Eu casp-license
What is the MiCA?
The Markets in Crypto Assets Regulation (MiCA) entered into force in June 2023 following its publication in the Official Journal of the European Union. The MiCA is an essential development towards establishing a unified regulatory framework within the European Union (EU) for regulating and supervising the activities of the issuance, trading and provision of services in relation the crypto assets.
The MiCA shall eventually replace the existing national regimes with its harmonized European framework.
What is a crypto-asset service provider (CASP)?
Crypto-asset service provider (CASP) is defined under MiCA as a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is authorized to provide crypto-asset services in accordance with the provisions of the MiCA.
According to the MiCA, a crypto-asset service means any of the following services and activities relating to any crypto-asset:
- providing custody and administration of crypto-assets on behalf of clients;
- operating a crypto-asset trading platform for crypto-assets;
- exchanging crypto-assets for funds;
- exchanging crypto-assets for other crypto-assets;
- executing crypto-asset orders on behalf of clients;
- placing of crypto-assets;
- receiving and transmitting orders for crypto-assets on behalf of clients;
- providing advice on crypto-assets;
- providing portfolio management on crypto-assets;
- providing transfer services for crypto-assets on behalf of clients.
Generally, from 30 December 2024, the MiCA will require market participants intending to provide crypto-asset services in the EU to obtain prior CASP-license. The provision of crypto-asset services will be subject to the requirements relating to protection of customer assets, governance, management of conflicts of interest and other aspects.
Lithuanian legislation provides a transitional period until 1 July 2025 for existing virtual currency exchange operators and depository virtual currency wallet operators (VASPs) in Lithuania to comply with the MiCA.
Why choose Lithuania as a licensing jurisdiction?
Lithuania has quickly become a prominent hub for fintech companies in Europe in recent years. The country has experienced a significant rise in fintech startups, with numerous established companies moving their operations to Lithuania, attracted by its favorable regulatory framework and a highly skilled workforce in technology and financial services.
Lithuania is well-positioned to become a hub for Web3 technologies. Although regulations have become more stringent since 2023, Lithuania continues to maintain a significant presence of VASPs and remains an appealing location for setting up Web3-related businesses.
How can we help?
Our team is ready to help existing and new crypto market participants to prepare for the implementation of the requirements related to the MiCA and to initiate the communication with the Bank of Lithuania, which shall be granting MiCA licenses and carrying out supervision in Lithuania.
Do you have any questions? Please contact us!
Tel.: +370 6303 1178
E-mail.: info@vklegal.lt
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