Roadmap to Markets in Crypto-Assets (MiCA) Regulation in 2026

1. From Fiat to Crypto – Understanding the Asset Spectrum

Understanding MiCA begins with distinguishing between fiat currencies, digital assets and crypto-assets.

A fiat currency is legally established as legal tender and is issued by a central bank or another monetary authority with the legal power to issue banknotes or coins. Digital assets, by comparison, cover assets that can be issued or transferred using Distributed Ledger Technology, such as blockchain. Digital assets can take several forms, including crypto-assets, stablecoins, non-fungible tokens, central bank digital currencies, security tokens and utility tokens.

MiCA defines a crypto-asset as a digital representation of a value or right that can be transferred and stored electronically using DLT or similar technology. Under the Regulation, crypto-assets are broadly divided into three principal categories:

• Electronic Money Tokens (EMTs), such as EURC, which reference a single fiat currency.
• Asset-Referenced Tokens (ARTs), such as gold-backed tokens or currency baskets.
• Other crypto-assets, including utility tokens and cryptocurrencies and other crypto-assets like BNB or ETH that are neither EMTs nor ARTs.

Importantly, MiCA does not apply to security tokens, which fall under MiFID II, or to non-fungible tokens (NFTs) and CBDCs. Understanding these definitions is the first step in correctly scoping your regulatory obligations under MiCA.

2. Authorisation Requirements for CASP

One of the central features of MiCA is the creation of a harmonized licensing framework for Crypto-Asset Service Providers (CASPs) throughout the European Union. Businesses providing crypto-asset services in the EU will generally need to obtain authorization from the relevant National Competent Authority (NCA), such as CySEC in Cyprus.

To qualify for authorization, a CASP must generally:

• Be established as a legal entity within the EU, with its registered office and effective management located in an EU Member State.
• Have appropriate governance arrangements, including qualified and suitable senior management and effective internal controls.
• Maintain adequate capital resources, with the applicable minimum generally ranging from EUR 50,000 to EUR 150,000, depending on the services offered.

A significant advantage of MiCA authorization is the ability to use passporting rights. Once authorized in one EU Member State, a CASP can provide its authorized services throughout the EU without needing to establish a separate physical presence in every host country. Cross-border notifications are coordinated through the home NCA and ESMA.

This creates a more scalable regulatory environment for businesses providing services such as crypto-asset exchanges, trading platforms, custody, and investment or crypto-asset-related advice across multiple EU jurisdictions.

For tailored guidance or support with your MiCA compliance strategy, contact the SALVUS team, at info@salvusfunds.com.

3. Issuance Rules and the White Paper Obligation

MiCA introduces specific transparency requirements for businesses seeking to issue crypto-assets or have them admitted to trading. In many cases, issuers of crypto-assets must prepare and publish a white paper, subject to the specific rules applicable to the relevant type of token.

The white paper is expected to provide comprehensive information, including:

• Information concerning the issuer and the offeror.
• An explanation of the crypto-asset project and its purpose.
• The rights and obligations associated with the crypto-asset.
• Details concerning the technology used and the risks associated with the project and token.

For certain crypto-assets other than EMTs and ARTs, the white paper generally does not require prior regulatory approval. Instead, it must be notified to the relevant authority and made publicly available within the prescribed timeframe before the offering takes place. EMTs and ARTs are subject to more stringent requirements, including authorization and approval of their respective white papers.

The documentation must also clearly warn potential investors that crypto-assets can lose some or all of their value, may not always be readily transferable or liquid, and generally do not benefit from traditional deposit guarantee or investor compensation schemes.

These disclosure requirements are intended to improve transparency and ensure that investors receive meaningful and standardized information before deciding to participate in a crypto-asset offering.

4. Lessons from FTX: Why MiCA Matters

MiCA is not simply a licensing regime. Its governance, prudential, safeguarding and conflicts-of-interest provisions respond to risks that have historically affected crypto-asset markets.

The course uses the collapse of FTX as a case study illustrating the consequences of weak governance, poor risk management, insufficient segregation of client assets and conflicts of interest.

Among the deficiencies examined are inadequate competence at senior-management level, weak risk-management practices, insufficient transparency and reserves, inadequate safekeeping arrangements and extensive conflicts between FTX and Alameda Research.

MiCA addresses these areas through requirements governing management suitability, internal controls, risk-management arrangements and client-asset segregation. The course materials highlight that CASP authorization requires management body members to demonstrate appropriate knowledge, skills, experience and reputation, while applicants must maintain procedures for identifying, assessing and managing risks.

Safeguarding is another central requirement. CASPs holding clients’ crypto-assets must establish arrangements protecting client ownership rights, including in the event of insolvency, and preventing client crypto-assets from being used for the CASP’s own account.

These requirements illustrate why MiCA is important beyond formal authorization. Its purpose is also to create an operational framework in which governance, transparency, financial resilience, client protection and accountability form part of the CASP’s continuing obligations.

5. AML alignment and the Transfer of Funds Regulation (TFR)

MiCA is not a standalone regulatory framework. It forms part of the EU’s wider approach to crypto-asset regulation, working alongside the AML Regulation (EU) 2024/1624 and the Transfer of Funds Regulation (TFR).

The main implications are:

• CASPs now fall within the EU AML framework as obliged entities. They must apply risk-based customer due diligence (CDD), enhanced due diligence (EDD) when dealing with high-risk jurisdictions, and maintain appropriate beneficial ownership records.
• The TFR introduces the Travel Rule, requiring CASPs to collect, trace, and make available information on the originator and beneficiary of crypto-asset transfers. This also applies to transfers involving self-hosted wallets exceeding EUR 1,000.
• The EU Anti-Money Laundering Authority (AMLA) will oversee high-risk entities and help ensure that AML/CFT requirements are applied consistently across EU Member States

In Cyprus, CySEC Circular C640 supports the implementation of EBA guidelines in the context of MiCA and provides sector-specific direction covering areas such as:

• Anonymity-enhancing products and services,
• Self-hosted wallets,
• Transaction monitoring and risk-based analytics.

SALVUS supports clients throughout the compliance process, including AML policy development, transaction monitoring frameworks, and AML training, helping businesses achieve comprehensive compliance with both MiCA and the broader EU AML regime.

Conclusion

For CASPs seeking authorization and projects preparing to issue tokens, MiCA compliance is no longer optional. While the Regulation provides greater regulatory clarity, it also introduces a higher level of oversight and scrutiny into one of the financial sector’s fastest-growing areas.

At SALVUS, our services include:

• Assistance with preparing and submitting CASP authorization applications;
• Support with the preparation of MiCA-compliant white papers;
• Alignment of business models with governance, compliance, and AML requirements;
• Practical compliance training for internal teams.

For a deeper understanding of these requirements, the CPD-accredited IforPE course: Roadmap to Markets in Crypto-Assets (MiCA) Regulation in 2026 is a useful resource. Delivered by Nikolas Xenofontos, the course combines detailed regulatory guidance with practical insights and real-world case studies, making it relevant to lawyers, compliance professionals, and crypto-sector founders.

For tailored guidance or support with your MiCA authorization, AML/CFT framework or regulatory compliance strategy, contact the SALVUS team at info@salvusfunds.com.

The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.