About MiCA & DORA Compliance
What is MiCA?
The Markets in Crypto-Assets (MiCA) Regulation is the European Union's comprehensive framework for regulating crypto assets and services. MiCA aims to establish clear rules to protect investors, ensure transparency, and foster stability in the rapidly growing crypto market. It applies to Crypto-Asset Service Providers (CASPs), issuers of crypto assets (like stablecoins), and financial institutions offering crypto-related services. The regulation outlines requirements for governance, risk management, and consumer protection, creating a unified regulatory environment across the EU.
Key Deadlines:
- Entry into Force: June 2023
- Application Dates:
- June 2024: Application of rules for stablecoin issuers
- December 2024: Application of rules for CASPs
Transitional Provisions:
CASPs already operating in the EU before December 30, 2024, may continue their activities during a transitional period while seeking authorization under MiCA. The specific deadlines for obtaining MiCA authorization vary by EU Member State, with transitional periods ranging from 12 to 18 months. For detailed information, refer to the List of Grandfathering Periods Decided by Member States under MiCA.
It's crucial to note that if a company fails to submit its application within the specified transitional period set by its Member State, it cannot continue operations until it obtains full approval from the local regulator. This underscores the importance of timely compliance to avoid operational disruptions.
What is DORA?
The Digital Operational Resilience Act (DORA) is an EU regulation designed to ensure that financial institutions can withstand, manage, and recover from IT disruptions and cyber threats. DORA applies to a wide range of entities, including banks, payment institutions, e-money issuers, CASPs, and Virtual Asset Service Providers (VASPs).
DORA establishes requirements for:
- IT Risk Management: Identifying and mitigating risks related to digital operations
- Cybersecurity: Implementing robust security measures to protect data and systems
- Incident Response: Preparing for, managing, and recovering from disruptions
- Third-Party Oversight: Monitoring risks associated with external IT service providers
Key Deadlines:
- Entry into Force: January 16, 2023
- Application Date: January 17, 2025
As of January 17, 2025, all financial entities within DORA's scope must comply with its requirements, including having a comprehensive register of their contractual arrangements with ICT third-party service providers. Non-compliance can lead to significant penalties and operational restrictions. For more details, see the European Banking Authority's information on DORA.
Why Compliance is Critical
Compliance with MiCA and DORA is essential for businesses operating in the crypto and financial sectors. It's not just about meeting regulatory requirements—it's about building trust, ensuring stability, and gaining a competitive edge.
- Legal Operation: Aligning with MiCA and DORA enables businesses to operate legally across the EU.
- Investor and Customer Confidence: Demonstrates a commitment to transparency, security, and consumer protection.
- Operational Stability: Strengthens IT systems and mitigates risks from cyber threats and disruptions.
- Avoiding Penalties: Non-compliance can lead to severe financial and legal consequences.
- Market Advantage: Compliance fosters credibility and attracts investors, partners, and customers.
How to proceed with MiCA Guide solution:
- Select Your Toolkit: Choose the MiCA or DORA Compliance Toolkit that suits your business needs, or opt for both.
- Pay & Download: Instantly access professionally crafted templates
- Request Customization (Optional): Get expert support to adapt templates to your unique business model.
- Implementation Support: Receive step-by-step guidance for smooth implementation.
MiCA & DORA Implementation Timeline
Key deadlines and milestones for MiCA and DORA compliance across the EU
June 2024
June 2024
MiCA Stablecoin Regulation
Application of MiCA rules for stablecoin issuers begins, including:
- Capital requirements
- Reserve management
- Investor protection measures
- Operational standards
December 2024
December 2024
MiCA Initial Compliance
Initial compliance deadline for MiCA regulation. Key requirements include:
- Governance structures
- Risk management frameworks
- Consumer protection measures
- Operational systems and controls
January 17, 2025
January 17, 2025
DORA Implementation
Full DORA compliance required, including:
- IT Risk Management
- Cybersecurity Measures
- Incident Response Plans
- Third-Party Risk Management
June 30, 2025
June 30, 2025
Baltic & Northern EU Deadline
MiCA authorization deadline for:
- Lithuania (LT)
- Latvia (LV)
- Estonia (EE)
- Poland
- Netherlands
December 31, 2025
December 31, 2025
Central EU Deadline
MiCA authorization deadline for:
- Italy
- Austria
- Germany
- Spain
July 1, 2026
July 1, 2026
Western & Southern EU Deadline
Final MiCA authorization deadline for:
- Slovakia
- Czech Republic
- France
- Malta
- Luxembourg
