Obtaining a MiCA License in Italy

The EU Regulation 2023/1114, also known as MiCA (Markets in Crypto-Assets), controls the whole crypto market in Italy as of July 1, 2025. It's now official: if you want to offer crypto-related services in Italy, you need to have a valid MiCA license right now. This marks the end of the temporary phase. Whether you’re a local startup or an international player, you can apply—provided your business is formally registered in Italy. From now on, only firms that meet the EU’s regulatory benchmarks can legally operate in this space.

Who Can Apply for a MiCA License in Italy—and What’s Required

Being licensed under MiCA is more than a formality. It means your company has met demanding standards regarding financial soundness, organizational setup, IT infrastructure, cybersecurity practices, risk controls, and internal audit systems. The law mandates that any business dealing in digital assets—custody services, asset management, token issuance, stablecoins, or Web3-related operations—must go through this process.

To legally access the Italian crypto market, applicants must establish a legal entity in the country and fully disclose their operations. The licensing procedure is overseen by Italy’s securities authority, Consob, in cooperation with the Bank of Italy. But it’s not just paperwork—it’s a multi-layered approval process that includes:

• Explaining where your capital comes from and who owns the business
• A full breakdown of your services and business model
• An effective AML/CTF policy in place
• Strong internal controls and independent audit systems
• A detailed description of your IT environment and how you protect user data
• Identification of key decision-makers and corporate governance roles

How Foreign Companies Can Obtain a MiCA License in Italy: Key Entry Conditions for the Crypto Sector

For companies based outside the EU, the road to a MiCA license in Italy involves more than just filling out paperwork. These businesses must factor in the added complexity of cross-border compliance, mandatory local registration, and establishing a real operational footprint within Italian territory. In practice, that means setting up a domestic legal entity or forming a subsidiary that complies with local laws.

Why Getting a MiCA License in Italy Matters

Today, there is only one legitimate path for crypto service providers operating within the EU: obtaining a MiCA license. This is especially crucial for companies aiming to work with institutional investors, support fiat gateways, partner with banks, or access cross-border payment systems.

Italy offers distinct strategic advantages. As one of the EU’s top economies, it boasts a highly developed financial sector, a mature digital infrastructure, and an active, regulation-forward government. Italian authorities work closely with major EU supervisory bodies, including ESMA and the European Central Bank (ECB), which translates into:

• A high degree of alignment between local and EU-wide regulatory standards
• Faster integration of updated rules and technical frameworks
• Lower legal exposure for foreign founders and investors entering the Italian crypto market

Crypto Licensing in Italy: MiCA Service Categories and Compliance Scope

When applying for a MiCA license in Italy, the kind of services a company plans to offer shapes the entire regulatory process. Different activities fall under specific classifications, each carrying its own compliance thresholds — including capital reserves, technical architecture, and internal control protocols. Here's a closer look at the categories that fall under MiCA oversight in Italy.

Custodial Asset Services – Holding Digital Assets for Clients

Firms offering custody solutions must prove they can securely store and protect digital assets on behalf of users. This includes the ability to restore access and a clear line between company and client holdings. The standard of care must reflect practices found in the banking sector, with airtight infrastructure and fraud prevention.

Trading and Exchange Operations – Executing Client Orders

If a company plans to execute trades, swap assets, or facilitate buying/selling on behalf of others, it falls under this group. These providers must operate with full transparency, meeting execution-quality standards that mirror those of regulated financial brokers.

Marketplace Access – Enabling Digital Asset Trading

Running or facilitating access to trading interfaces — where users place orders or interact with liquidity pools — qualifies a business as a platform operator. Such companies face strict rules, similar to those applied to traditional financial markets, with additional responsibility to maintain orderly trading environments.

Complementary Crypto Services – Analysis, Consulting, and Payments

This broader category includes crypto consulting, market research, deal support, and multi-currency transaction services (including fiat options). Companies offering these may require both a MiCA license and additional authorization under the EU’s payment services frameworks.

Full Guide to Obtaining a MiCA License in Italy: Entering the EU Crypto Market Without Legal Risks

Before submitting any official application, a company must go through an in-depth readiness assessment. This includes legal, financial, technical, and organizational due diligence. Regulators will focus on the following elements:

• Ownership and control transparency – Are the ultimate beneficial owners clearly identified and is the corporate structure fully compliant with transparency standards?
• Business model alignment – Does the intended activity fall under the categories outlined in the MiCA framework?
• AML/KYC protocols – Are adequate procedures in place to mitigate money laundering risks and verify user identity?
• IT architecture – Is the platform reliable, secure, and fit for purpose?
• Internal governance – Are independent control and risk management systems functioning properly?

If inconsistencies are discovered at this stage, they must be resolved prior to compiling the licensing dossier. Any shortcomings in structure or documentation can delay or derail the process entirely.

How Long Does It Take and What Does It Cost?

The timeline for securing a MiCA license in Italy ranges from 4 to 9 months, depending on the quality of the submission, workload at the regulator, and whether revisions are needed.

Total licensing costs typically range from €100,000 to €300,000, depending on the complexity of the business model and how well-prepared the applicant is. Expenses may include:

• Legal support throughout the entire licensing process
• Independent audit and compliance consulting
• Development of internal risk, AML, and IT policies
• Government and administrative fees

For businesses serious about entering the EU crypto space legally, this investment secures not only regulatory clarity but also credibility in the eyes of partners, banks, and users.

Capital Requirements for MiCA License Applicants in Italy

Firms intending to provide crypto-asset services under MiCA in Italy must meet specific capital thresholds, which differ depending on the type of service being offered. The regulation distinguishes between three categories of entities:

• Asset-Referenced Token (ART) issuers
• Electronic Money Token (EMT) issuers
• Crypto-Asset Service Providers (CASPs)

There are base cash requirements for each of these groups, and these requirements go up as the risk level and complexity of the service go up. CASPs are further broken down by what they do for a living.

Companies offering multiple services must maintain capital at or above the highest applicable minimum among the selected categories.

The required capital must be fully paid and either held in cash or high-liquidity financial instruments with no encumbrances.

On top of the initial capital injection, companies must maintain own funds that cover a percentage of their fixed overhead costs, usually no less than 15%, ensuring continued compliance with MiCA requirements over time.

Neglecting these financial thresholds can result in delayed licensing, regulatory intervention, or enforcement actions, including license revocation.

How to Obtain a MiCA License in Italy: Key Legal, Financial, and Operational Requirements

Companies in Italy that want to be approved as a CASP (Crypto-Asset Service Provider) under the MiCA system must show that they are completely open, have a good financial situation, and build their business in a way that meets European standards.

Transparent Source of Funds

In addition to proof of minimum capital contributions, Italian regulators require detailed disclosure of all funding sources. This includes documentation on the origin of funds, tax compliance records, identities of controlling parties, and supporting evidence confirming the lawful structure of capital inflows.

Operational Substance and Local Governance

Simply incorporating a legal entity in Italy is not sufficient. Applicants must establish a real and continuous presence in the country. This presence may be demonstrated through:

• A physical office located in Italy
• Local management personnel conducting day-to-day operations from within the country
• Business decisions and governance carried out directly from the jurisdiction of registration

A clear and robust corporate governance structure is mandatory. Companies must appoint experienced directors and senior executives with backgrounds in finance or technology, as well as a dedicated compliance officer responsible for ongoing regulatory adherence.

Legal Documentation and Regulatory Protocols: From KYC to GDPR

Prior to receiving regulatory approval, applicants must prepare a full set of legal documents addressing all dimensions of the business. These include:

• Business Model Description – outlining the crypto services offered, user engagement plans, and types of digital assets to be handled
• AML/CFT Policy – internal rules for transaction monitoring, client verification, and suspicious activity reporting
• KYC Protocols – including identity verification procedures, source-of-funds checks, and client classification methods
• Data Protection Measures – policies aligned with GDPR, covering encryption, retention schedules, access control, and the appointment of a Data Protection Officer (DPO)
• Risk Identification and Mitigation – this section describes organizational, market, and hacking threats, as well as ways to avoid or deal with them.

Technical and IT Infrastructure

The MiCA framework also places significant emphasis on the technological environment supporting crypto operations. Applicants must prove they have a stable and secure IT architecture. This includes:

• Custodial systems with multi-layer security
• Backup solutions and recovery plans (e.g., Disaster Recovery, Business Continuity Plans)
• Real-time monitoring for transaction anomalies
• Internal tools for cyberattack detection and incident response

The goal is to ensure continuity of service, data integrity, and the protection of client assets even under adverse conditions.

Beneficial Ownership and Investor Verification

Italian authorities require full transparency regarding company ownership — all the way up to the ultimate beneficial owners (UBOs). For firms involving foreign stakeholders, enhanced due diligence is conducted. This may involve:

• Financial screening of non-resident investors
• Examination of links to offshore jurisdictions
• Assessment of exposure to political or sanctions-related risks

This layer of scrutiny aims to safeguard the Italian crypto market from money laundering, external interference, or reputational threats tied to opaque ownership structures.

Taxation of Crypto Companies Holding a MiCA License in Italy

Once a company secures a MiCA license in Italy, it is automatically considered a tax resident of the country. This status subjects the firm to Italy’s standard fiscal framework, covering both national and regional tax obligations.

The base corporate income tax (IRES) rate stands at 24%. In addition, a regional surcharge known as IRAP applies, the rate of which varies depending on where the business is formally registered and may go up to 3.9%. In total, companies typically face a combined corporate tax burden of up to 27.9%—noticeably above the EU average. However, this heavier load can be partially offset through:

• Access to Italy’s extensive network of double taxation treaties;
• Incentive programs designed to support tech-focused startups and innovation-driven businesses.

Value-added tax (VAT) is charged at a standard rate of 22%. Italian tax law enforces strict scrutiny over corporate relationships involving offshore entities. Of particular note are the Controlled Foreign Corporation (CFC) rules, which compel companies to disclose ownership in foreign affiliates based in low-tax jurisdictions.

To remain fully compliant under the MiCA regime, licensed crypto firms must:

• Identify and disclose their ultimate beneficial owners;
• Maintain a tangible business presence on Italian soil (known as “economic substance”);

Ensure clear visibility of income sources and ownership structures throughout the company chain.

Final Notes

Securing a MiCA license in Italy is not just a regulatory checkbox—it’s an essential step toward operating legally within the European crypto space, building long-term resilience, and gaining institutional trust. As of July 1st of this year, the licensing process has entered a new phase: only fresh applicants can now apply. Those entities that were listed in the national registries but didn’t submit an application in time have lost their legal standing and face removal from the system.

Legal help is no longer a nice-to-have—it's a must if you want to get into the Italian market or grow your business across the EU. Our team is ready to help you with every step of the licensing process, from making documents to representing you in front of the government. Getting your crypto business off on the right legal base is very important.