The Markets in Crypto-Assets (MiCA) Regulation establishes a comprehensive legal framework for crypto-asset service providers (CASPs) operating within the European Union. As regulatory scrutiny increases, compliance with MiCA is not only a legal requirement but a strategic imperative for firms seeking to build trust and operate at scale.
This article explores the importance of MiCA policies and procedures, how the authorization process works, and how CASPs can meet the requirements efficiently and effectively.
The Importance of MiCA Compliance
MiCA introduces harmonized rules for crypto markets across all EU member states. By enforcing common standards, the regulation aims to enhance market integrity, investor protection, and financial stability.
Failure to implement MiCA-compliant policies may result in:
- Regulatory penalties
- Rejection of authorization applications
- Operational disruptions
- Reputational damage
To meet these standards, CASPs must prepare a wide array of internal documentation, including a complete set of policies and procedures aligned with MiCA requirements.
Authorization Process Overview
Step 1: Business Document Preparation
The first step involves drafting and compiling business-related documents. These documents typically include:
- A detailed business program
- Management and shareholder assessments
- Financial projections and organizational structure
This phase sets the foundation for demonstrating the firm’s viability and strategic direction.
Step 2: Preparation of Regulatory Documents
The second and more technically demanding step is the preparation of regulatory documents—specifically, the internal policies and procedures required under MiCA. These documents must:
- Address all relevant regulatory requirements
- Be tailored to the firm’s specific operations
- Demonstrate practical implementation capability
Many CASPs choose to outsource this step to legal experts due to its complexity and the need for customization.
Ready-to-Use Policies and Procedures
Firms like LexDelta offer fully compliant MiCA policy packages that can be customized and deployed within 1–3 business days. These documents are designed to be practical, editable, and immediately usable by internal compliance teams.
Key Features of the Package
- Compliant with all MiCA requirements
- Operational and practical language
- Highlighted areas for customization
- Fast turnaround
- Includes guidance where additional details may be required
Core Policies and Procedures Included
The following is a list of policies and procedures commonly required for MiCA compliance:
Governance and Oversight
- Accounting Policy
- Compliance Policy
- Business Continuity Policy and Plan
- Whistleblowing Policy
- Conflicts of Interest Policy
Client Protection and Conduct
- Complaints Handling Procedure
- Suitability Policy
- Suitability Test Policy
- Personal Account Dealing Policy
Risk and Operations
- Execution Policy
- Custody Policy
- Outsourcing Policy
- Record Keeping Policy
- Remuneration Policy
Capital and Financial Controls
- Own Funds Monitoring Procedure
- Transfer Service Policy
- Non-Discriminatory Commercial Policy
Each policy addresses specific operational areas that regulators will assess as part of the CASP authorization process.
How the Documents Are Structured
The documents are not generic templates. Instead, they include:
- Detailed procedural steps
- Roles and responsibilities
- Monitoring and reporting frameworks
- Areas highlighted for firm-specific customization
This allows the CASP to align the documentation precisely with its business model while ensuring regulatory compliance.
What Is Not Included
The package excludes certain specialized policy areas, such as:
- AML/CTF policies
- DORA (Digital Operational Resilience Act) requirements
- MiFID-related policies
- ICT risk management frameworks
CASPs may need to procure or develop these separately, depending on the nature of their services and risk profile.
Implementation and Customization Tips
To maximize the effectiveness of the policy suite:
- Assign internal owners for each policy
- Customize highlighted sections with specific company information
- Provide training for key staff
- Maintain documentation change logs
- Conduct internal audits and gap analysis
These steps not only ensure compliance but also help establish a strong risk and governance culture.
Conclusion
MiCA compliance is no longer optional—it is a core requirement for operating legally in the EU crypto-asset space. The preparation of policies and procedures is one of the most critical components of the authorization process. With ready-to-use, editable documents, CASPs can streamline the compliance journey while ensuring that all regulatory expectations are met.
Investing in robust documentation today reduces legal risks, builds operational resilience, and lays the foundation for sustainable growth in the evolving crypto-asset landscape.
