MiCA licence vs MiCA partner: which route into the EU is right for your business?

Under MiCA, serving crypto-asset markets in the European Union requires authorisation. A business has two realistic routes to that authorisation: apply for its own MiCA licence, or operate through a MiCA-authorised partner that already holds one. A licence gives full independence but takes significant time and capital; a partner gives faster access while the authorisation stays with the partner. The right choice depends on time, budget, and how much of the regulated activity a business wants to own.

What a MiCA licence is

A MiCA licence is authorisation granted by a national regulator in an EU member state to provide specific crypto-asset services, such as custody, exchange, execution and transfer. It is often referred to as a CASP authorisation, and it replaces the older national VASP registrations that many countries used before MiCA. Holding one means the business can serve EU clients directly, under its own name and standing, for the services the authorisation covers.

What a MiCA-authorised partner is

A MiCA-authorised partner is a firm that already holds authorisation and lets other businesses reach EU crypto-asset markets through its regulated infrastructure. The authorisation and the regulated activity sit with the partner, while the business continues to serve its own clients. It is a way to access the market without applying for a licence from the start.

How the two routes compare

• Time: a licence application is a long process, often many months to well over a year including preparation and regulator review. A partner can be considerably faster, depending on onboarding and due diligence.
• Cost: a licence requires significant capital, legal and compliance investment, plus ongoing capital and reporting obligations. A partner turns much of that into a commercial arrangement.
• Control and independence: a licence gives full independence and direct standing. A partner means relying on the partner's authorisation and infrastructure for the covered activity.
• Ongoing obligations: a licence brings continuing regulatory, capital and reporting duties. A partner carries the authorisation, though the business still has its own obligations to understand.

Which route fits which business

Applying for a licence tends to fit businesses that plan to make regulated crypto-asset services a core, long-term part of what they do, and that have the time and capital to invest. Working with a partner tends to fit businesses that need EU market access sooner, want to test the market before committing, or would rather not carry the full regulatory burden themselves. Many businesses start with a partner and pursue their own licence later.

Where Damex fits

Damex is a MiCA-authorised partner. In respect of servicing within the EU, Damex Digital Ltd is authorised by the Malta Financial Services Authority as a Crypto-Asset Service Provider and a Payment Institution under MiCA and the FIA. This lets a business reach EU markets through Damex's regulated infrastructure rather than applying for its own authorisation from the start.

Frequently asked questions

What is the difference between a MiCA licence and a MiCA-authorised partner?

A MiCA licence is your own authorisation to provide crypto-asset services in the EU. A MiCA-authorised partner already holds authorisation and lets you reach EU markets through its regulated infrastructure, without applying for your own.

Is a MiCA partner cheaper than getting a licence?

Usually the upfront cost is lower, because a licence requires significant capital and a long application, while a partner turns much of that into a commercial arrangement. The right comparison depends on your volume and long-term plans.

Can I switch from a partner to my own licence later?

Yes. Many businesses use a partner to enter the market quickly and pursue their own authorisation over time. The routes are not mutually exclusive.

Which crypto-asset services does a MiCA authorisation cover?

It depends on the specific authorisation, but it can include custody and administration of crypto-assets, exchange of crypto-assets for funds or other crypto-assets, execution of orders, and transfer services. Always check the exact permitted services.

Disclaimer

This article is for information purposes only and does not constitute financial, investment, tax or legal advice. Crypto-assets and stablecoins are high risk. Their value can go down as well as up and you may lose the full value. Stablecoins, including e-money tokens and asset-referenced tokens, may lose their peg, and redemption rights are generally against the issuer, not Damex. Crypto-asset services are not covered by deposit guarantee or investor compensation schemes. In the EEA, crypto-asset services are provided by Damex Digital Ltd, authorised by the Malta Financial Services Authority as a CASP under MiCA (EU) 2023/1114. Crypto-asset services and payment services are provided under separate regulatory frameworks. Availability depends on your jurisdiction and is set out in the relevant terms and conditions.