MiCA Compliance: Preparing for Regulatory Transition

Introduction

MiCA transforms the European crypto landscape — prepare your PSAN-to-CASP transition now.

The MiCA regulation (Markets in Crypto-Assets) is revolutionizing the European regulatory framework for crypto-assets. For French PSANs (Prestataires de Services sur Actifs Numeriques — Digital Asset Service Providers), the transition to CASP (Crypto-Asset Service Provider) status is a crucial step to prepare for now. This guide details MiCA requirements and provides a roadmap for successful compliance.

What you will learn:

• The main requirements of the MiCA regulation
• The PSAN-to-CASP transition
• New organizational obligations
• The compliance timeline and milestones
• Expected costs and resources

Table of Contents

1. Understanding MiCA
2. Application Timeline
3. CASP Authorization: Requirements
4. Capital and Insurance Requirements
5. Governance and Organization
6. Client Protection
7. Transparency Obligations
8. Crypto-Asset White Papers
9. PSAN-to-CASP Transition
10. Compliance Implementation Plan
11. FAQ

1. Understanding MiCA

A harmonized regulatory framework for all crypto actors in the European Union.

Overview of the Regulation

MiCA (Markets in Crypto-Assets Regulation) is the European Regulation (EU) 2023/1114 establishing a harmonized framework for crypto-assets in the European Union.

"This Regulation lays down uniform requirements for the offer to the public and admission to trading of crypto-assets... as well as requirements for crypto-asset service providers." — Article 1, MiCA Regulation

Objectives of MiCA

Goals of the regulation:

Scope of Application

What MiCA covers:

+-------------------------------------------------------------+
|                    MiCA SCOPE                                |
|                                                              |
|  +-----------------------------------------------------+    |
|  |              CRYPTO-ASSETS                           |    |
|  |                                                      |    |
|  |  - Utility tokens                                    |    |
|  |  - Asset-referenced tokens (stablecoins)             |    |
|  |  - E-money tokens (EUR/USD stablecoins)              |    |
|  |  - Other non-financial crypto-assets                 |    |
|  +-----------------------------------------------------+    |
|                                                              |
|  +-----------------------------------------------------+    |
|  |              SERVICE PROVIDERS (CASP)                |    |
|  |                                                      |    |
|  |  - Custody and administration                        |    |
|  |  - Platform operation                                |    |
|  |  - Crypto <> fiat exchange                           |    |
|  |  - Crypto <> crypto exchange                         |    |
|  |  - Order execution                                   |    |
|  |  - Placement                                         |    |
|  |  - Advisory                                          |    |
|  |  - Portfolio management                              |    |
|  |  - Transfer for third parties                        |    |
|  +-----------------------------------------------------+    |
+-------------------------------------------------------------+

+-------------------------------------------------------------+
|                    OUTSIDE MiCA SCOPE                        |
|                                                              |
|  - Security tokens (-> MiFID II)                             |
|  - Truly unique NFTs                                         |
|  - CBDCs (central bank digital currencies)                   |
|  - Truly decentralized DeFi (debated)                        |
+-------------------------------------------------------------+

2. Application Timeline

June 2026 marks the end of PSAN — prepare your CASP authorization now.

Key Dates

Transitional Period for PSANs

Regime applicable to PSANs registered before 12/30/2024:

                    12/30/2024                    06/30/2026
                        |                             |
   BEFORE               |        TRANSITION           |      AFTER
------------------------+-----------------------------+-----------------
                        |                             |
 French PSAN regime     |   PSAN or CASP possible     |  CASP mandatory
                        |                             |
                        |   - Continue as PSAN        |  - End of PSAN
                        |   - Apply for CASP          |  - CASP required
                        |   - Simplified procedure    |    to operate
                        |     available               |

3. CASP Authorization: Requirements

From advisory to custody, nine crypto-asset services require authorization.

Services Requiring Authorization

List of crypto-asset services (Art. 3(16) MiCA):

General Authorization Conditions

Requirements for all CASPs (Art. 59 MiCA):

Authorization Procedure

Application steps:

1. File preparation (2-4 months)

   • Regulatory forms
   • Activity program
   • Business plan
   • Procedures and policies
   • Technical documentation

2. Filing with the national authority (AMF in France)

3. Review (up to 3 months + possible extensions)

   • Completeness check
   • Substantive analysis
   • Exchanges with the applicant

4. ESMA opinion (for certain files)

5. Decision (authorization or reasoned refusal)

6. Registration in the European register

4. Capital and Insurance Requirements

From EUR50,000 to EUR150,000 minimum depending on services offered.

Minimum Capital

Amounts by service (Art. 60 MiCA):

The highest applies if multiple services are offered.

Ongoing Prudential Requirements

Minimum own funds (Art. 60(2)):

The CASP must maintain at all times own funds at least equal to the higher of:

• The applicable minimum capital
• One quarter of the previous year's overhead expenses

Professional Liability Insurance

Alternative to additional capital (Art. 60(5)):

The guarantee must cover:

• Liability for negligence
• Subcontractor errors
• Loss of client crypto-assets (for custodians)

5. Governance and Organization

Minimum two directors, formalized policies, and rigorous conflict of interest management.

Governance Requirements (Art. 62)

Management body:

• At least 2 persons
• Strategy definition
• Implementation oversight
• Ultimate compliance responsibility

Director competencies:

• Good reputation
• Sufficient knowledge
• Adequate experience
• Sufficient time devoted to their functions

Remuneration Policy

Requirements (Art. 62(3)):

• Written documented policy
• No incentive for excessive risk-taking
• Alignment with client interests
• Applicable to all staff

Conflict of Interest Management

Obligations (Art. 64):

+-------------------------------------------------------------+
|              CONFLICT OF INTEREST MANAGEMENT                 |
|                                                              |
|  1. IDENTIFICATION                                           |
|     - Map all potential conflicts                            |
|     - Between CASP and clients                               |
|     - Between clients                                        |
|     - With directors/staff                                   |
|                                                              |
|  2. PREVENTION                                               |
|     - Information barriers (Chinese walls)                   |
|     - Separation of functions                                |
|     - Non-conflicting remuneration                           |
|                                                              |
|  3. MANAGEMENT                                               |
|     - Procedures if conflict unavoidable                     |
|     - Escalation to management                               |
|     - Documentation                                          |
|                                                              |
|  4. DISCLOSURE                                               |
|     - If conflict cannot be managed -> client disclosure     |
|     - Nature and source of conflict                          |
|     - Measures taken                                         |
+-------------------------------------------------------------+

Business Continuity

Continuity plan (Art. 62(2)(g)):

• Identified disaster scenarios
• Failover procedures
• Return of crypto-assets to clients
• Defined recovery timeframes
• Periodic testing

6. Client Protection

Asset segregation, enhanced information, and insolvency protection required.

General Obligations

Basic principle (Art. 63):

"Crypto-asset service providers shall act honestly, fairly and professionally in the best interest of their clients."

Client Crypto-Asset Custody

Segregation rules (Art. 70):

Pre-Contractual Information

Mandatory content (Art. 66):

• Description of services
• Fees and costs
• Pricing policy
• Risks related to crypto-assets
• Complaints handling policy
• Termination conditions

Complaints

Mandatory procedure (Art. 66(4)):

• Free complaints procedure
• Response within a reasonable timeframe
• Information about the mediator
• Retention of complaints and responses

7. Transparency Obligations

Visible pricing, public policies, and regulated marketing communications for all CASPs.

General Transparency Obligations

Mandatory publications:

Pricing Transparency

Requirements (Art. 66(3)):

• All fees and costs
• Published visibly
• In understandable language
• Before the service is provided
• Comparability facilitated

Marketing Communications

Rules (Art. 7):

• Clear identification as marketing communication
• Accurate, clear, non-misleading information
• No concealment of risks
• Consistency with the white paper if applicable

8. Crypto-Asset White Papers

Mandatory document for any public offering of crypto-assets in Europe.

When a White Paper Is Required

Public offering (Art. 4):

• Any issuer offering crypto-assets to the public
• Or requesting admission to trading
• Publication and notification to the authority

Mandatory Content

Required information (Annex I):

MiCA WHITE PAPER
|
+-- 1. GENERAL INFORMATION
|   +-- Issuer identity
|   +-- Contact
|   +-- Issuance date
|   +-- Legal disclaimers
|
+-- 2. PROJECT AND CRYPTO-ASSET
|   +-- Detailed description
|   +-- Technical characteristics
|   +-- Functionalities
|   +-- Attached rights
|
+-- 3. RISKS
|   +-- Issuer-related risks
|   +-- Crypto-asset-related risks
|   +-- Project-related risks
|   +-- Technology-related risks
|
+-- 4. OFFERING
|   +-- Offering terms
|   +-- Price or determination method
|   +-- Number of crypto-assets
|   +-- Use of proceeds
|
+-- 5. RIGHTS AND OBLIGATIONS
|   +-- Holder rights
|   +-- Issuer obligations
|   +-- Redemption conditions
|
+-- 6. TECHNICAL INFORMATION
    +-- Blockchain used
    +-- Consensus mechanism
    +-- Smart contracts
    +-- Security audits

Issuer Liability

Commitment (Art. 15):

• The white paper is binding
• Liability for misleading information
• Possible investor recourse

9. PSAN-to-CASP Transition

Simplified procedure available for PSANs registered before December 2024.

Options for Existing PSANs

Three possible paths:

Simplified Procedure

Eligibility conditions (Art. 143(6)):

• PSAN registered before 12/30/2024
• Good compliance track record
• No significant sanctions
• Application before 06/30/2026

Possible reliefs:

• Reduced review timelines
• Certain documents already provided for PSAN reusable
• Focus on PSAN -> CASP gaps

Gap Analysis PSAN -> CASP

Main gaps to bridge:

10. Compliance Implementation Plan

Fifteen months of intensive preparation for a successful MiCA transition.

Phase 1: Diagnostic (M1-M2)

Actions:

• Gap analysis PSAN -> CASP
• Assessment of available resources
• Identification of needs (capital, personnel, tools)
• Budget definition
• Project team formation

Phase 2: Preparation (M3-M6)

Actions:

• Capital reinforcement if necessary
• Professional liability insurance subscription
• Drafting missing policies
• Updating existing procedures
• Team training
• IT system adaptation

Phase 3: File Preparation (M7-M9)

Actions:

• Activity program drafting
• Policy finalization
• Supporting document collection
• CV and good repute preparation
• Legal review of the file
• AMF pre-consultation (recommended)

Phase 4: Filing and Review (M10-M15)

Actions:

• File submission to AMF
• Responses to supplementary requests
• Adjustments if necessary
• Production readiness preparation

Phase 5: Implementation (M16+)

Actions:

• Authorization receipt
• Commercial document updates
• Client communication
• European register inscription
• Business commencement under CASP

Cost Estimates

Indicative budget for PSAN -> CASP transition:

11. FAQ

General Questions

Q: Does MiCA replace PSAN?

A: Yes, eventually. The MiCA CASP status replaces national regimes (including the French PSAN). After June 30, 2026, only CASP authorization will allow operation.

Q: Is the European passport automatic with CASP?

A: Yes. A CASP authorized in one member state can operate across the entire EU via notification ("passport") without additional authorization in each country.

Q: Does MiCA cover DeFi?

A: MiCA targets identifiable entities. "Truly decentralized" DeFi without a central intermediary could fall outside the scope, but interpretation remains debated and will depend on ESMA positions.

Practical Questions

Q: How long does it take to obtain CASP authorization?

A: Officially, the authority has 3 months to decide (with possible extension to 5 months). In practice, including file preparation, expect 12-18 months total.

Q: Can I continue operating during the authorization application?

A: Yes, if you are a registered PSAN, you can continue until June 30, 2026, while your CASP application is pending.

Q: Is authorization required per service or one overall authorization?

A: Authorization is global but specifies the authorized services. You apply for authorization for the services you wish to provide.

Technical Questions

Q: Do technical requirements (cybersecurity, IT) change?

A: MiCA strengthens general operational resilience requirements. The DORA regulation (Digital Operational Resilience Act) will also apply to CASPs for cybersecurity.

Q: Are smart contracts covered?

A: MiCA does not specifically address smart contracts. However, a CASP using smart contracts must ensure their reliability and security as part of its general obligations.

Conclusion

MiCA represents a major transformation of the European crypto-asset regulatory landscape. For French PSANs, the transition to CASP status is inevitable and must be anticipated now.

Key points to remember:

1. June 30, 2026 deadline: end of the PSAN regime
2. European passport: major commercial opportunity
3. Enhanced requirements: capital, insurance, governance
4. Significant investment: estimated EUR200-500k
5. Simplified procedure: available for compliant PSANs
6. Early planning recommended: start 18+ months ahead

Recommended roadmap:

• Conduct a PSAN -> CASP gap analysis now
• Budget the necessary investments
• Form a dedicated project team
• Engage specialized advisors
• Prepare the authorization file
• Communicate internally about the transition

MiCA is not a constraint but an opportunity for European growth for those who prepare effectively.

Article updated in December 2025. The information presented is educational and does not constitute legal advice. Consult a qualified professional for your specific situation.

Related Articles — Professional Compliance

• Travel Rule: PSAN Compliance
• PSAN: Digital Asset Service Provider
• AML/CFT Crypto Guide for Professionals

Sources

• Regulation (EU) 2023/1114 (MiCA)
• AMF — Guidance on PSAN-to-CASP transition
• ESMA — Technical standards and guidelines
• European Commission — MiCA Q&A