The Markets in Crypto-Assets Regulation (MiCA) is revolutionizing the crypto-asset industry across the EU. For crypto brokerage services, MiCA sets a clear framework to ensure transparency, compliance, and security. Here’s what you need to know:
What is crypto brokerage?
Crypto brokerage involves facilitating buying, selling, and exchanging crypto-assets on behalf of clients. This includes services like:
- Order execution
- Custody and safekeeping
- Intermediation between buyers and sellers
- Licensing requirements
To operate as a crypto broker, MiCA mandates:
- Authorization as a Crypto-Asset Service Provider (CASP)
- Meeting capital requirements: €50,000–€150,000 depending on services
- Establishing a legal entity in an EU Member State
Compliance obligations
Brokers must adhere to strict rules:
- AML/CTF compliance: conduct thorough KYC checks and monitor transactions
- Consumer protection: ensure transparency, disclose fees, and avoid conflicts of interest
- Operational security: protect clients’ assets with advanced cybersecurity measures
Key features for crypto brokers
- Cross-border access: authorized CASPs enjoy EU-wide passporting, making it easy to operate in 27 countries
- Disclosure requirements: all fees, charges, and risks must be clearly communicated to clients
Stable timeline
Opportunities:
- Unified market: a single license opens access to the entire EU
- Enhanced trust: clear rules boost institutional and consumer confidence
- Growth potential: legal clarity encourages broader adoption of crypto services
Challenges:
- Navigating evolving classifications for tokens (utility, stablecoins, etc.)
- Aligning internal processes with stringent MiCA reporting standards
- Balancing compliance with operational efficiency