MiCA Compliance: Which Crypto Services Are Covered and Which Are Not?

As the Markets in Crypto-Assets (MiCA) regulation approaches its enforcement date, crypto companies need to understand which services fall under its scope and which do not. This is crucial for ensuring compliance and avoiding potential penalties.

Services Regulated Under MiCA

Spot Trading: Platforms offering spot trading of crypto-assets are fully regulated under MiCA. This applies to any direct trading of crypto-assets without leverage.
Custody and Wallet Services: Providers offering custodial wallet services or crypto custody solutions must comply with MiCA. These services involve holding and securing clients' crypto-assets.
Issuance of Crypto-Assets: MiCA also covers the issuance of crypto-assets, such as utility tokens, stablecoins, and e-money tokens. If your company issues or distributes these types of assets, compliance with MiCA is mandatory.
Advisory & Brokerage Services: Offering investment advice or brokering crypto-assets also brings your business under MiCA's purview. These services are required to comply with investor protection and market conduct rules.

Services Not Regulated Under MiCA

Futures and Margin Trading: Derivatives like futures and margin trading fall under the scope of MiFID II, not MiCA. These products are classified as financial instruments, which are already regulated under existing financial markets regulations.
Lending Services: Crypto lending is not directly regulated by MiCA. This is because lending platforms fall under financial services regulation frameworks rather than crypto-asset-specific ones.
Fully Decentralized Platforms (DeFi): If your platform operates with no identifiable intermediary (fully decentralized), it may not fall under MiCA’s scope. However, this area is still subject to ongoing regulatory discussions, and businesses should remain vigilant for potential updates.

How ComplyWiser Can Help

At ComplyWiser, we offer end-to-end support to help crypto businesses navigate MiCA compliance. Whether your company deals with spot trading, custodial services, or the issuance of crypto-assets, we ensure that you stay compliant with MiCA's regulations. We also guide companies outside MiCA's scope to ensure they are aware of related regulatory frameworks such as MiFID II.

Our services include:

Compliance strategy development
Licensing assistance
Ongoing regulatory updates and support

Make sure your crypto business is prepared for MiCA. Contact ComplyWiser today for expert guidance and full regulatory compliance.

The Business Plan: A Crucial Element for Your MiCA Application

This article emphasizes the importance of a comprehensive business plan for crypto companies applying for MiCA compliance in the EU. A strong business plan demonstrates viability, regulatory preparedness, and operational resilience. It helps businesses stand out by showing professionalism and trustworthiness to regulators. Key sections include market analysis, financial projections, and compliance frameworks. Complywiser specializes in crafting tailored, MiCA-compliant business plans, ensuring a smooth application process by addressing governance, risk management, and compliance requirements.

Crypto-Asset Service Providers (CASPs): New Rules and Responsibilities Under MiCA

MiCA introduces a regulatory framework for Crypto-Asset Service Providers (CASPs) in the EU, focusing on registration, prudential requirements, conduct rules, and AML/CFT compliance. CASPs must be authorized, maintain capital reserves, safeguard client assets, and uphold transparency and fair practices. Compliance with MiCA ensures market stability, consumer protection, and cross-border service opportunities while reducing regulatory risks.

Understanding MiCA: The Classification of Crypto-Assets

MiCA classifies crypto-assets into three types: e-money tokens (pegged to a fiat currency), asset-referenced tokens (backed by multiple assets), and other crypto-assets (utility tokens). Each category has specific regulations to ensure consumer protection, market stability, and transparency, helping businesses comply and investors make informed decisions.