Cryptoasset firms operating across both the EU and UK face the challenge of navigating two distinct but related regulatory frameworks. The EU's Markets in Crypto-Assets Regulation (MiCA) has been fully applicable since December 2024, while the UK's FSMA-based cryptoasset regime takes effect in October 2027. This article provides a practical, requirement-by-requirement comparison to help firms develop an efficient dual-market compliance strategy.
Authorisation and Licensing
MiCA (EU). Cryptoasset service providers (CASPs) must obtain authorisation from the national competent authority in their home EU member state. MiCA defines ten categories of cryptoasset services, and authorisation is granted on a service-by-service basis. Once authorised, CASPs can passport their services across all EU member states. The authorisation process varies by member state but typically takes 3–6 months.
UK FSMA regime. Cryptoasset firms must obtain FSMA authorisation from the FCA. The UK regime defines regulated activities relating to qualifying cryptoassets, covering exchange, custody, dealing, arranging, advisory and other activities. There is no passporting from the UK to the EU — firms must obtain separate authorisation in each jurisdiction. The FCA gateway opens September 2026 with applications expected to take 6–12 months.
Capital Requirements
MiCA. Capital requirements are set directly in the regulation, ranging from €50,000 to €150,000 in initial capital depending on the services provided. Ongoing own funds requirements include a percentage of revenue and fixed overheads calculations.
UK. The FCA will set capital requirements in its rules, drawing on principles from MIFIDPRU (for investment firm-like activities) and the PSRs 2017 (for payment-like activities). Specific requirements are expected to be published in FCA consultation papers during 2026, but firms should expect requirements broadly comparable to MiCA, with potential variations for custody services.
Conduct of Business
Both regimes impose conduct of business requirements covering fair treatment, clear communications, conflicts of interest, and complaints handling. MiCA's conduct requirements are detailed in the regulation itself and supplemented by technical standards. The UK regime will apply existing FCA conduct rules — including the Consumer Duty — to authorised cryptoasset firms.
The key practical difference is the UK Consumer Duty, which goes beyond MiCA's conduct requirements in several areas — requiring firms to demonstrate that products deliver good outcomes, provide fair value and support customer understanding. Firms operating in both markets should design their conduct frameworks to meet the Consumer Duty standard, which will likely exceed MiCA requirements in most areas.
Stablecoin Regulation
MiCA. Creates two specific categories: asset-referenced tokens (ARTs) and e-money tokens (EMTs). ARTs require specific authorisation; EMTs must be issued by credit institutions or EMIs. Both categories have detailed reserve, redemption and disclosure requirements.
UK. The UK is integrating stablecoins into its existing payments framework rather than creating standalone categories. Fiat-backed stablecoins used for payment purposes are expected to be regulated as electronic money or under the payment services regime. Reserve requirements will likely mirror e-money safeguarding standards.
AML and Financial Crime
Both MiCA and the UK regime require comprehensive AML/CFT frameworks. MiCA brings CASPs within scope of the EU's AML Directives, while the UK regime will continue to apply the MLRs 2017 (as updated for FSMA-authorised crypto firms). The Travel Rule for crypto transfers applies in both jurisdictions.
Developing a Dual-Market Strategy
Firms operating in both markets should:
- Map the requirements of both regimes side by side for each area of compliance.
- Identify the higher standard for each requirement and build the compliance framework to that standard.
- Implement a unified technology and governance infrastructure that can serve both regulatory environments.
- Maintain jurisdiction-specific policies where the regimes diverge (e.g., stablecoin classification, specific reporting requirements).
- Engage with regulators in both jurisdictions early in the authorisation process.
Regulatory Counsel advises cryptoasset firms on dual-market regulatory strategy, MiCA compliance and UK FSMA authorisation. Contact us for a free initial consultation.
Frequently Asked Questions
No. There is no passporting arrangement between the EU and UK for cryptoasset services. Separate authorisation is required in each jurisdiction.
Both regimes are comprehensive. The UK Consumer Duty is generally more demanding on conduct standards, while MiCA provides more detailed capital requirements. Firms should build to the higher standard.
MiCA has been fully applicable since December 2024. The UK FSMA regime takes effect in October 2027, with the FCA gateway opening September 2026.
Yes. MiCA creates specific ART and EMT categories. The UK integrates stablecoins into its existing payments regulatory framework. Firms issuing stablecoins in both markets must comply with both approaches.