Unlock EU market access with MiCA licensing: The time to act is now

The implementation of the Markets in Crypto-Assets (MiCA) Regulation marks a transformative milestone for the crypto industry across the European Union. As of December 30, 2024, MiCA establishes a single regulatory framework and creates a level playing field for crypto-asset service providers (CASPs). Whether your company is already operating in the EU or planning to expand into this dynamic market, obtaining a MiCA license is essential to thriving in the new regulatory environment. What does it mean to be governed by MiCA?

Why MiCA is important for your business

MiCA introduces consistent regulatory requirements across all EU member states, replacing fragmented national frameworks. This EU-wide approach simplifies compliance and eliminates legal uncertainty, allowing CASPs to seamlessly scale their operations across borders. By establishing clear guidelines, MiCA enhances market integrity, protects investors, and promotes innovation. For businesses, compliance with MiCA is essential to avoid legal repercussions, maintain market credibility, and operate efficiently.

With a MiCA license, your company gains the ability to passport services throughout the EU, accessing a market of over 450 million potential users under one regulatory umbrella.

Licensing Opportunities in the EU

Several EU nations have become prominent destinations for obtaining MiCA licenses, characterized by supportive regulatory frameworks.

Lietuvos Bankas: A Proven Licensing Leader in the EU

In Lithuania, Lietuvos Bankas emphasizes early and well-prepared applications, with a focus on maintaining high compliance standards. They urge CASPs to:

• Act quickly: Early applications ensure business continuity during the transition period.
• Prepare thoroughly: Only high-quality applications will be considered, making readiness a key factor in the process.
• Remain compliant after approval: Compliance with ongoing MiCA requirements ensures long-term operational success.

Latvijas Banka: A fintech-friendly approach

As of January 2, 2025, Latvijas Banka, the central bank of Latvia, is accepting applications for MiCA licenses. They offer:

• Free pre-licensing consultations: Tailored expert guidance to assess application feasibility, ensure document readiness, and navigate compliance requirements.
• Fast response times: Consultations are typically answered within 48 hours, streamlining the pre-licensing process and reducing time to market.
• Competitive fees: A monitoring fee of just 0.6%, with a minimum of $3,000 per year.
• Additional Support: Access to the Innovation Hub, Regulatory Sandbox, and startup-friendly incentives such as co-funding for qualified employees and tax breaks.

Each jurisdiction presents distinct benefits that should be carefully assessed against the operational requirements and compliance needs of the business. Lithuania’s and Latvia‘s flexible yet robust regulatory framework, combined with theit digital infrastructure, makes meeting these requirements more streamlined than in many other jurisdictions.

Grandfathering periods for existing CASPs

Transitional arrangements under MiCA provide for a grandfathering period for CASPs operating before December 30, 2024. These periods vary by country, with some member states offering up to 18 months for license applications. For example:

• Ireland, Estonia and the Czech Republic: up to 18 months.
• Latvia and Lithuania: 5-6 months, with immediate action required to meet shorter deadlines.

How MiCA raises regulatory standards

MiCA’s comprehensive framework goes beyond licensing to address:

• Crypto asset classification: Proper classification is critical to determining regulatory obligations. Misclassification risks compliance issues and operational disruptions.
• Operational Resilience: Strengthened IT systems and robust governance under the Digital Operational Resilience Act (DORA).
• Sustainability Goals: Integration of environmental, social and governance (ESG) practices to ensure alignment with broader EU goals.

Your Next Steps

Securing a MiCA license isn’t just a regulatory requirement; it’s an opportunity to build credibility and access Europe’s integrated market. At ECOVIS ProventusLaw, we specialize in navigating the complexities of MiCA in the EU. ECOVIS ProventusLaw offers:

• Pre-licensing support: Comprehensive readiness assessments and document preparation.
• Application Guidance: End-to-end support to ensure a smooth licensing process.
• Post-licensing compliance and internal audit: Ongoing support to maintain alignment with MiCA, DORA, and ESG requirements.

With MiCA now in effect, now is the time to act. Contact us today to discuss how we can help you unlock the potential of the EU crypto market and ensure your compliance journey is seamless and successful.

For further information please contact:

Inga Karulaitytė, Partner of ECOVIS ProventusLaw
Email: inga.karulaityte@ecovisproventuslaw.com