by Jude Ayua  

The European Union (EU)’s Markets in Crypto-Assets (MiCA) regulation fully came into effect on 30 December 2024. All crypto asset service providers (CASPs) are now required to obtain a MiCA license to legally operate across EU member states.

The harmonized licensing approach replaces the previous multi-national regulations in the region, providing a unified standard for market participants.

However, existing virtual asset service providers (VASPs) can continue their operations under current national licenses until 31 December 2025. In select jurisdictions, this transitional period may extend until 1 July 2026, allowing ample time for CASPs to secure a MiCA license.

Key Considerations

Key considerations under MiCA include consumer and environmental protection. MiCA mandates that CASPs provide clear and comprehensive information to consumers, enhancing transparency and protecting investors’ interests. This includes detailed disclosures about the nature of crypto-assets and their associated risks.

MiCA also addresses environmental concerns by requiring CASPs to disclose information related to the sustainability of their operations, promoting eco-friendly practices within the industry.

The European Securities and Markets Authority (ESMA) oversees the implementation of MiCA, ensuring that CASPs adhere to the established standards and maintain market integrity.

Prior to MiCA’s coming into full force, several entities began submitting applications for CASP licenses in EU jurisdictions. This special report highlights the approved entities between MiCA’s coming into force and January 2025.

Read also: Stablecoins in the European Market: MiCA, Tether, and Potential impacts on USDT.

Approved entities

• Bitpanda: Austria-based crypto exchange Bitpanda, obtained the CASP license in Germany from the Federal Financial Supervisory Authority (BaFin). Its German subsidiary can now process cryptocurrency transactions for German customers under its Crypto Custody and Proprietary Trading license.

A Coindesk report on 27 January noted Bitpanda has 6 million users as of December 2024 and hopes to leverage its MiCA license to expand in Europe. “This milestone enables us to bring easy and safe investing to over 450 million people, unlocking unparalleled growth potential in a market we’re ready to fully conquer,” CEO and co-founder of Bitpanda, Eric Demuth, said in a statement. In addition to its German license, Bitpanda also holds licenses in Austria, France, Czech Republic, Sweden, Italy, Spain, Sweden and the UK.

• OKX: OKX announced on 23 January it obtained MiCA pre-authorization in Malta from the Maltese Financial Services Authority (MFSA). Its EEA clients can now buy and sell cryptocurrencies, deposit and withdraw euros via bank transfer or using credit cards on the platform with no applicable fees.

“Obtaining this MiCA pre-authorization is a key step for OKX and reinforces our mission: to contribute to the construction of the international crypto ecosystem in a responsible manner,” Erald Ghoos, CEO of OKX Europe, noted.

OKX chose Malta for its MiCA headquarters because of the country’s regulatory approach and clear standards for blockchain and cryptocurrency.

Ghoos emphasized the company’s compliance oriented approach: “OKX will be the reference platform for both individuals and European institutions across all digital asset offerings, within a fully regulated framework.”

Hong Fang, the president of OKX, noted Europe’s favorable regulatory environment: “This pre-authorization demonstrates our long-term commitment to this major market. Europe’s position in favor of clear and consistent regulation is essential for shaping the future of the global digital economy, and we are excited to participate in this unique experience.“

OKX’s MiCA authorization would make it the exchange’s eighth license globally. The exchange already holds the MFSA-issued Virtual Financial Asset (VFA) exchange license.

• Crypto.com: On 17 January 2025, Crypto.com became the first cryptocurrency exchange worldwide to secure a MiCA license. Eric Anziani, president and COO, Crypto.com, commented on the notable achievement:

“We have always been fully supportive of MiCA and strongly believe it will bring clarity, transparency, and establish a more streamlined sentiment towards the regulation of our industry across the EU, all of which adds to the building confidence in the crypto sector.”

“We have consistently shown our commitment to responsible expansion across the EU, a growing and vital hub for crypto investment, and we look forward to working with the Union to ensure we continue to grow in a compliant manner under the MiCA regulation,” Anziani added. 

• Boerse Stuttgart Digital: On 17 January 2025, Boerse Stuttgart Digital  received the MiCA CASP license, becoming the first German entity to obtain it. Commenting on the license, Dr. Matthias Voelkel, CEO of Boerse Stuttgart Group, said:

“Securing the MiCAR license marks a significant milestone for the Boerse Stuttgart Group. Building on this foundation, we will broaden Boerse Stuttgart Digital’s offerings with integrated solutions for financial institutions across Europe, accelerating the internationalization and structural growth of our digital business.”

Dr. Oliver Vins, Managing Director and Chief Finance & Regulatory Officer of Boerse Stuttgart Digital also commented, “The licensing of Boerse Stuttgart Digital underscores our commitment to shaping transparent, secure, and regulated crypto markets…we can now provide investors and institutional partners across Europe with simple and reliable access to cryptocurrencies.”

Dr. Vins commended Germany’s for issuing the MiCA license just a few weeks after its adoption, which shows the country’s competitiveness in the European crypto market.

• Standard Chartered: On 9 January, Standard Chartered obtained a licence in Luxembourg to offer digital asset custody services to EU clients. Standard Chartered extended its business there following implementation of the MiCA regulation. Standard Chartered’s opening of a new business in Luxembourg is part of its global digital asset strategy, enabling it to broaden its digital asset portfolio. 

Margaret Harwood-Jones, Standard Chartered’s Global Head of Financing & Securities Services, said: “We are really excited to be able to offer our digital asset custody services to the EU region, enabling us to support our clients with a product that is changing the landscape of traditional finance, whilst also providing the level of security that comes with being an appropriately regulated entity.”

Laurent Marochini, Standard Chartered’s Luxembourg CEO, said, “It is an honour to join the leading international bank, Standard Chartered Luxembourg as CEO. I am fully committed to delivering excellence for our clients, team and stakeholders.”

• Bullish: On 9 January, Bullish DE Custody GmbH, the German digital asset arm of Bullish Group, announced it obtained “crypto asset custody, proprietary trading, and principal brokerage” licenses from the BaFin. The licenses were issued on 20 December 2024. 

Tom Farley, CEO of Bullish, proudly stated, “We are excited to bring our trusted capabilities to this dynamic market, providing institutions and professional investors with a secure, regulated environment for digital asset trading.”

Complementing its latest milestone in Germany, Bullish is also gearing up to be among the next batch of crypto exchanges that will offer the Ripple USD (RLUSD). Last October, Ripple announced a strategic partnership with the company.

Read also: MiCA: Cryptoasset operators approved in landmark EU law. Implications for Nigeria, Others.

• Hidden Road: On 7 January,  Hidden Road, the global credit network for institutions, announced that its Netherlands entity, Hidden Road Partners CIV NL B.V. (HRP CIV NL), has received a license from the Dutch AFM under MiCA.

“Our licenses and registrations around the world demonstrate our commitment to serve our counterparties across traditional and digital assets in a transparent, regulated manner,” said Michael Higgins, Hidden Road’s International CEO and Global Head of Corporate Development. “We welcome the new MiCAR license and embrace the clarity it provides our European clients,” he added.

Already a registered CASP with the Dutch National Bank (DNB), HRP CIV NL, the firm’s new MiCA license is a significant addition to its operations. HRP CIV NL is also a licensed investment firm under the EU’s Markets in Financial Instruments Directive (MiFID) legislation, making it the only company to hold both MiFID and MiCA licenses under the Dutch AFM’s supervision.

• HashKey: In Ireland, the central bank issued HashKey Europe the MiCA license on 7 January. The firm is the European subsidiary of the Hong Kong-based exchange.

“We are excited to establish a new presence in the EU, bringing us one step closer to aligning with MiCA regulations and advancing our mission to drive responsible innovation in the digital asset space,” commented HashKey Global managing director Ben El-Baz.

The MiCA license makes it the HashKey Group’s first CASP license in Europe, giving it leverage to foster its operations in the global Web3 ecosystem. HashKey has previously obtained licenses in Hong Kong, Japan, Bermuda, and Singapore. However, unlike other regions requiring a separate license for each country, MiCA allows licensed CASPs to obtain one license and operate in the 26 other nations, serving a combined 450 million residents with a combined $19.5 trillion GDP.

With the MiCA license, HashKey Europe Limited can now offer a broad range of regulated services including facilitating exchanges between virtual assets and fiat currencies, as well as conversions between different virtual assets.

Read also: MiCA: OKX delists Tether (USDT) trading pairs for Users in Europe. What next?

• BitStaete: On 30 December 2024, BitStaete Asset Management, an Eastern Netherlands-based digital asset management firm, announced it had obtained an official MiCA license from the Dutch AFM.

“This milestone marks an important step for both BitStaete and the future of the European crypto sector. It is a confirmation of our commitment to transparency, security and professionalism, and our commitment to combining innovation with compliance with European laws and regulations,” BitStaete stated in its announcement.

“With this license, we strengthen our position as a partner for high net worth individuals, entities, funds and family offices throughout Europe. Together, we are building a future where crypto assets are an integral part of any professional investment portfolio,” it added.

• MoonPay: MoonPay, a Florida-based digital asset payments and transfer firm, was among the first international companies to receive a MiCA license in the Netherlands. The Dutch Authority for the Financial Markets (AFM) issued a license to MoonPay on 30 December 2024. MoonPay described the license as “a pivotal step in solidifying the crypto industry’s role in the global economy.”

“We are excited to deepen our collaborations with regulators, businesses, and users as we pave the way for the future of crypto,” commented MoonPay CEO and Co-founder Ivan Soto-Wright. “This approval is a testament to MoonPay’s proactive approach to regulation and our commitment to building a trusted bridge between the traditional financial world and the rapidly evolving crypto ecosystem,” added Soto-Wright.

Soto-Wright described MiCA as representing a pivotal moment for the European digital asset industry, saying MoonPay is proud to be among the first to embrace the new framework.

• ZBD: In late December 2024, ZBD announced that it obtained the MiCA license from the Dutch AFM.

“This achievement positions ZBD as a leader in crypto-asset innovation and compliance in the EU, allowing us to expand our transformative digital-native payments platform with new services and in new markets,” ZBD stated in its announcement.

“Now that we have approval…we can offer a wide range of services across the entire EU. From managing crypto assets to exchange between fiat and crypto currencies, we’ve got it covered,” ZBD added.

The firm also celebrated, “We don’t have to deal with complicated, country-by-country regulations — we can operate seamlessly across all EU member states and bring our payment solutions to more businesses and users.”

Read also: Coinbase delists multiple stablecoins in EU markets.

Pending applications

• Gemini: Gemini has chosen Malta for its MiCA license application, according to an announcement on 20 January. This decision came shortly after Gemini received its sixth European virtual asset service provider (VASP) registration from the Malta Financial Services Authority (MFSA) in December 2024. Gemini believes Malta’s proactive approach toward fintech innovation and the crypto industry would be an ideal environment for its operations in Europe.
• LCX: Liechtenstein crypto exchange, LCX, officially filed a pre-application for the MiCA license under Liechtenstein’s Financial Market Authority (FMA) in December 2024. Liechtenstein’s implementation of MiCA will take effect on 1 February 2025. LCX’s MiCA license will give it full market access across the European Economic Area (EEA).

LCX has already registered as a CASP in Liechtenstein since 2020 and holds more registrations under the country’s Blockchain Laws than any other company in the country.

Commenting on the pre-application, Monty C. M. Metzger, CEO and Founder of LCX, stated:

“Filing for the preliminary MiCA license is a pivotal step in our growth strategy and reflects our long-standing commitment to regulatory excellence. We have always been a leader in driving compliance within the crypto industry, and this move will enable us to continue delivering innovative, compliant, and secure services to become the leading crypto exchange in Europe.”

Read also: UAE approves AED’s dirham-backed stablecoin.

ESMA urges restriction of non-MiCA-compliant stablecoins

While EU countries are implementing the MiCA regulation nationally, the ESMA is taking proactive steps regarding stablecoins. ESMA issued a statement related to asset-referenced tokens (ARTs or stablecoins) on 17 January, urging CASPs to take urgent measures regarding non-MiCA-compliant stablecoins.

However, the ESMA did not specify which non-compliant issuers or stablecoins should be restricted.

Compliance efforts

Digital asset exchanges and issuers have taken proactive measures to comply with the MiCA regulation. 

• Binance: On 17 January, Binance updated its cryptocurrency deposit and withdrawal procedures in Poland to comply with the regulation. Binance wrote in a blog post, “Starting Jan. 20, users may need to provide more information when performing crypto deposits and withdrawals.” 

Binance would now require crypto deposits exceeding €1,000 ($1,030.80) and all withdrawals. Users must also provide their full name, country and crypto exchange name for deposits and withdrawals.

Binance clarified that these updates only affect crypto transfers, but warned that it may delay or return transactions if the required information is unavailable.

• Coinbase: On 11 December 2024, Coinbase announced the delisting of Tether (USDT) and five other stablecoins across Europe: PAX, PYUSD, GUSD, GYEN, and DAI, effective from 13 December 2024, for their non-compliance with MiCA. 

In a statement, Coinbase informed customers of their options to either convert the affected assets to MiCA-compliant alternatives such as USDC and EURC or transfer them to a self-custody wallet. The exchange reiterated its commitment to regulatory compliance and stated that delisted stablecoins might be reintroduced once they achieve MiCA compliance.

Read also: How the EU is taking the lead in cryptocurrency regulation.    

 

 

 

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Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com