EEA countries (Iceland, Liechtenstein, Norway) without further authorization. Passporting requires notification to the home NCA, which then notifies the host NCA. Services can commence 15 working days after notification is acknowledged.

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