14/09/25
The Markets in Crypto-Assets Regulation (MiCA), fully effective for CASPs as of 30 December 2024, introduces a harmonised EU licensing regime. But does one license truly enable firms to passport services seamlessly across all Member States - or are there still limits to watch?
📘 The Regulatory Framework
MiCA creates a single EU-wide authorisation regime for crypto-asset service providers (CASPs). Once authorised by the competent authority in one Member State, a CASP may, in principle, offer its services across the EU without needing separate national licenses. This system mirrors the “passporting” model seen under financial services directives like MiFID II. Transitional provisions apply: existing providers operating before MiCA can continue under national law during their country’s grandfathering period, but they must obtain full MiCA authorisation to benefit from EU-wide passporting.
⚖️ Passporting vs Grandfathering
It is critical to separate grandfathering rights from passporting. A CASP covered by a transitional regime does not automatically gain the right to operate across the EU. Only once full MiCA authorisation is granted does passporting apply. Grandfathering windows vary by Member State, with ESMA confirming periods up to 18 months. This means the urgency of applying depends on the jurisdiction - some firms have more time than others to secure their MiCA license.
📊 Practical Impacts Across the EU
Some Member States are positioning themselves as attractive gateways for MiCA licensing by offering faster processing, pre-licensing guidance, or lower fees. However, national regulators (NCAs) retain discretion in how they handle applications and enforce requirements. Firms expanding into multiple EU markets should carefully assess timing, costs, and compliance burdens. On top of MiCA, CASPs must also prepare for related obligations such as the Digital Operational Resilience Act (DORA), which imposes additional governance and risk management duties.
✅ Conclusion & Call-to-Action
A MiCA license does unlock EU-wide passporting - but only once granted, and only if the provider complies with MiCA’s strict standards. Grandfathering keeps firms temporarily in business but does not replace full authorisation. With varying national transitional periods and overlapping EU regimes like DORA, strategic planning is essential. If your business is seeking clarity on how to structure its MiCA licensing, NUR Legal can assist with applications, compliance, and cross-border operations. Visit us at NUR-Legal.com or contact us directly at nurlan@nur-legal.com
Emil Korpinen