Crypto License in Europe – Cost and Requirements
Info on crypto licensing in Europe, now up to date with the Markets in Crypto Assets (MiCA) Regulation.
LegalBison guides entrepreneurs through the steps of the crypto company registration process. Obtaining a European VASP license is a complex process involving high regulatory standards, financial costs, and rigorous checks.
Registering as a virtual assets services providers in Europe requires thorough preparation. The application process typically includes determining the country of registration, preparing a detailed business plan, and submitting the application to the regulatory authority.
In Europe, the crypto licensing process is a structured, multi-stage procedure with specific phases, timelines, and regulatory requirements, making careful planning and expert guidance essential. A VASP license requires strict compliance with mandatory obligations such as AML, KYC, and risk management protocols to both obtain and retain the license. Common mistakes in the digital assets service provider licensing process include choosing the wrong jurisdiction and submitting template documents that do not account for local specifics.
Legal experts in designing solutions for crypto licensing worldwide.
Certified ACAMS consultant with 5+ years experience in compliance and FinTech regulations.
Features and benefits of a CASP or VASP License in Europe
A crypto license in Europe is both a crucial starting point for novice businesses and a means of expanding the scope of their services for experienced companies. In a relatively new and only partly explored sector like crypto, gaining the trust of banks and clients alike should be the primary concern of every company owner.
Obtaining a VASP license is mandatory for businesses that provide financial services using virtual assets, including exchanges, custodial wallets, and payment processors. A crypto license is crucial for legally providing crypto services, which helps build customer trust and mitigates legal risks. Licensed entities can facilitate financial transactions involving the transfer, exchange, or movement of virtual assets within regulatory frameworks.
Obtaining a crypto license in Europe can notoriously work as proof of the lawfulness of a crypto exchange platform. It ensures compliance with strict regulatory frameworks, including AML (anti-money laundering), KYC (know-your-customer), and CTF (counter-terrorism financing) requirements. Regulatory compliance is essential for building trust with stakeholders and facilitating market access. These measures are essential to maintain transparency and trust in the crypto industry. Additionally, having a VASP license minimizes legal risks by mandating adherence to these stringent procedures.
- Standardized Requirements
- High Reputation
- Reasonable Costs
- Possibility to open a bank account
Requirements to get a crypto license in Europe
The main part of getting a license for crypto business in Europe is complying with the licensing requirements. Jurisdictions who are member states of the European Union are now all required to comply with the MiCA regulation.
Existing VASPs and crypto companies operating in these jurisdictions are now required to prepare an application for a CASP license, to comply with MiCA. MiCA introduces the concept of a Crypto-Asset Service Provider (CASP) license, which will replace the previously applied VASP model in EU countries.
This single licensing framework, known as CASP licensing, aims to standardize regulations across the EU, simplifying operations for businesses by providing a unified framework for crypto-asset service providers and allowing for trans-national passporting, a license being recognized by all other EU countries.
Past national licenses (and existing, for non-EU states) can differ from MiCA requirements and may be more stringent. VASP license requirements can vary significantly from country to country, impacting the ease of setting up a crypto business depending on the jurisdiction.
The regulatory landscape in Europe is being standardized under MiCA, which took full effect by 2024, imposing uniform licensing requirements across all EU member states. For our readers and clients who are concerned by this situation, we put out a guide on how to prepare your company for MiCA.
For this reason, we now distinguish the non-EU VASP (Virtual Asset Services Providers) such as the UK or Switzerland, from the EU CASP such as Estonia.
Most Europe crypto exchange license has the following basic requirements:
- Forming a limited liability company in Europe (sometimes in the licensing country), establishing a legal entity in the licensing jurisdiction;
- A starting share capital;
- Legal address in Europe;
- Appointment of qualified personnel as a director (has to be resident in some countries) who meet specific industry qualifications and regulatory standards;
- Appointment of an AML officer (has to be resident in some countries) who often serves as the compliance officer responsible for ensuring regulatory adherence and to fulfil the AML-KYC duties (in some cases this can be performed by the director);
- Compliance with the AML/KYC policy and procedures, based on the 5th EU directives on AML;
- Filling out all the application documents stated by the licensing authority;
- Other specific requirements depending on the country.
The evolving regulatory framework in Europe is shaping the licensing requirements for crypto businesses, making it essential to stay updated on changes to maintain compliance. This is where an experienced partner like LegalBison ensures the legality and safety of your venture.
Europe is one of the best reputed area to register a crypto company
Crypto companies and crypto exchanges in particular started to gain more and more traction back in 2017, when Estonia, in Northern Europe, became the first country in the world to design and offer a comprehensive crypto license. However, Estonia has recently tightened its VASP licensing framework, making it more challenging for companies to meet the updated requirements.
Europe is a highly reputable place on the global crypto market for establishing businesses in virtual assets and adjacent spheres, specifically crypto launchpads. European jurisdictions are comparatively way more trusted on the global scale but at the same time, contrary to what might appear as a given, most of them have lenient requirements for candidates.
Key EU jurisdictions such as Estonia, France, and Germany are considered important centers for crypto licensing under MiCA, offering specific regulatory advantages and established procedures. Operating in regulated jurisdictions is crucial for ensuring legal compliance and gaining access to local and EU-wide markets.
Since 2025, European countries who are member states of the European Union apply the MiCA regulation and progressively unrolling their updated framework. Since January 1st, it is possible to already apply for a MiCA license in Estonia, for example.
The CASP license becomes the standard for the entire EU, ensuring uniform rules and the ability to operate throughout Europe. Europe’s stable regulatory environment supports innovation and provides confidence for crypto businesses seeking long-term growth.
The cost of registering and running a crypto company in Europe
Another compelling reason to choose a Europe crypto license is its comparatively low cost. The pricing for creating a crypto trading or crypto exchange company in Europe is moderate compared to the majority of other jurisdictions, such as North America or high-end Asian countries like Singapore, Hong Kong or Taiwan.
Securing a European VASP license protects businesses against fines, penalties, and operational shutdowns due to non-compliance. Obtaining a crypto license in Europe can also help a business expand globally by providing access to international markets and enabling efficient cross-border operations through passporting rights or mutual recognition agreements. Proper licensing is essential for building a sustainable crypto business, ensuring legal compliance, regulatory approval, and long-term operational stability in the evolving crypto industry.
In addition, unlike in these jurisdictions, the annual regulatory requirements such as accounting, license and company renewal, AML officer services and other personnel, are substantially cheaper in certain European countries.
All in all, the costs of obtaining a European VASP or CASP license remain attractive for novice business owners who are not ready to spend millions on starting a crypto trading platform.
While foreseeing the future changes in pricing policies of different licensing jurisdictions, LegalBison is always geared up to guide clients through the company formation process in a cost-effective way. Lithuania has a fast and cost-effective VASP registration process, typically completed within 1-3 months.
Banking services for a crypto company in Europe
Last but not least, a European crypto license entails an opportunity to open a corporate bank account in the licensing country. Most jurisdictions require licensees to deposit their starting share capital in a local bank as part of the application procedure. The CASP license allows companies to operate throughout the EU thanks to the passporting principle, which simplifies market access.
Having a VASP or CASP license facilitates access to financial institutions and banking services, making it easier for crypto businesses to establish partnerships and credibility within the regulated financial ecosystem. Regulatory compliance is crucial for building relationships with traditional financial institutions such as banks, which often require proof of compliance before collaborating with crypto firms.
This local bank account can and should be further used for all types of corporate expenses. Only in this way can a regulatory authority supervise all the inbound and outbound payments of the company, as well as prevent potentially fraudulent operations. Regular financial reporting is required to demonstrate compliance and financial stability to regulators. A VASP license confirms that a company operates legally and complies with established rules to protect against financial abuse.
Needless to say, a crypto trading or exchange platform gains the double trust of the potential customers when it owns an account in one of the European banks.
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Europe crypto license: Facts & things to know
Europe and the European Union are very active on the matter of enabling cryptocurrency activities and businesses. Here are the necessary information to begin with. The UK aligns its cryptocurrency regulations with the EU’s 5AMLD and 6AMLD, which focus on anti-money laundering and identity requirements, but this is subject to change. It is important to understand the regulatory framework in each jurisdiction, as requirements and compliance standards can vary significantly.
The process of getting a crypto license in Europe
All European VASP and CASP licenses have common denominators when it comes to requirements, such as the need to comply with anti-money laundering laws, use the KYC policies and software to verify customers, and report specific transactions back to regulators in order to check them for any suspicious or fraudulent activities. Ongoing compliance is required after obtaining a VASP license, including regular reporting and audits to ensure adherence to regulatory standards. Regular compliance audits are necessary to verify that the business continues to meet AML, KYC, and other regulatory requirements. Significant ongoing compliance costs arise from maintaining staff, internal procedures, auditing, and reporting after obtaining a VASP license. Each EU member state has its own competent authority to manage cryptocurrency applications and enforcement, which adds a layer of complexity to the process.
The information below were up to date and true until the end of 2024 and the full enforcement of the MiCA Regulations. Every existing and future crypto company in Europe willing to operate a licensed legal activity must acknowledge the new regulations and what in entails, in order to successfully qualify as a regulated Crypto Asset Service Provider (CASP) from December 2024. Legal structuring is crucial at this stage to ensure compliance and operational readiness for licensing. LegalBison advises and assists with every necessary requirements in order to seamlessly and effortlessly prepare for this transition. Contact our consulting team for more information.
Poland — used to be by far the cheapest and the fastest option for VASP registration. The Polish Financial Supervision Authority (FSA) lists such basic requirements as registering a limited liability company with a legal address in Poland, providing compliance documents, appointing a director who will be obliged to pass the AML training or an AML officer who does not necessarily have to be a Polish resident.
Lithuania — which is another licensing jurisdiction for crypto businesses, provided a reputable VASP license. After obtaining such a permit from the Financial Crime Investigation Service (FNTT), a company has the right to provide crypto-related services to clients. The AML requirements in Lithuania are higher compared to Poland, and there is also an obligation to have a local office, as well as a minimum share capital of 125,000 EUR that should be deposited to a Lithuanian bank account. To obtain a CASP license in France, businesses must register with the Autorité des Marchés Financiers (AMF) and meet specific capital requirements. The approval process for these licenses is a formal, multi-stage procedure that involves submitting thorough documentation and undergoing regulator checks before authorization is granted.
Portugal — is widely known to be a crypto-friendly country that also advocates for legal and transparent crypto-related activities. Henceforth, Portugal imposes rather rigorous licensing requirements on everyone who wants to launch their crypto business under a Portuguese permit. The company should be registered in Portugal and have a local office, as well as a resident director and AML officer. In addition, the Banco de Portugal, which licenses virtual asset service providers in the country, requires an all-embracing business plan and extensive AML-CFT and KYC policies that comply with the local AML laws. In the Netherlands, companies must register with the Authority for the Financial Markets (AFM) and submit a comprehensive application to obtain a CASP license.
So where should one look for a crypto license, now that EU VASP regimes have been overturned by the MiCA Regulation? Here are some possibilities: In Germany, obtaining a cryptocurrency license requires meeting specific exchange and operational requirements as dictated by the Federal Financial Supervisory Authority (BaFin).
Estonia CASP license — a streamlined and straightforward MiCA license. Estonia is one of the best reputed countries worldwide for crypto businesses, as it is the pioneer country in welcoming and regulating such activities. Alternatively, the Malta CASP license and the Czech CASP license are very sought after.
Switzerland — not a part of the European Union, therefore not liable to enforce the Markets in Crypto-Assets regulation. Switzerland is historically a leading jurisdiction for financial services and prestige. The Swiss crypto license is therefore very sought after.
MiCA Regulation
Markets in Crypto-Assets (MiCA) is an EU regulation that was ratified in 2023 and has started to come into effect in June 2024. Some European countries have already applied MiCA while others are taking more time to complete the implementation procedure. Speaking of time limitations, there is no precise timeframe as to when all the EU countries will integrate the regulation since the process of standardizing crypto-related activities varies from jurisdiction to jurisdiction. E-Money Tokens (EMTs) are stablecoins that must be issued by authorized credit institutions or e-money institutions, facing strict reserve requirements.
It is noteworthy that some countries, like Estonia or France, already have regulations similar to the ones that will be passed along with the enforcement of MiCA. Others, however, will need to adjust their licensing requirements and conditions according to the novel framework. MiCA is set to impact all businesses within the EU that deal with cryptocurrency, including trading crypto assets, ICOs, custodial wallet issuers, and other entities that provide any existing services in the crypto ecosystem. The final deadline for enforcement of the MiCA regulation was set for December 2024, after which all crypto authorities and companies will need to comply progressively. Depending on the jurisdiction, a grandfather right of up to 18 months is granted to existing licensed entities. To obtain a CASP license in the Czech Republic, the application must be submitted to the Czech National Bank and requires a comprehensive package of documents.
Under MiCA, AML/KYC requirements are a core part of the compliance process. Enhanced due diligence procedures are required for high-risk customers to mitigate money laundering risks and ensure regulatory compliance. It is also essential to implement strict AML practices as part of the overall compliance framework to reduce legal risks and secure regulatory approval.
As a comprehensive framework for everyone dealing in crypto, MiCA might seem binding in its company admission criteria. However, it also functions as a solid incentive to polish all the rough edges on their digital profile for any new or existing company that aims to obtain a crypto mining license in Europe. Custodial wallet providers, in particular, are subject to stricter compliance due to the higher risks associated with managing private keys and holding client assets.
LegalBison thoroughly and precisely monitors the drafting and enforcement procedures of MiCA all over the EU since it directly affects a large share of our clients. Our main goal is to turn any possible dread before the new regulation into calm and confident anticipation.
Our legal team is on a mission to provide our clients with the most up to date and suitable advice regarding the transition to MiCA.
You can find additional information in our blog post series about the novelties introduced by MiCA:
Compliance requirements for crypto companies in Europe
The compliance landscape for crypto companies in Europe is rapidly evolving, driven by the European Union’s commitment to creating a secure and transparent environment for digital assets. With the introduction of the Markets in Crypto-Assets (MiCA) regulation, crypto asset service providers (CASPs) and virtual asset service providers (VASPs) face a harmonized set of regulatory requirements across all EU countries. This unified approach aims to foster financial stability, protect consumers, and prevent money laundering within the growing markets in crypto assets.
To obtain a VASP license and operate legally in the EU, crypto businesses must implement a comprehensive compliance framework that addresses strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) obligations. Regulatory authorities, such as the Polish Financial Supervision Authority and other national bodies, conduct a thorough regulatory review during the VASP licensing process. This includes assessing whether the crypto company meets minimum capital requirements, has robust customer due diligence procedures, and maintains effective transaction monitoring systems.
Ongoing compliance is a cornerstone of the regulatory environment in the EU. Crypto companies are required to submit regular financial statements, maintain up-to-date compliance procedures, and ensure that all business operations align with the latest regulatory frameworks. The MiCA regulation further mandates that crypto asset service providers register with the relevant regulatory authority and demonstrate their ability to prevent money laundering and support financial stability.
What is the best jurisdiction in Europe for a crypto company?
A logical question that may arise naturally after studying all the possible options. It does not, however, have a definite answer. The choice of a fitting crypto license in Europe should be based on the project itself and the estimated budget, as well as such subtleties as the citizenship of the directors, employees, and shareholders, since some jurisdictions require them to be local residents. Businesses operating in the crypto sector face significant regulatory compliance challenges, as they must adapt to evolving legal requirements across different jurisdictions and ensure they meet all necessary licensing obligations.
At the same time, one must comprehend the benefits of obtaining a license for their particular company and what they can do with such. Not every licensing authority covers the same range of crypto-related activities. Thus, a license for a Token Issuance Company will differ from the one issued to NFT marketplaces, crypto launchpads, and the like. Proper licensing helps companies avoid legal consequences such as fines, operational shutdowns, and other penalties by ensuring compliance with regulatory authorities.
Operating a crypto licensed European company from all over the world
In many instances, it is possible to run a crypto company under a European license remotely. The word remotely refers to the minimal involvement of the company owner, director, shareholders, and key employees in the licensing country. Some licenses allow for a fully remote operation, while others can impose rather limiting requirements: for instance, the necessity of appointing a resident director or an AML officer. The timeline for obtaining a VASP license can vary significantly by jurisdiction, with some jurisdictions like Lithuania and Estonia issuing licenses in 1-3 months, while others may take 6-12 months. This variability can impact business planning and market entry strategies. The application review process for a VASP license can take more than six months in many countries, while faster jurisdictions like Lithuania or Estonia can issue licenses in 1-3 months.
Generally speaking, it is feasible to operate a crypto business under a European license without basing all the internal and external activities of the company in the regulating country. Registration as a CASP or as a VASP in Europe, among other reasons, is advantageous as it often does not bind the company and its employees to be physically present within the licensing jurisdiction.
What are the cheapest crypto licenses in Europe?
It is natural for entrepreneurs in an innovative and booming space, such as the blockchain industry, to inquire for the cheapest crypto licenses in Europe. Starting a crypto company with minimum expenses at every level, including on the legal side, would allow to retain budget for the actual business: that is, development and marketing mainly. This is why such a question is important to ask. Poland is by far the cheapest and fastest option for VASP registration, with a processing time of about 4-6 months. However, long approval times in other jurisdictions can create cash flow challenges and delay market entry for businesses, making it crucial to choose the right licensing country.
The answer has changed throughout the years and the price is variable depending on the exact project and services to be provided. The ideal jurisdiction for your project depends on multiple factors:
- Crypto activities to be performed;
- Custody of customers funds;
- Overlap with potential other regulations;
- Target markets;
- Budget;
- Need for regulatory stability and certainty.
We encourage you to provide a detailed description of your crypto project or activity to one of our consultants, to inquire about the cheapest crypto licenses in Europe. Our team will take your budget into consideration and make sure to design a suitable solution to take care of your finances.
Our selection of the best European crypto licenses
Curated by our legal team, these are the most popular jurisdictions for starting a cryptocurrency activity in a European jurisdiction.
MiCA CASP License in the Czech Republic
from 3,300 €-
Business friendly EU country
-
Fully remote structure
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Bank account opening is fast
MiCA CASP License in Estonia
from 1.420 €-
0% Corporate Income Tax
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Cheap and fast process
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No travel needed
MiCA CASP License in Malta
from 3,300 €-
Business friendly EU country
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Fully remote structure
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Bank account opening is fast
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Fastest licensing process
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Lowest price in 2024
-
Available ready-made companies
Crypto License in the United Kingdom
from 9.900 €-
19% CIT
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FinTech and banking hub
-
Clear process
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MiCA is here - is your crypto company ready?
The MiCA regulation is now in force. VASPs and aspiring projects have until the end of the year to qualify as MiCA-regulated CASPs and continue their operation.
Prepare your crypto business for this regulatory change now, with the help of LegalBison.
Contact us now and benefit from a free consultation on how to be MiCA compliant in the shortest delays.
About crypto licenses in Europe
Since June 2024, Europe has started enforcing a regulation applicable to every EU member state: MiCA (Markets in Crypto Assets). Until December 2024, all EU member states must progressively enforce this new regulation. The June 2024 enforcement has however immediately affected stablecoin services providers, requalifying them into Asset Referenced Tokens (ART) and E-Money Tokens (EMT). Asset-Referenced Tokens (ARTs) are tokens that maintain stable value by referencing a basket of assets and require specific authorization to issue. USDC creator, Circle, has already complied with the new MiCA regulation. In Spain, companies must register as a Virtual Asset Service Provider (VASP) with the Bank of Spain or obtain a MiCA-aligned CASP license from the CNMV. The Financial Action Task Force (FATF) has played a key role in establishing international standards for VASP licensing and AML/CTF compliance, which MiCA aligns with. Request a free consultation for more information on this regulatory change.
Despite the enforcement of a common regulation for the whole European Union, MiCA, some countries may have more incentives for the usage, adoption and development of crypto. The regulatory landscape can vary by EU country, with some offering more favorable conditions for crypto businesses. This is notably the case in Poland, Estonia or France, who are adopting a pro-crypto-business stance.
The answer has changed, and will keep changing, with the enforcing of the MiCA regulation. The easiest way to obtain a crypto license is to do so with the help of a trusted legal partner, such as LegalBison. Future or existing crypto-company owners are welcome to contact us at any time for efficient assistance at every stage of the process.
LegalBison is headquartered in Tallinn, the capital of Estonia, and our knowledge of the country’s legal framework allows us to provide accurate advice on forming crypto companies in the country. Contact us and we will get in touch to answer all your queries. We are happy to help you learn more about the MiCA license in Estonia and to assist with the licensing procedure.
The new crypto regulation in Europe called MiCA sets requirements that are not very different than what was already enforced in a few European countries. LegalBison encourages its clients and every VASP owner to get in touch for an audit of compliance with the new regulations, the first consultation call is free. Alternatively, we encourage our readers to read our dedicated guide on the MiCA regulation for more information.
Start your crypto company in Europe today
Request more information about Europe crypto licenses and the MiCA (Markets in Crypto Assets) regulation to our legal experts.
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Legal experts in designing solutions for crypto licensing worldwide.
Certified ACAMS consultant with 5+ years experience in compliance and FinTech regulations.