MiCA Decoded: Thinking a CASP License Covers Payments, Perps or Futures is a Major Mistake

MiCA Decoded is simply a 12-article play bid for Bitcoin.com News, co-authored by LegalBison’s Co-Founding and Managing Directors: Aaron Glauberman, Viktor Juskin and Sabir Alijev. LegalBison advises crypto and FinTech companies connected MiCA licensing, CASP and VASP applications, and regulatory structuring crossed Europe and beyond.

There is simply a mentation of the MiCA authorization process that founders speech astir arsenic if it ends the infinitesimal the licence arrives. Apply, wait, get authorized, run successful the EU. The licence is the decorativeness line.

That framing misreads what MiCA really authorizes. A Crypto-Asset Service Provider (CASP) licence grants support to supply circumstantial crypto-asset services, defined successful item successful the regulation. It does not assistance support to run a outgo institution, contented physics money, oregon tally a derivatives trading venue. Those activities beryllium nether wholly antithetic regulatory frameworks. And for galore platforms whose commercialized exemplary depends connected astatine slightest 1 of them, the MiCA license unsocial leaves a spread that is operationally important and, if ignored, legally serious.

This tenth installment of MiCA Decoded maps that spread precisely, work by service.

The Myth: MiCA Covers the Full Stack of What a Crypto Exchange Does

The presumption is understandable. MiCA is comprehensive. It covers 10 categories of crypto-asset services. Its scope extends to custody, exchange, execution, routing, advice, and portfolio management. For astir retail crypto platforms, that covers a important information of their business.

But “substantial” and “complete” are antithetic things. The platforms astir apt to observe a important quality are not marginal operators. They are the ones moving derivative products, enabling crypto-funded paper payments, offering leveraged perpetual positions, oregon hosting prediction markets. These prediction markets person go a large inclination for centralized exchanges (CEXes), yet they beryllium astatine a regulatory bound that MiCA does not cross. Instead, they often autumn nether section iGaming regulatory frameworks. These are commercially important merchandise lines astatine large exchanges, and each 1 operates extracurricular MiCA’s scope.

The regularisation is circumstantial astir what it governs. Article 2(4) of MiCA explicitly excludes from its scope crypto-assets that suffice arsenic fiscal instruments nether Directive 2014/65/EU (MiFID II), deposits, funds arsenic defined nether the Payment Services Directive 2 (PSD2), and securitisation positions. These exclusions are not method footnotes. They specify the perimeter of MiCA’s authority. Anything falling connected the different broadside of that perimeter requires authorization nether a antithetic model entirely.

Where the CASP License Stops

Payment Services

MiCA authorizes the transportation of crypto-assets connected behalf of clients, defined in Article 3(1)(26) arsenic “providing services of transfer, connected behalf of a earthy oregon ineligible person, of crypto-assets from 1 distributed ledger code oregon relationship to another.” This is simply a crypto-native transportation service. It is not a outgo work successful the PSD2 sense.

The favoritism matters enormously for platforms that privation to connection crypto-funded paper programs, fiat on/off-ramp integrations, nonstop slope transfers, oregon merchant outgo acceptance successful euros oregon different authoritative currencies. Article 2(4)(c) excludes “funds” arsenic defined successful PSD2 from MiCA’s scope, but wherever they suffice arsenic e-money tokens.

A level that receives fiat oregon e-money tokens (EMTs) from a user, holds them, and transmits them determination is operating a outgo service. This requires either a outgo instauration licence oregon an Electronic Money Institution (EMI) licence nether Directive (EU) 2015/2366 (PSD2), alternatively than conscionable a Crypto-Asset Service Provider (CASP) authorization. Because EMTs are legally deemed to beryllium physics money, CASP transportation services bash not screen EMTs unless the enactment falls nether the “intermediation” exclusion.

A non-EMI CASP tin transmit orders for EMTs lone if the transaction stays wrong the CASP’s interior ecosystem oregon wrong a custodial relationship managed by an authorized licensed partner. If a work involves transmitting an bid that triggers the transportation of an EMT to a third-party wallet oregon a backstage ledger, it constitutes the execution of a outgo transaction oregon a wealth remittance work nether PSD2/PSD3. Any CASP facilitating these outer transfers aft March 2026 indispensable person its ain EMI/PI licence oregon usage a licensed agent.

MiCA itself acknowledges this boundary. Article 70(4) states that crypto-asset work providers whitethorn themselves oregon done a 3rd enactment supply outgo services related to their crypto-asset service, but lone wherever the supplier oregon the 3rd enactment is authorized to supply those services nether PSD2. The regularisation does not assistance outgo services capableness done the backmost door. It requires that the capableness beryllium independently authorized.

For an speech that wants to fto users apical up via SEPA transfer, settee redemptions successful euros, oregon contented a branded debit card, a CASP licence is simply a indispensable portion of the structure. It is not sufficient.

Perpetuals and Futures

This is wherever the vulnerability tends to beryllium sharpest for derivative-first platforms.

MiCA’s scope is defined astir “crypto-assets,” which are integer representations of worth oregon rights that tin beryllium transferred utilizing distributed ledger technology. The regularisation covers the services built astir those assets: custody, trading connected spot markets, exchange, execution of orders arsenic good arsenic routing of orders arsenic a axenic intermediary. What it does not screen is fiscal derivatives wherever the crypto-asset is the underlying instrumentality alternatively than the happening being traded.

Article 2(4)(a) removes from MiCA’s scope immoderate crypto-asset that qualifies arsenic a fiscal instrumentality nether MiFID II. A perpetual futures declaration connected BTC/USD is not a crypto-asset. It is simply a derivative. It whitethorn settee successful cryptocurrency, but the instrumentality itself, the contractual assertion representing a leveraged presumption connected the terms of Bitcoin, is simply a fiscal instrumentality successful the MiFID II sense. Operating a venue that allows EU clients to commercialized specified instruments requires an concern steadfast authorization nether MiFID II, oregon astatine minimum a trading venue authorization depending connected the structure, not a CASP license.

Recital 97 of MiCA addresses this directly, noting that derivatives qualifying arsenic fiscal instruments nether MiFID II and whose underlying plus is simply a crypto-asset are taxable to Regulation 596/2014 (the Market Abuse Regulation), not to MiCA. The marketplace maltreatment provisions inactive scope the underlying crypto-asset. But the authorization model for the derivative merchandise itself sits nether MiFID II.

Some exchanges effort to operation perpetuals arsenic crypto-to- crypto swap arrangements that they qualify arsenic speech services alternatively than derivatives. Regulators are acquainted with this framing, and the classification question is yet 1 of substance implicit form. An instrumentality with leverage, a backing rate, and nary transportation of the underlying plus is apt to look scrutiny arsenic a derivative careless of however it is labeled. The ineligible hazard of getting this incorrect is the proviso of fiscal services without authorization.

Futures Contracts

The aforesaid investigation applies to dated futures. A futures declaration obliging a counterparty to bargain oregon merchantability an plus astatine a predetermined terms connected a aboriginal day is simply a fiscal instrumentality nether MiFID II, specifically wrong the definitions covering derivatives connected commodities, currencies, and different underlyings. Cryptocurrency futures, adjacent wherever physically settled successful BTC oregon ETH, are treated arsenic fiscal instruments erstwhile they are traded connected a multilateral basis.

Operating a trading level for specified instruments requires authorization arsenic a regulated market, multilateral trading installation (MTF), oregon organized trading installation (OTF) nether MiFID II. CASP authorization covers the cognition of a trading level for crypto-assets nether Article 76 of MiCA, which defines a trading level arsenic a multilateral strategy bringing unneurotic aggregate third-party purchasing and selling interests successful crypto-assets, not derivatives connected crypto-assets.

In applicable terms, this means the CASP provides a venue wherever clients conscionable and commercialized with each different nether wide operating rules defined and maintained by the CASP itself. The level relation pools and matches lawsuit orders to facilitate terms find alternatively than mounting prices. The CASP does not instrumentality marketplace risk, publication trades connected its ain sheet, oregon woody connected its ain account. The lone objection is matched main trading, which the relation whitethorn prosecute successful strictly with explicit lawsuit consent and monitoring by the competent authority.

Both frameworks enforce strict limits connected permitted trading models. Under MiFID II, multilateral trading facilities (MTFs) are wholly banned from executing lawsuit orders against proprietary superior oregon engaging successful matched main trading. Organized trading facilities (OTFs) are permitted to enactment arsenic matched principals for circumstantial instruments, specified arsenic bonds, structured concern products, emanation allowances, and definite derivatives, but lone with explicit lawsuit consent.

MiCA establishes akin restrictions for crypto-assets. Crypto-asset work providers cannot woody connected their ain relationship connected the trading platforms they operate. MiCA allows matched main trading arsenic an exception, but lone wherever the lawsuit has consented to the process. The supplier indispensable proviso the competent authorization with accusation explaining its usage of matched main trading. The competent authorization past monitors the engagement to verify it continues to autumn wrong the strict explanation of matched main trading and does not springiness emergence to conflicts of involvement betwixt the supplier and its clients.

Bitstamp, which holds MiCA authorization successful Luxembourg nether the Commission de Surveillance du Secteur Financier (CSSF), besides holds a MiFID licence permitting it to run an MTF. That dual licensing operation is not an accident. It reflects the existent scope of the activity.

Why Operators Miss This

Several factors nutrient the misunderstanding.

First, the applicable effect of pre-MiCA nationalist VASP regimes varied importantly by jurisdiction and implicit time. While aboriginal registrations successful immoderate countries mightiness person initially operated arsenic a permissive baseline, regulators became progressively stringent.

In Estonia, for example, the Financial Intelligence Unit (RAB) actively scrutinized the circumstantial services provided by VASPs and investigated the proviso of unlicensed fiscal services. By 2022, up of MiCA’s enactment, Estonia implemented strict amendments that explicitly banned the offering of futures and perpetuals nether a VASP license. Operators received a abbreviated 60 to 90-day grace play to comply, which yet led to the wide revocation of thousands of licenses.

Second, the CASP registry entries themselves are not ever informative to founders speechmaking them from the outside. An speech listed arsenic authorized for “operation of a trading platform” and “execution of orders” looks comprehensively authorized. Whether it is moving derivatives products nether a abstracted MiFID authorization requires speechmaking beyond the CASP registry entirely.

Third, galore platforms connection derivatives connected crypto-assets to non-EU clients, and EU clients marque up a number of users. The presumption is that the EU vulnerability is manageable. But the reverse solicitation rules discussed successful earlier installments of this bid use arsenic to unauthorized derivative services. A level selling leveraged BTC perpetuals to planetary clients portion simultaneously applying for a CASP licence for its EU spot trading merchandise whitethorn find that the 2 activities interact successful ways the compliance squad did not anticipate.

The Regulatory Junctions

Three regulatory frameworks converge astir astir full-service crypto exchanges:

MiCA governs spot trading, custody, transportation services, exchange, execution of orders, reception and transmission of orders, advice, and portfolio absorption connected crypto-assets. The CASP licence is required and capable for these activities erstwhile provided to EU clients.

PSD2 and the EMI authorities govern outgo services involving fiat. Any enactment involving the receipt, holding, oregon transmission of euro-denominated oregon different authoritative currency funds requires either a outgo instauration licence (for outgo initiation and wealth transmission) oregon an EMI licence (where the level stores fiat worth electronically arsenic a assertion redeemable astatine par). An speech that allows users to money accounts by slope transportation and retreat successful euros is, astatine minimum, touching a outgo service. Whether that requires PSD2 authorization depends connected the circumstantial travel and structure, but the question indispensable beryllium assessed deliberately, not assumed away.

MiFID II governs derivatives. Futures, perpetuals, options, and CFDs connected crypto-assets are fiscal instruments. Operating venues for their trading, oregon providing concern proposal and portfolio absorption successful narration to them, requires MiFID II authorization. The circumstantial authorization type, concern firm, regulated market, MTF, depends connected the concern model.

Platforms operating crossed each 3 categories request a operation that maps each merchandise enactment to its authorizing framework. That is simply a multi-license, multi-entity architecture successful immoderate cases, not a azygous CASP application.

What the Compliance Gap Looks Like successful Practice

Consider an speech that:

• Offers spot BTC/EUR trading (CASP: speech of crypto-assets for funds)
• Allows SEPA deposits and euro withdrawals (payment service, perchance PSD2)
• Runs BTC perpetual contracts with up to 20x leverage (derivative product, perchance MiFID II)
• Offers a crypto-backed Visa paper that spends euro balances (payment instauration capability, PSD2/EMI)

A CASP authorization, lasting alone, covers the archetypal point with tenable confidence. The different 3 beryllium astatine the boundary. Whether they necessitate autarkic authorizations, whether they tin beryllium structured arsenic ancillary to the main crypto business, oregon whether they indispensable beryllium routed done licensed 3rd parties are fact-specific questions. They are not questions the CASP licence answers.

This is precisely the benignant of investigation regulators volition use erstwhile reviewing a concern exemplary during the authorization process. The exertion requires a programme of operations under Article 62(2)(d) of MiCA, which indispensable acceptable retired the types of crypto-asset services the applicant intends to provide, including wherever and however those services are to beryllium marketed. A concern exemplary that includes derivatives oregon outgo services indispensable code those elements successful the application. Operators who dainty the CASP exertion arsenic covering the afloat scope of their concern hazard having the NCA place the spread earlier they do, astatine the worst imaginable infinitesimal successful the authorization process.

The Operational Consequence

For platforms already operating successful the EU nether grandfathering provisions that expire July 1, 2026, the regulatory spread has an contiguous timeline consequence. A VASP registration does not lick the outgo services occupation immoderate much than a CASP licence will. These questions bash not vanish with MiCA authorization; they persist and go much disposable to regulators whose supervisory tools present lucifer the ceremonial authorization framework.

For platforms presently designing their EU marketplace introduction structure, the series matters. Mapping each merchandise enactment to its authorizing model comes earlier choosing the jurisdiction for the CASP application. The jurisdiction prime affects the CASP, but it besides affects the feasibility of layering PSD2 and MiFID II authorizations connected the aforesaid entity oregon wrong the aforesaid group.

Getting the architecture incorrect is fixable. But it tends to beryllium costly to hole aft authorization, and it tends to aboveground astatine the infinitesimal the level is increasing accelerated capable that the regulators commencement paying attention.

What This Article Decoded

• MiCA’s CASP license authorizes 10 circumstantial crypto-asset services. It does not authorize outgo services nether PSD2, derivative trading nether MiFID II, oregon immoderate enactment that falls nether the fiscal instruments exclusion successful Article 2(4)(a) of the regulation.
• Perpetuals and futures connected crypto-assets are fiscal instruments successful the MiFID II consciousness erstwhile structured arsenic derivative contracts. Operating trading venues for these products, oregon providing services related to them, requires MiFID II authorization autarkic of immoderate CASP license.
• Fiat handling triggers PSD2. The receipt, storage, and transmission of euro-denominated oregon different authoritative currency funds constitutes a outgo service. A CASP licence does not authorize outgo services. This is simply a structural spread for immoderate speech offering nonstop slope funding, fiat withdrawal, oregon crypto-funded paper products.
• Dual and triple licensing architectures are real. Major exchanges with MiCA authorization that besides tally derivatives and outgo products typically clasp MiFID II and PSD2/EMI authorizations alongside the CASP. The operation is not exotic; it reflects the existent scope of a full-service crypto speech operating nether EU law.
• The concern exemplary appraisal happens earlier the application. NCAs reviewing CASP applications volition analyse the programme of operations. A concern exemplary that includes derivatives oregon outgo services, unaddressed, creates vulnerability during the authorization reappraisal itself.

The CASP licence is the indispensable instauration for operating a crypto speech successful the EU. It is, successful galore cases, not sufficient.

This nonfiction is based connected a study conducted by LegalBison successful May 2026. The contented is for informational purposes lone and does not represent ineligible advice.