BankMyCapital

Crypto & Web3 · Licensing

EU market access under MiCA, sequenced so the banking held

01Situation

A crypto exchange operating outside the EU wanted to serve EU customers lawfully, which under MiCA means a Crypto-Asset Service Provider authorisation. The founder understood the licence was required; what was unclear was which EU jurisdiction to authorise in, and the wrong answer there is expensive to undo.

The trap the operator wanted to avoid is common: authorise in whichever member state grants a CASP fastest and cheapest, then discover the settlement banking for that jurisdiction is hard, and end up authorised but unable to actually move money.

What was actually broken
02Diagnosis

The binding constraint on a MiCA build is rarely the authorisation itself. It is whether the banking partners a CASP needs will accept an entity licensed in that particular member state. Several operators choose a jurisdiction on approval speed and then spend longer, and more, solving a banking problem they created at the licensing stage.

The capital tier, the MLRO appointment, and the local-substance requirements also had to match the specific services the exchange intended to offer, because a CASP scoped to the wrong service set is a slower, costlier correction after the fact than getting it right before filing.

The route we placed
03Mechanism

Jurisdiction and structure type only. We never name the institutions involved.

  • 1

    We advised on the CASP jurisdiction by banking recognition first, choosing a member state whose authorisation the exchange's prospective banking partners accept without additional friction, rather than the fastest headline approval.

  • 2

    We sequenced the capital, MLRO and local-substance requirements to the CASP tier for the exact services the exchange would offer, so the authorisation matched the business rather than a generic template.

  • 3

    We prepared the banking application in parallel with the final stage of authorisation, so an account could open in the weeks after the licence was granted rather than starting the search from zero once the CASP was in hand.

Week by week
04Timeline

Jurisdiction chosen for banking, authorisation and banking sequenced to land together.

Weeks 1-2

Jurisdiction and scope call

Compared CASP jurisdictions on banking recognition, not just approval speed, and scoped the authorisation to the exact services the exchange would offer.

Weeks 3-10

CASP application managed

Filed and managed the CASP application, with capital, MLRO and local substance sequenced to the chosen tier.

Weeks 9-11

Banking pre-application

Prepared the settlement-banking pack in parallel with the final authorisation stage, so the file was ready the moment the licence was granted.

Post-grant, weeks 1-4

Banked and passporting live

Opened EU settlement banking within four weeks of authorisation and passported services across the EU on the CASP.

05Outcome
Prior applications
None, advised before filing
EU market access
MiCA CASP, passported across the EU
Time to banked, post-grant
4 weeks
Wasted licensing cost
None, jurisdiction chosen for banking upfront
07Your case

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01

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02

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03

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