The Markets in Crypto-Assets Regulation (MiCA) introduces a new licensing framework for companies that offer crypto-asset services in the European Union. Before MiCA, many companies in Europe operated as VASPs (Virtual Asset Service Providers) under national laws. Under the new regulation, these companies will be required to operate as CASPs (Crypto-Asset Service Providers) and obtain authorization under MiCA.

To support this transition, MiCA allows a grandfathering period. It applies to companies that were already providing crypto-asset services before 30 December 2024. During this period, they may continue operating under their national rules while preparing to obtain a MiCA license. The longest possible grandfathering period lasts until 1 July 2026. However, some countries have chosen shorter deadlines. After the national deadline, a company must hold a MiCA license to continue operating in that country.

MiCA gives each country the ability to set its own end-date for the transitional period. Some jurisdictions keep the full period, while others shorten it based on differences between their national rules and the new framework. This is why grandfathering deadlines differ across Europe.

If a company provides services in more than one country, it must follow the transitional deadline of each country where it operates. When deadlines are not the same, the company must follow the earliest one.

Grandfathering deadlines by effective date

When the grandfathering period ends, only authorized CASPs will be able to operate under MiCA. This also affects companies that rely on crypto-related service providers for digital banking, online payments, and business payment solutions.

Paylar closely cooperates with CASPs and VASPs that have already submitted their licensing documentation under the MiCA regulation. Paylar provides IBAN accounts and handles incoming and outgoing payments for crypto-related companies.

As the national deadlines approach, the European market is moving from national rules to one harmonized regulatory standard. This change creates a clearer environment for authorized CASPs and for financial service providers that work with them.