MiCA Goes Global: How to Stay Ahead with a Future-Ready Compliance Strategy

What Is MiCA?

At the end of 2024 and just weeks after the crypto market reached an all time high of $3.7 trillion in market cap, the full suite of Markets in Crypto-Assets (MiCA) regulations took effect in the European Union (EU). This landmark legislation is an expansive framework that aims to harmonise laws related to crypto-assets across the EU and sets a precedent for the rest of the world.

Until recently, European markets relied on a patchwork system of crypto regulations that could easily be exploited by fraudsters and created compliance uncertainties for crypto-asset service providers (CASPs). Spearheaded by the European Commission, MiCA was proposed as part of a broader Digital Finance Package to help modernise the region’s economy while ensuring consumer protection, and combating both money laundering and terrorist financing. MiCA gives firms a clear framework for those firms that fall under its definition to become licensed to operate in all 27 EU member states.

Why MiCA Matters Well Beyond Europe

One of the biggest draws to cryptocurrency is its inherently decentralised nature, which allows for easy transfers between parties virtually anywhere in the world without the need for a single, fallible third party. However, operating globally does require meeting the most stringent regulatory denominator, which, as of now, is MiCA. If CASPs wish to continue to operate globally including in the EU, they need to comply with the new regulations, lest they face fines, de-banking, loss of customer trust, forced restructuring. Other countries and regions are already looking at the EU and MiCA as a blueprint for gold standard crypto regulations, much like what the GDPR did with data privacy regulations.

Shufti’s Approach to Supporting MiCA KYC and KYB Requirements

As a global identity verification leader, Shufti has been closely advising our crypto customers on meeting MiCA requirements. Under MiCA, CASPs are expected to verify the identity of customers, understand the nature of the business relationship, and assess the risk profile.

Shufti can support this by providing eKYC and Identity Verification, offering AI-driven ID verification, document validation, and biometric checks to confirm user identities efficiently and accurately, AML screening, running sanctions, PEP (politically exposed persons), and adverse media checks during onboarding to flag high-risk individuals.

At Shufti, we see MiCA as one in a series of regulatory shifts to include a majority of the crypto asset industry into wider financial ecosystems around the world. And those who can operationalise this new wave of regulations, will gain competitive advantage in the market.

What Types of Preparations Should CASPs Make?

To any extent possible – be proactive, not reactive! While it may introduce some upfront and recurring costs, adopting future-proof standards will ensure compliance for years to come and will help attract other operations that want to work with well prepared partners. Here are steps to consider:

1. Strategically Plan for Compliance

Conduct Readiness Assessments – Companies are reviewing their existing AML/KYC programs to identify where they fall short of MiCA’s new standards. These gap analyses help firms pinpoint areas that require updates or additional controls.

Implement Reforms in Advance – Rather than waiting for the regulation to take full effect, many firms are acting now to reinforce their internal compliance structures. This proactive stance helps minimise the risk of disruption once MiCA becomes fully enforceable.

Hire Specialists – Legal and compliance professionals with expertise in EU financial regulation and crypto law are increasingly being brought in to guide implementation and ensure accurate interpretation of the rules.

2. Find Technology-Driven Solutions and Expertise

Process Automation – Crypto firms are deploying automated systems to handle routine compliance tasks such as Identity Verification, AML Screening, KYB (including PEPS and Sanctions checks on UBOs). Automation not only enhances speed but also reduces the risk of human error. Look for providers who can balance MiCA compliance with localisation in the EU’s 27 member countries, and beyond.

Advanced Risk Monitoring Tools – Companies are integrating sophisticated risk-screening technologies to identify high-risk transactions and customer behaviors, especially those involving high-risk jurisdictions or politically exposed persons (PEPs).

Risk Assessment for Compliance – To gain better oversight, businesses are using risk assessment tools that turn compliance data into actionable insights. These tools help detect patterns, flag anomalies, and support ongoing risk assessments.

3. Standardise and Engage with Authorities

Establish Uniform Policies Across Markets – Firms operating in multiple EU countries are working to standardise their AML/KYC practices in line with MiCA’s goal of regulatory harmonisation across the bloc.

Develop Stronger Risk Frameworks – MiCA encourages the adoption of more comprehensive risk-based approaches. In response, crypto businesses are refining their risk management strategies to include clear escalation protocols and regular internal reviews.

Engage with Regulators – To stay ahead of evolving expectations, some companies are actively engaging with regulators, participating in consultations, and seeking feedback on their compliance frameworks.

EU’s MiCA legislation is just the beginning of a new era for compliance in the crypto industry. Businesses that prepare now will navigate entering new markets with confidence and building successful relationships that last.

Here at Shufti, we can help you adapt to MiCA and other new KYC/AML regulations, while continuing to support your company’s growth worldwide.

Learn More About Shufti’s Solutions for the Crypto Industry or Schedule a Demo on MiCA Compliance