What is the transitional period, i.e. how long does a market participant have until they need to be either authorised or cease providing services.
Austria
In Austria, the transitional period lasts 12 months and applies to Virtual Asset Service Providers (VASPs) registered with the FMA for anti-money laundering (AML) purposes before 30 December 2024. These entities may continue providing services until 30 December 2025, or until they are either authorised or denied authorisation as CASPs under MiCAR. However, there is no transitional period for financial advisors providing cryptocurrency-related services.
Croatia
VASPs registered with HANFA for anti-money laundering (AML) purposes have an additional transitional period of 18 months and may continue providing services until 1 July 2026. By this date, they must obtain a MiCAR licence. No such transitional period applies to any other entities.
Czech Republic
According to the MiCAR implementation act, the transitional period will apply to VASPs holding or acquiring the relevant Czech trade licence by 30 December 2024.
This licence will remain valid until 31 July 2025, unless the relevant VASP applies for a MiCAR licence by that date. In such a case, the VASP can continue operating under its trade licence until a decision on the new licence is issued, but no later than 1 July 2026.
France
Crypto-asset service providers who can demonstrate that they were providing services in compliance with applicable national law before 30 December 2024 may continue operating for a maximum of 18 months, until 1 July 2026. This provision applies until they are either granted or refused authorisation under MiCAR, whichever occurs first.
Germany
The German legislator is currently preparing the Financial Markets Digitisation Act (Finanzmarktdigitalisierungsgesetz, “FinMadiG”), which includes the Crypto Markets Supervision Act (Kryptomärkteaufsichtsgesetz, “KMAG”). The KMAG will establish transitional provisions. However, due to current political uncertainties, it remains unclear whether the FinMadiG and KMAG will come into effect on time.
Under MiCAR and KMAG, different transitional scenarios apply depending on the existing regulatory status of the entity seeking a licence:
- Entities with authorisation for financial services related to crypto-assets under the current legal framework
According to Article 50 of the latest draft of KMAG, entities with an existing authorisation for financial services related to crypto-assets (e.g., under § 32 KWG, § 15 WpIG, or § 11 ZAG) may benefit from a transitional period and continue their activities related to crypto-assets “under the supervisory legal framework as of 29 December 2024” until 31 December 2025, at the latest. Additionally, these entities may utilise a simplified procedure to obtain a licence under Article 143 (6) MiCAR and Section 50 (3) KMAG.
- Crypto-asset service providers currently unregulated under existing law
Transitional provisions will also apply to crypto-asset service providers currently unregulated under existing law (Article 50 (4) MiCAR). These providers may continue their activities during a transitional period ending no later than 1 July 2026. However, a notification obligation under Article 50 (4) KMAG will apply.
- Entities already supervised by BaFin intending to submit notifications under Article 60 of MiCAR
Entities already supervised by BaFin and authorised to provide crypto-asset services under Article 60 MiCAR—such as CRR credit entities, authorised central securities depositories, investment firms, e-money entities, UCITS management companies, alternative investment fund managers, or authorised market operators of trading platforms—must notify BaFin of the information specified in Article 60 (7) MiCAR at least 40 working days before commencing these services for the first time. Notifications can be submitted once the German MiCAR-AntragsV, a delegated regulation, enters into force.
- Entities currently undergoing an application procedure under the current legal framework for financial services related to crypto-assets
According to BaFin, any pending applications for authorisation must be withdrawn from 30 December 2024, as the authorisation process will then be governed by Article 63 MiCAR. Applications must instead be submitted in accordance with Article 62 MiCAR. Applicants may reference previously submitted information or documentation, provided it remains suitable under MiCAR.
- Entities with a regulated business model currently not licensed
No transitional period is available for entities operating a regulated business model under the current legal framework that have not yet obtained a licence.
Italy
All VASPs duly registered in the OAM register as of 27 December 2024, which apply for authorisation as CASPs under MiCAR by 30 June 2025, in Italy or another Member State, may continue to operate during the authorisation procedure until a decision is issued. In any case, operations must cease no later than 30 December 2025 if authorisation is refused. However, until authorised, they will not be permitted to operate on a cross-border basis.
Entities that do not intend to file an application as a CASP in Italy by 30 June 2025 must cease operations by that date. They will also need to terminate existing contracts and return crypto-assets and funds to their customers in accordance with instructions provided by those customers.
All entities currently registered in the OAM registry must publish on their websites and notify their customers about their plans and measures to comply with MiCAR or to terminate their operations in an orderly manner. These plans and measures must be communicated as soon as they are defined and no later than 31 May 2025. The notification must specify that any activity conducted vis-à-vis customers during the authorisation process or during the termination of operations remains governed by the rules applicable to VASPs concerning reporting duties and AML provisions and is not subject to MiCAR rules.
Luxembourg
Entities currently providing services related to crypto-assets in Luxembourg fall within the regime established by the law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended (the “AML Law”). Under the provisions of the AML Law, VASPs are subject to a registration requirement with the CSSF.
With the application of MiCAR, these entities will benefit from the transitional period set out under Article 143(3) of MiCAR. As a result, VASPs will remain registered under this regime until 1 July 2026 at the latest.
Other service providers not currently registered as VASPs will need to seek authorisation pursuant to MiCAR and will therefore not benefit from these transitional measures.
The Netherlands
The current applicable law in the Netherlands is based on the Act implementing amendments to the Fourth Anti-Money Laundering Directive. This legislation requires crypto service providers – firms facilitating the exchange of virtual currencies (crypto) for money (and vice versa) – and providers of custodian wallets for virtual currencies to register with the Dutch Central Bank (De Nederlandsche Bank, “DNB”).
Under MiCAR, different transitional scenarios apply depending on the existing regulatory status of the entity seeking a licence:
- Entities already supervised by DNB that have obtained registration to provide crypto-services in the Netherlands
In the Netherlands, the transitional period under MiCAR for registered crypto-asset service providers is limited to six months. Providers registered with DNB before 30 December 2024 may continue offering services under the transitional arrangement until 30 June 2025. The transitional period does not apply to entities that fail to secure DNB registration by 30 December 2024. This period may also end earlier if the AFM explicitly rejects a MiCAR application before 30 June 2025.
Market parties can submit CASP licence applications to the AFM from 22 April 2024, and, if approved, licences will become valid from 30 December 2024.
Registered entities that do not intend to file a CASP application in the Netherlands by 30 June 2025 will be required to cease operations by that date, terminate existing contracts, and return crypto-assets and funds to customers in accordance with the customers’ instructions.
- Entities already supervised by the AFM or DNB that intend to submit notifications under Article 60 of MiCAR
Crypto-asset services may also be provided by authorised entities seeking to offer specific crypto-asset services in relation to equivalent services, as specified in Article 60 MiCAR. This includes credit institutions, central securities depositories, investment firms, e-money institutions, UCITS management companies, alternative investment fund managers, and authorised market operators of trading platforms. These entities must notify the regulator of the information required under Article 60 (7) MiCAR at least 40 working days before commencing such services.
Applications for CASP notifications can be submitted to the AFM from 22 April 2024, and, if approved, will take effect from 30 December 2024.
- Entities with a regulated business model that are currently not licensed
No transitional period is available for entities with business models regulated under the existing legal framework that have not yet obtained a licence or registration.
Norway
As of now, Norway has not enacted transitional rules for the MiCAR implementation. However, FSAN has recommended a 12-month transitional period following MiCAR's entry into force.
Poland
The draft Polish law stipulates that the transitional period will end on 30 June 2025. After this date, market participants without authorisation will not be permitted to provide services related to crypto-assets.
However, there is one exception: if a market participant submits a complete application for authorisation before 1 May 2025 and receives the notification referred to in Article 63(4) of MiCAR, they may continue providing services after 30 September 2025, until a possible refusal of authorisation.
Slovenia
Slovenia has introduced a six-month transitional period, allowing VASPs registered under local AML legislation (aligned with the Fifth EU Anti-Money Laundering Directive) as of 30 December 2024 to continue providing services until 1 July 2025, or until their MiCAR authorisation application is either approved or rejected.
Spain
In Spain, the transitional period lasts 12 months and applies to VASPs registered with the Bank of Spain before 30 December 2024 for AML purposes. These entities may continue providing services until December 2025, or until their authorisation as a CASP under MiCAR is granted or refused.
How long does it take to establish a local entity required to apply for a MiCAR authorisation? Is the transitional period sufficient?
Austria
Establishing a local entity and obtaining MiCAR authorisation requires significant preparation. Factors such as securing a bank account, establishing a local presence, and acquiring relevant talent must be considered alongside compliance with MiCAR's rigorous requirements.
Key considerations:
- Documentation and business model submission: Applicants must provide detailed information about their business model, organisational structure, and operational processes. The complexity of these submissions often determines the duration of the review.
- Typical authorisation timeline:
- Application acknowledgment: 5 business days from submission.
- Completeness check: 25 business days for document review.
- Request for additional documents: If incomplete, the FMA may extend the timeline, granting a specified deadline for corrections.
- Final assessment: Once all documents are deemed complete, the FMA completes its evaluation within 40 – 60 business days.
- Decision communication: Issued within 5 business days of the final decision.
In total, the process can take several months, depending on the quality of the submission, the complexity of the entity's structure, and any modifications required by the FMA.
- Feasibility of the transitional period: The 12-month transitional period may suffice for entities with well-prepared applications and strong compliance mechanisms. However, new entrants or those requiring significant structural adjustments may find this timeline challenging due to the FMA’s comprehensive review process and the complexity of MiCAR requirements.
Additionally, there is no transitional period for financial advisors providing cryptocurrency-related advice. It is unlikely they will complete the required registration process by 30 December 2024, given the regulatory changes and the time needed to prepare and submit compliant applications.
Croatia
The transitional period applies exclusively to VASPs already registered with HANFA. These entities must apply for and obtain a MiCAR licence by no later than 1 July 2026.
Entities that are not registered VASPs will need to establish a Croatian company and obtain a MiCAR licence before they can start providing services. Establishing a company in Croatia may take up to 8 weeks.
The timelines for HANFA’s response to received applications are set by MiCAR:
- HANFA must confirm receipt of the application within 5 business days.
- HANFA must assess the completeness of the application within 25 business days and set an additional period for submitting any missing information.
- Once the application is considered complete, HANFA must inform the applicant.
- HANFA must make a decision on the application within 40 business days from the date the application is deemed complete.
However, the time required for a specific company to ensure compliance with MiCAR requirements and set up its business to be eligible for a MiCAR licence will depend heavily on the business setup and systems already in place prior to commencing preparations for the licence application. This must be assessed on a case-by-case basis.
Czech Republic
To apply for the transitional period, a new entity must be established and hold the relevant trade licence by 30 December 2024. Establishing a new entity and acquiring such a licence may take 3–4 weeks, so it may be more practical to either purchase a ready-made entity and obtain the licence or acquire a licensed Czech VASP.
The 7-month transitional period appears sufficient, but as there are no specific guidelines for authorisation (apart from MiCAR and the related draft RTS), it is recommended to begin preparatory work for the licence as soon as practicable.
France
Establishing an operational corporate entity is typically a swift process, usually taking a couple of weeks, subject to corporate registration timelines. Given France's prominence in the cryptocurrency sector and its active regulatory environment, the transitional period should be sufficient. However, processing times will depend on the specific activities the entity intends to undertake.
The timeframe for registration as a CASP ranges between 6 and 10 months. This duration may be shorter for entities already registered under the previous French legal regime, as they can benefit from a simplified procedure designed to facilitate the examination of MiCA authorisation applications, thereby reducing processing times.
Germany
The overall timeframe largely depends on the nature and scope of the intended business activity. Generally, an operational entity can be established in under 24 hours by using a shelf company (Vorratsgesellschaft) – a pre-registered, fully operational company ready for immediate use.
Additional steps, such as recruiting local talent or compiling the detailed information required for the application (e.g., business model, organisational structure, operational processes, etc.), will vary based on the specific activity.
Given Germany's position as one of Europe's leading crypto hubs, navigating these processes may be more straightforward compared to other jurisdictions.
If a transitional period applies, its sufficiency will depend on the nature and scope of the intended business activity and whether the time provided is adequate to obtain a licence.
Italy
For setting up a local entity, the transitional period is expected to be sufficient.
In terms of timing, these are the steps required to establish an Italian limited liability company (società a responsabilità limitata or S.r.l.):
- The founding shareholder(s) must have or obtain an Italian fiscal code.
- An Italian bank account must be opened in the name of the NewCo, where the share capital must be deposited before the incorporation date. This is an interim bank account, and all funds paid into it must be transferred to the final bank account of the NewCo. Opening a bank account can be a complex process, though it is expected to become more routine following the implementation of MiCAR and the associated prudential requirements (although evidence of this trend is yet to emerge).
- A certified e-mail (PEC) for the NewCo must be created, a straightforward process that can be completed once the fiscal codes have been obtained.
On the incorporation date, the proxy-holder of the founding shareholder must execute the incorporation deed before an Italian notary, who will then complete the following activities:- Registration of the NewCo at the competent Companies’ Register (corresponding to the location of the company's seat, potentially through a domiciliation office);
- Requesting the tax code and VAT number;
- Setting up the corporate books and paying the associated minor taxes;
- Filing the declaration of starting of activity (dichiarazione inizio attività) with the Companies’ Register.
Further activities following incorporation include requesting a smart card for filing documents with the Companies’ Register and enrolling at INPS (social security).
All these steps can typically be completed within a couple of weeks, provided the corporate documents (e.g., bylaws) are finalised. However, the licence application itself may require at least 3–4 months.
Luxembourg
The timeframe for setting up a crypto-asset business can only be assessed on a case-by-case basis. Based on the process applicable to other types of regulated entities, a timeframe of 10–18 months should be envisaged to obtain authorisation under MiCAR (for CASPs). The transitional period should therefore be sufficient in this respect.
Players already registered with the CSSF may expect shorter timeframes, as they are already known to the CSSF and familiar with the market. These entities should benefit from the fact that they are already supervised by the CSSF.
New players, however, may face longer assessment periods, depending on factors such as whether they are part of a regulated group, their proven track record in carrying out the envisaged business, and other relevant considerations.
The Netherlands
Establishing a local entity and obtaining MiCAR authorisation requires significant preparation. Factors such as securing a bank account, ensuring local presence and substance, and complying with MiCAR's requirements must be carefully considered.
Key considerations:
- Establishing an entity: Incorporating an entity in the Netherlands is relatively straightforward and can typically be completed within one business day.
- Documentation and business model submission: Applicants must provide detailed information about their business model, organisational structure, and operational processes. The complexity of these submissions often determines the duration of the review. Applicants must submit the licence application to the AFM and an application for a declaration of non-objection to the DNB. Preparing an application generally takes 2–3 months, depending on its complexity and the availability of required documentation.
- Expected timeline: The AFM has indicated that the turnaround time for a MiCAR licence application is at least five months, provided all information is complete. On average, it takes around five to nine months from submission to receive a decision on authorisation, depending on the quality of the application and the complexity of the business model and operations.
Typical application timeline:
- The AFM acknowledges receipt of the licence application within 5 working days.
- The AFM conducts an initial completeness check. The statutory period for submitting a complete application begins (25 working days).
- The AFM requests any missing information, setting a deadline to supply it (5–20 working days). Applications that remain incomplete after this deadline may be refused.
- The AFM notifies the applicant that the application is complete, starting the statutory assessment period (40 working days).
- Within a maximum of 20 working days, the AFM may request further information needed to complete the assessment.
- The AFM makes a decision (granting or refusing the licence) and notifies the applicant within 5 working days.
The total statutory period is a maximum of approximately 5 months (105 working days). However, this timeframe is often extended due to factors such as additional changes requested from the applicant.
Norway
The transitional period under MiCAR applies exclusively to entities legally providing crypto-asset services at the time of the regulation's entry into force. The anticipated 12-month transitional period is expected to be sufficient for existing operators to adapt their organisations and apply for the necessary licences. For new entrants considering the Norwegian market, obtaining a licence in another EU country and utilising a branch or services passporting solution should be considered.
Poland
The time required to establish a local entity necessary for applying for a MiCAR authorisation depends, among other factors, on the type of legal form selected for the business.
For instance, the most popular form of business, a limited liability company, can typically be established within 6–8 weeks, provided all the necessary documents have been collected. This process involves various procedural steps, such as preparing and submitting the required documents to the National Court Register (KRS). However, precise timeframes can be challenging to estimate due to variability in court processing times and KYC procedures required by banks to open a business bank account.
Alternatively, it is possible to acquire an existing entity, such as a limited liability company, from shelf company providers. This approach is somewhat faster, taking approximately 4–5 weeks.
We would generally assume that the transitional period is sufficient for these purposes. However, this will depend on when the process of establishing a local entity begins.
Slovenia
A limited liability company can be incorporated within 5–8 working days, provided all the necessary documents have been collected. The timing and feasibility of opening a bank account (required for depositing the initial share capital) depend on the ownership structure. If beneficial ownership can be easily established, the account can typically be opened within 5–10 working days.
The actual timeframe for obtaining a licence depends on which of the nine distinct CASP licences under MiCAR is being applied for. In principle, the Securities Market Agency has a total of 70 working days (completeness check + substantive assessment) to decide on the application.
Registering as a VASP with the Office of the Republic of Slovenia for the Prevention of Money Laundering usually takes 1–2 weeks and will remain open until 30 December 2024.
As part of submitting a Programme of operations in the application for a MiCAR authorisation, applicants must provide a detailed description of the human, financial, and ICT resources allocated to the intended crypto-asset services, including their geographical location. While not explicitly stated, it is likely that at least some key functions will need to be provided locally. However, no specific guidance or opinions have yet been issued by the Securities Market Agency.
Spain
The timeline for obtaining a CASP licence in Spain varies based on the specific activities intended and other factors, necessitating a case-by-case assessment. As of December 2024, the CNMV has not yet commenced granting these authorisations; therefore, there is no prior experience to provide a reliable time estimate.
Entities registered with the Bank of Spain have encountered practical challenges in opening bank accounts for client transactions related to crypto-assets. Despite these hurdles, the 12-month transitional period is expected to be sufficient for these entities to develop their activities.
For information on MiCAR authorisations: regulators and readiness, click here.
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