ReadyCorp Leads the Way for VASP-to-CASP Conversions Under MiCA’s Unified EU Framework

As the European Union embarks on a transformative path for digital assets with the Markets in Crypto-Assets (MiCA) regulation, ReadyCorp is at the forefront, guiding Virtual Asset Service Providers (VASPs) through their conversion to Crypto-Asset Service Providers (CASPs). With a streamlined licensing regime, MiCA opens new doors for crypto businesses to expand securely across the European market—establishing regulatory consistency and consumer protection across all EU member states. As VASPs face the need to transition to CASP licensing, ReadyCorp stands prepared with comprehensive compliance services, ensuring a seamless and proactive approach to this regulatory shift.

MiCA’s Impact: New Regulatory Standards and Licensing Requirements

MiCA regulation, set to come into effect for crypto exchanges on December 30, 2024, introduces a framework covering stablecoins, exchanges, and wallet providers, which will bring crypto services in line with EU financial standards. This unified licensing model allows crypto firms to “passport” operations across EU member states, a significant opportunity for businesses to expand regionally under a single regulatory license.

Key dates include:

June 30, 2024: Initial MiCA provisions for stablecoin issuers took effect.

December 30, 2024: Additional MiCA provisions, including those affecting crypto exchanges, will be enforced.

January 1, 2025: CASP license application submissions open for current VASPs and new applicants.

The shift to MiCA requires all existing VASP license holders to apply for CASP licensing, initiating a mandatory transition period. While jurisdictions may offer VASPs up to 18 months to operate under previous regulations, ReadyCorp advises companies to start preparing now due to narrow transition timeframes.

ReadyCorp’s Conversion Services: Building the Foundations for Compliance

ReadyCorp’s extensive network and regulatory expertise are designed to simplify the VASP-to-CASP conversion process by offering services that address all major MiCA requirements:

• Comprehensive Regulatory Documentation: ReadyCorp assists in drafting and structuring internal policy documentation aligned with MiCA requirements for AML compliance, risk management, and customer safeguarding.
• Local Presence and AML Expertise: ReadyCorp assists businesses in establishing a local presence in the EU, including setting up physical offices and staffing them with senior-level AML specialists, such as Chief Compliance Officers (CCO), Chief Risk Officers (CRO), and Money Laundering Reporting Officers (MLRO). By aligning operations with EU-based compliance expectations, ReadyCorp ensures that CASPs meet regulatory standards across all jurisdictions.
• Capital Requirements and Structuring: To comply with MiCA, crypto firms must meet stringent capital requirements based on the CASP class they qualify for. ReadyCorp advises businesses on securing the necessary capital—ranging from €50,000 for Class 1 CASPs to €150,000 for Class 3 CASPs—to foster market stability and enhance customer protections.

Cross-Border Compliance and Growth Opportunities: MiCA’s passportable CASP license provides a significant advantage, enabling companies to operate across EU member states under a single regulatory umbrella. ReadyCorp’s expertise in cross-border operations and relationships with local regulators ensures a seamless expansion strategy, fostering growth within a secure, regulated environment.

Moving Forward with ReadyCorp

As the new MiCA regime draws near, ReadyCorp encourages all current VASPs to start preparing now to maintain compliance. By facilitating a smooth transition to CASP licensing, ReadyCorp aims to help crypto businesses thrive within Europe’s new regulatory landscape and expand across borders with confidence.

For more information on how ReadyCorp can support your transition from VASP to CASP under MiCA, contact our regulatory compliance team today.

ReadyCorp is here to support crypto businesses as they navigate this exciting regulatory shift. Together, we’re pioneering a compliant, secure future for digital assets in Europe.