Get a Crypto License in Europe

Legal entry into the EU market: Why businesses need a cryptocurrency license

Europe currently holds a leading position in cryptocurrency regulation and fosters innovation in the digital financial sector. With the implementation of the Markets in Crypto-Assets Regulation (MiCA), a stable and legally grounded system is being established within the European Union, enabling companies to legally obtain licenses for cryptocurrency activities.

MiCA creates a legal framework for virtual asset service providers (VASPs). By obtaining such a license, a company can:

• operate as a cryptocurrency exchange;
• provide digital asset custody services (wallets);
• carry out other related operations with crypto-assets.

All of this is within a clearly defined and harmonized legal framework throughout the EU.

Having a Europe license allows a company to secure a strong competitive position in the rapidly developing crypto market. The European Union offers a developed financial ecosystem with transparent regulatory structures and proactive supervisory authorities that engage with businesses informally and constructively.

It is important to note that while the regulatory procedures are highly reliable, they are not excessively strict. This contributes to:

• increased trust from investors and clients;
• strengthened business reputation;
• simplified interactions with financial partners and banks.

Licensed companies gain access to banking services, an accelerated registration process, and clear compliance obligations.

Obtaining a Europe cryptocurrency license signifies official recognition of the company by European Union regulators. This enhances its legal and trustworthy status in the market and provides a significant competitive advantage both within the EU and in international business circles.

With a European license, a company is entitled to:

• offer cryptocurrency exchange services, digital wallets, and related financial services;
• scale its business across the entire EU territory;
• reach a multimillion-user audience seeking secure and regulated solutions;
• launch projects and products in a legally predictable environment that supports growth and innovation.

In addition, the application and licensing procedures in the EU are efficient and transparent, enabling companies to enter the market more quickly and adapt to its requirements.

Amid rapidly evolving digital asset regulation in Europe, obtaining a cryptocurrency license is becoming an essential part of the strategy for any crypto company aiming for legal, sustainable, and competitive operations.

Types of activities covered by the European crypto license

The European cryptocurrency license allows your company to provide various services related to virtual assets, making it applicable to a wide range of business models in the digital currency industry.

Key types of activities include:

• cryptocurrency exchange;
• provision of virtual wallet services;
• other digital financial services regulated under the VASP category.

Companies holding this cryptocurrency license can legally offer these services while complying with the strict regulatory oversight of the European market.

Every company that obtains a European cryptocurrency license is required to strictly adhere to established regulatory requirements. Among the key conditions are the implementation of reliable and effectively functioning AML (Anti-Money Laundering) and KYC (Know Your Customer) policies. Such companies must maintain complete and up-to-date records, ensure continuous compliance with European financial regulatory standards, and be prepared for oversight by regulatory authorities.

The regulatory framework also mandates the implementation of risk management protocols, effective cybersecurity measures, and regular vulnerability assessments aimed at preventing illegal activities, including money laundering and fraud.

Additional considerations include:

• certain complex financial services, such as asset management or support for ICOs/IEOs, may require additional authorization;
• regulators expect well-prepared applications, including a clear description of the business model, the company’s financial standing (including capital reserves), and compliance protocols;
• holding a Europe cryptocurrency license enables a company to build a sustainable growth model within the EU and operate in a predictable regulatory environment.

Thus, meeting these requirements is not only mandatory but also forms the foundation for the legal and sustainable development of a cryptocurrency business within the European Union.

• 
  Poland

  Low entry threshold

  Advantages:

  • Active regulation
  • Simple registration
  • Investment support

  Timeframe:

  from 4 months

  Taxes:

  19%

  More Detailes
• 
  Slovakia

  Transparent regulation

  Advantages:

  • Clear requirements
  • Fintech support
  • Flexible structure

  Timeframe:

  from 3 months

  Taxes:

  21%

  More Detailes
• 
  Portugal

  Tax benefits

  Advantages:

  • Fintech environment
  • Simplified registration
  • Flexible taxation

  Timeframe:

  from 4 months

  Taxes:

  21%

  More Detailes
• 
  Czech Republic

  Exchange-oriented

  Advantages:

  • Stable jurisdiction
  • Focus on VASP
  • Tech environment

  Timeframe:

  from 3 months

  Taxes:

  19%

  More Detailes
• 
  Malta

  Transition from VFA

  Advantages:

  • Ready infrastructure
  • Regulatory support
  • Recognition by exchanges

  Timeframe:

  7–12 months

  Taxes:

  up to 35% with benefits

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• 
  Cyprus

  For headquarters

  Advantages:

  • English-speaking environment
  • Low tax
  • Investor base

  Timeframe:

  from 3 months

  Taxes:

  12.5%

  More Detailes
• 
  Spain

  Fintech-friendly

  Advantages:

  • Large market
  • Soft compliance
  • Harmonized procedures

  Timeframe:

  from 4 months

  Taxes:

  25%

  More Detailes
• 
  Bulgaria

  Minimal costs

  Advantages:

  • Low maintenance costs
  • Easy launch
  • EU compliance

  Timeframe:

  from 4 months

  Taxes:

  10%

  More Detailes
• 
  Estonia

  Experience and reputation

  Advantages:

  • 0% on profits
  • IT infrastructure
  • Quick launch

  Timeframe:

  3–6 months

  Taxes:

  0–20%

  More Detailes

Advantages of a European crypto license for business

Obtaining a license to operate in the cryptocurrency sector in Europe offers companies significant advantages, combining stable regulation with access to a large and rapidly growing digital asset market. Coordinated efforts by the European Union, particularly through the MiCA framework, provide a clear and well-defined regulatory environment for virtual asset service providers (VASPs).

Holding such a Europe cryptocurrency license enhances transparency, strengthens security, and consequently builds trust – both among users and between businesses and financial institutions across EU countries.

Key advantages include:

• Regulated status: A European crypto license is officially recognized by EU financial regulators. This means both the company and its services are fully legal under current legislation.
• Broad scope of activities: A single license grants the right to offer multiple services – including cryptocurrency exchange, asset custody (wallets), payment services, and more.
• Extensive market: Europe’s population represents a multimillion client base interested in safe and regulated crypto solutions.
• Strict AML/KYC requirements: Companies are required to implement and maintain effective anti-money laundering (AML) and know-your-customer (KYC) procedures, which increases trust from users, banks, and supervisory bodies.
• Business-oriented regulation: The EU’s legal environment supports innovative and high-quality solutions, balancing investor and end-user protection with the opportunity to develop a legal crypto business.
• Cross-border operation rights: The cryptocurrency license grants “passporting rights,” allowing companies to provide services across the EU without needing a separate license in each member state.
• Access to banking services: Licensed companies can cooperate with banks and payment providers in the EU and carry out fiat-to-crypto and crypto-to-fiat transactions without major obstacles.
• Cost and time optimization: MiCA eliminates duplication in the licensing process and standardizes requirements across EU countries, reducing compliance costs and timeframes.
• Reputational stability: Holding a Europe license boosts trust from partners, clients, and regulators, making it easier to conduct business and enter international markets.
• Technological reliability: Licensed companies must use robust IT systems, ensure secure asset storage (including backup wallets), and maintain a transparent audit trail of operations.

Thus, a European crypto license is not just a permit to operate but a valuable strategic asset for any company aiming to grow or scale its business within Europe’s dynamic crypto ecosystem.

Prifinance licensing support ensures an efficient process fully aligned with regulatory requirements, minimizing risks and accelerating market entry in the EU. With experience in VASP projects and deep knowledge of the regulatory framework, Prifinance specialists provide comprehensive legal and operational assistance at every stage of license acquisition.

• 
  Finland

  Focus on security

  Advantages:

  • IT infrastructure
  • Reliable protection
  • High standards

  Timeframe:

  from 5 months

  Taxes:

  20%

  More Detailes
• 
  Ireland

  English-speaking financial center

  Advantages:

  • Corporate benefits
  • Transparent procedures
  • Low tax 

  Timeframe:

  from 4 months

  Taxes:

  12.5%

  More Detailes
• 
  Lithuania

  Fast processing

  Advantages:

  • Transparent requirements
  • Banking cooperation
  • Low tax

  Timeframe:

  from 3 months

  Taxes:

  15%

  More Detailes
• 
  Italy

  Growing market

  Advantages:

  • Strong financial environment
  • Crypto support
  • High demand

  Timeframe:

  from 5 months

  Taxes:

  24%

  More Detailes
• 
  Germany

  Strict BaFin control

  Advantages:

  • Reliable regulator
  • HODL tax benefits
  • Regulatory stability

  Timeframe:

  up to 12 months

  Taxes:

  15% + surcharges

  More Detailes
• 
  Netherlands

  Fintech and DLT hub

  Advantages:

  • DLT focus
  • IT expertise
  • Banking support

  Timeframe:

  from 4 months

  Taxes:

  25%

  More Detailes

MiCA and global alternatives: What should businesses choose?

When selecting a suitable jurisdiction for obtaining a cryptocurrency license, companies must consider the differences between the European regulatory model and similar frameworks in other major global regions. The European Union, particularly under the MiCA regulation, offers significant advantages – both in terms of well-structured regulatory planning and access to a large, unified market.

However, despite these competitive strengths, there is growing competition from other regions that are also developing licensing and regulatory infrastructures for crypto-related activities. Therefore, a comparative analysis is a critical step in making a strategic decision about jurisdiction.

Key takeaways

Europe offers one of the most extensive and business-friendly regulatory models in the cryptocurrency sector. A unified and harmonized legal framework allows companies to clearly define jurisdictions for operations in any EU member state. The introduction of MiCA reinforces this effect, enabling companies to legally provide crypto asset exchange services throughout Europe, with access to millions of clients and an established financial infrastructure.

In comparison with other jurisdictions, the EU approach stands out as follows:

• USA: The market remains strictly regulated and highly dependent on licensing. Compliance often requires creating dedicated roles, leading to additional delays and costs.
• Singapore: Still a key hub for Asian markets, but imposes high compliance requirements and relatively high licensing fees.
• Malta: Has built an effective and attractive licensing and legal framework for the crypto sector, especially for companies targeting EU markets. However, it also involves compliance-related expenses.
• Offshore jurisdictions: Offer fast and low-cost licensing but are often not recognized by major regulators, have limited access to banking services, and lack market legitimacy.

Overall, the regulatory clarity, EU market access, and operational efficiency provided by MiCA make the European crypto license particularly attractive for companies seriously focused on developing in the virtual asset sector.

Requirements for obtaining a crypto license in Europe

Obtaining a cryptocurrency license in Europe under the MiCA Regulation requires a company to meet a detailed list of legal, financial, and operational conditions. These requirements are designed to ensure market integrity, client protection, and the stability of the financial system.

Companies must provide proof of compliance with key criteria, including the implementation of AML (Anti-Money Laundering) and KYC (Know Your Customer) procedures.

Main requirements include:

• Company registration: The company must be officially registered in an EU country and have a registered office that is operational within Europe.
• Capital requirements: Minimum share capital depends on the services provided. Measures must also be in place to ensure financial stability and the ability to meet obligations to crypto asset users.
• Management structure: Qualified directors must be appointed, including a compliance officer, a risk manager, and a financial director.
• AML / KYC: The organization must implement a comprehensive anti-money laundering program and a customer verification policy. Compliance with these procedures must be continuously monitored.
• Business plan: A detailed business plan must be submitted to the regulator, including a description of crypto services, market entry strategy, risk management, and compliance procedures.
• IT and security: Secure digital platforms and wallets must be implemented. Systems for transaction monitoring and data protection must be in place to ensure the safety of all operations.
• Regulatory reporting: Reports must be submitted to the regulator on time. This requires transaction tracking systems, operational management tools, and audit capabilities.
• Application documents: The document package must include ID verification for beneficiaries, directors, and shareholders.
• Fee payments: Both registration fees and annual regulatory fees set by the relevant EU authority must be paid.
• Client protection: Client funds must be protected through asset segregation and secure wallet infrastructure.

These conditions ensure that companies providing crypto exchange or virtual asset services operate within a clear regulatory framework and maintain high operational standards, fostering client trust and financial resilience in the rapidly growing crypto economy.

Registration of a crypto company in Europe: Stages and timeline 

The process of obtaining a cryptocurrency license in Europe under the MiCA regulation includes clearly defined stages overseen by authorized regulatory bodies. These steps aim to ensure proper compliance and legal transparency.

The duration of each stage may vary depending on several factors, including the complexity of the intended activity and the completeness of the applicant’s documentation.

Key stages of obtaining the cryptocurrency license include:

1. Pre-licensing consultation
   Companies typically begin with preliminary consultations with the regulator to clarify applicable requirements based on the nature of crypto services and the selected jurisdiction.
2. Application preparation
   At this stage, a complete set of company information is compiled, including a business plan, AML/KYC policies, IT security measures, details of compliance officers, governance structure, and shareholder composition.
3. Application submission
   Once all documents are prepared and applicable fees are paid, the application is submitted to the competent regulatory authority of the respective jurisdiction.
4. Application review
   The regulator reviews the submitted materials, which may include a due diligence check on directors and shareholders.
5. Interviews and inspections
   The regulator may schedule interviews with company staff and conduct IT system inspections to verify technical readiness and staff qualifications.
6. Conditional approval
   If the application meets the preliminary requirements, the company may receive conditional approval, pending final checks before commencing operational activities.
7. Issuance of final license
   After fulfilling all conditions, the licensing authority issues the official crypto license, confirming the company’s legal right to offer the relevant services in the specific EU member state.
8. Ongoing supervision and compliance
   Once licensed, the company is required to meet all maintenance obligations, including submitting regular reports, undergoing audits, and notifying the regulator of any significant changes in structure or operations.

Typical timeline:

Factors affecting the duration include the quality of documentation, responsiveness to regulatory inquiries, and the complexity of the proposed crypto services.

Taxation of cryptocurrency companies licensed in Europe

Taxation is a crucial aspect of operating any company holding a cryptocurrency license in Europe. While the MiCA regulation lays the groundwork for harmonizing the tax environment across the EU, actual tax obligations depend on the legislation of the specific country.

When operating under a crypto license, the following key tax considerations must be taken into account:

• Corporate Tax: In most European countries, profits earned by licensed crypto companies are subject to corporate tax ranging from 15% to 25%, depending on the jurisdiction.
• Value Added Tax (VAT): Under EU law, many cryptocurrency operations, including exchange services, are exempt from VAT, which helps reduce the administrative burden for crypto businesses.
• Capital Gains Tax: Profits from crypto asset transactions are generally taxed under standard corporate income tax rules. For individuals, capital gains tax on crypto transactions may vary based on national legislation.
• Withholding taxes: Cross-border transactions conducted by crypto companies may be subject to withholding tax at the source. However, in many cases, the rate can be reduced due to bilateral double taxation treaties.
• Tax compliance: Licensed companies must maintain accurate financial records, submit timely tax reports, and properly document all cryptocurrency-related transactions. Transparency and good faith compliance are key to maintaining proper tax status.
• Tax incentives: Some EU jurisdictions offer tax benefits to attract fintech and digital asset businesses. These may include reduced corporate tax rates or even tax holidays for crypto service providers.

Thus, every licensed crypto company in Europe must consider not only MiCA provisions but also national tax regulations, ensuring full compliance with fiscal requirements in the specific EU member state where it operates.

Typical tax rates in Europe

It is crucial to assess the tax implications of obtaining a cryptocurrency license in Europe. Professional tax planning can help a business remain compliant with regulatory requirements while achieving its desired financial outcomes, paving the way for sustainable growth.

Key facts about obtaining a crypto license in Europe

Expert team with VASP and MiCA experience

Behind every successfully obtained cryptocurrency license is a team of experts. Prifinance specialists are lawyers and financial analysts with in-depth knowledge of European regulation, including MiCA requirements and VASP licensing practices. We work with digital asset projects and support clients at every stage - from business structuring to communication with regulators. Experience in international jurisdictions, attention to detail, and efficient execution enable us to achieve results valued by clients worldwide.

Nikolai TimofejevExpert with 15 years of experience in FinTech, payments, and business strategy.

Oleksii KindratenkoExpert in company registration, financial licenses, AML and tax consulting.

Eugeniu BevziucInternational business consultant with experience in company setup, remote work, and multilingual communication.

Legal access to the EU cryptocurrency market begins with the first step – take it with Prifinance.

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FAQ

1. What is a crypto license in Europe?
   It is an official authorization granting the right to operate in the cryptocurrency sector (exchange, wallets, custody, and other digital asset services) in accordance with the MiCA Regulation.
2. What types of activities does the European crypto license cover?
   These may include: cryptocurrency exchange, wallet provision, asset custody, crypto asset management, and payment services related to virtual currencies.
3. How long does it take to obtain a license?
   The timeline depends on the company’s preparedness and the complexity of the business model. Typically, the process takes from 3 to 9 months.
4. What is the required share capital?
   Minimum requirements vary depending on the country and type of services: from €125,000 to €730,000.
5. Is it mandatory to have a physical office in the EU?
   Yes. In most EU jurisdictions, it is required to have an office and staff physically located in the EU to meet substance requirements.
6. Can a foreign company obtain a license?
   Yes, it can. However, it must comply with local rules, including appointing resident directors and employees in the licensed office.
7. What obligations arise after obtaining the license?
   The company must maintain AML/KYC procedures, submit regulatory reports (financial, risk-related, etc.), undergo annual audits, and comply with IT security requirements, especially when handling user data.
8. Does one license allow operation across the entire EU?
   Yes. Under MiCA, a single license issued in one EU member state allows the company to operate in all other EU countries without obtaining additional licenses.
9. How is the activity of licensed crypto businesses regulated?
   Regulation is focused on consumer protection, financial stability, and market integrity. Supervision is carried out by national regulators in accordance with MiCA.
10. What are the consequences of operating without a license?
    Operating without a license is illegal. Possible consequences include heavy fines, business closure, reputational damage, and civil or criminal liability.