MiCA Regulation And CASP License Guide: Italy & Luxembourg

What is the MiCA Rule in crypto?

The MiCA Rule – Regulation (EU) 2023/1114 (Markets in Crypto-Assets Regulation) is the European legal framework governing the crypto-assets market within the European Union.

MiCA applies to individuals, legal entities, and other undertakings involved in the issuance, public offering, admission to trading of crypto-assets, or the provision of crypto-related services within the EU.

One of the main objectives of the MiCA Rule is to establish a harmonized regulatory framework for crypto-assets and crypto services across the European Union, ensuring greater protection for investors and consumers. The regulation aims to increase transparency in the cryptocurrency market, provide access to clear and complete information, and introduce effective complaint-handling and dispute-resolution procedures.

MiCA establishes licensing rules and regulatory requirements for crypto-asset service providers operating within the European Economic Area (EEA) and introduces a single authorization regime for the so-called CASPs (Crypto-Asset Service Providers), namely entities providing professional cryptocurrency services.

Which crypto is MiCA compliant?

MiCA applies to three categories of crypto-assets:

- Electronic Money Tokens (EMTs): Crypto-assets designed to maintain a stable value by referencing only one official currency (such as EUR, USD, or GBP) and intended to function as a digital means of payment.

EMTs may only be issued by authorized entities, namely:

• credit institutions;
• electronic money institutions authorized under Directive 2009/110/EC (EMD2).

- Asset-Referenced Tokens (ARTs): Crypto-assets intended to maintain a stable value by referencing another value, right, or a combination thereof, including one or more fiat currencies.

- Other Crypto-Assets: Crypto-assets that do not qualify as EMTs or ARTs.

Which type of crypto projects are excluded from MiCA?

The following crypto projectsare excluded from MiCA:

- Unique and Non-Fungible Crypto-Assets (NFTs)

These crypto-assets are not easily interchangeable and their value cannot easily be compared to equivalent assets or markets.

- Non-transferable bound tokens

- Crypto-assets already regulated under existing financial legislation

This includes crypto-assets qualifying as financial instruments under MiFID.

CASP: Who are Crypto Asset Service Providers?

CASPs (Crypto-Asset Service Providers) are intermediaries operating within the crypto-assets market.

A CASP intending to provide services in more than one EU Member State must submit the following information to the competent authority of its home Member State (in Italy: Consob or the Bank of Italy):

• a list of Member States where services will be provided;
• the crypto services intended to be offered cross-border;
• the expected start date of the services;
• any additional activities carried out outside the scope of MiCA.

Once authorized, CASPs may operate throughout all 27 EU Member States through the European passporting system.

Why is Luxembourg so popular for Crypto-Asset Investment?

Luxembourg is considered one of the most advanced European jurisdictions in the crypto-assets, blockchain, and fintech sectors.

The Luxembourg supervisory authority, the CSSF (Commission de Surveillance du Secteur Financier), is responsible for the authorization and supervision of CASPs under MiCA.

The main advantages of Luxembourg include:

• strong international financial reputation;
• clear regulatory framework;
• access to the EU market through passporting;
• fintech-friendly ecosystem;
• legal and tax stability;
• strong compliance culture.

Many crypto companies are choosing Luxembourg as their European base in order to obtain a MiCA license valid across the entire European Union.

Coinbase and Luxembourg: Is Coinbase MiCA regulated?

In 2025, Coinbase obtained a MiCA license in Luxembourg through authorization by the CSSF, selecting the Grand Duchy as its European crypto hub.

This development confirmed Luxembourg’s strategic role in the regulated cryptocurrency sector.

More recently, B2C2 also obtained a CASP license, becoming the first over-the-counter liquidity provider in the world to receive this authorization under the MiCA framework.

How to register a CASP License in Luxembourg

Companies seeking recognition as a CASP (Crypto-Asset Service Provider) in Luxembourg must strictly comply with the regulatory framework established by the MiCA Regulation.

The authorization process includes several steps:

1. Company Incorporation

The applicant must establish a legal entity in Luxembourg and obtain a company registration number. This preliminary phase includes compliance with MiCA obligations, CSSF registration, and tax requirements.

2. Registration With the CSSF

Once incorporated, the company must apply for CASP registration with the CSSF. The authority verifies compliance with MiCA standards regarding transparency, security, and reliability of crypto services.

3. MiCA Compliance and Licensing

Compliance with MiCA requirements is essential. Once the compliance process is completed, the CSSF may issue a MiCA license authorizing the CASP to operate legally in Luxembourg and throughout the EU.

4. Ongoing Compliance and Reporting Obligations

Registration is not the final step. CASPs must maintain accurate financial records, submit periodic reports to the CSSF, and continuously monitor regulatory developments to ensure ongoing compliance.

Arnone & Sicomo – Cryptocurrency & Digital Assets Lawyers in Italy and Luxembourg

Arnone & Sicomo provides legal assistance for companies seeking authorization as CASPs (Crypto-Asset Service Providers) in Italy and Luxembourg.

Operating within the regulated crypto sector requires tailored compliance strategies and careful adherence to the MiCA Rule in order to position a company as a credible and compliant market operator.

Given the complexity of the blockchain and crypto-assets industry, it is essential to rely on experienced crypto lawyers capable of managing interactions with regulatory authorities, including:

• the CSSF in Luxembourg;
• Consob and the Bank of Italy in Italy.

Our international law firm offers end-to-end legal assistance for obtaining a CASP license.

The firm works with highly qualified professionals in international finance, blockchain, and digital financial markets, including Dr. Fabrizio Dicembre, who has extensive experience in international financial markets and innovative investment instruments.

Our professionals assist Italian and international clients with:

• crypto due diligence;
• AML/KYC compliance procedures;
• tokenized financial instruments;
• crypto investment funds;
• fintech projects in Luxembourg.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.