MiCA requires authorised custodians to protect client ownership and separate client assets from the custodian’s estate. The regulation creates no €100,000 crypto guarantee or EU investor compensation fund for CASP customers.
What MiCA does protect
Article 70 requires a CASP that holds client crypto assets or access keys to safeguard the client’s ownership rights. The safeguards must also apply if the provider becomes insolvent. The provider must not use client assets for its own account.
Custody providers must keep client crypto legally segregated from their own estate so that the provider’s creditors cannot claim it merely because the CASP fails. MiCA also requires custody policies, position statements and procedures to return assets. Custodians can be liable for losses caused by incidents attributable to them, subject to the regulation and the custody agreement.
What MiCA does not provide
ESMA warns that MiCA provides no comparable investor-compensation scheme if a crypto-asset service provider cannot return client crypto. Legal and operational requirements reduce some risks, but market, cyber, custody and insolvency risks remain.
- An EU-wide guarantee does not cover a fall in the market value of crypto.
- CASP insolvency does not trigger automatic repayment.
- MiCA gives no blanket guarantee against hacks, fraud or operational failures.
- MiCA protections do not cover products or providers outside MiCA’s scope.
What about euros held by an exchange?
Article 70 treats client money separately from crypto. A CASP that receives client funds generally has to place them with a credit institution or central bank by the end of the following business day. The CASP must keep the funds in an identifiable separate account. The separate-account rule safeguards client money.
Whether a particular euro balance is covered by a national deposit-guarantee scheme depends on the legal structure, account ownership and the institution holding the money. Do not assume that the familiar €100,000 bank-deposit guarantee automatically applies to a balance shown inside a crypto app. Read the client-money terms and identify the bank or payment institution involved.
MiCA licence versus bank licence
| Protection | MiCA CASP | Bank deposit |
|---|---|---|
| Client-asset segregation | Required for custody and client funds | Different banking and depositor rules apply |
| EU-wide compensation for crypto | No EU-wide compensation scheme | Crypto assets are ineligible |
| Deposit guarantee | A CASP licence creates no deposit guarantee | Eligible deposits can be protected under national schemes |
| Market losses | Market losses are not covered | Bank deposits are not traded crypto positions |
Checks before depositing
- Check whether the platform appears on the current MiCA exchange list. Then confirm the exact legal entity in the official CASP data.
- Check that custody is one of the services recorded for the entity’s MiCA route.
- Read how client crypto and fiat funds are held and segregated.
- Check whether the service is provided by the EU entity or a global affiliate.
- Keep records and avoid leaving more assets on a platform than you need to use.
A MiCA route applies to named services. The CASP licence guide explains the recorded scope and prudential safeguards.
Primary sources
The page was last reviewed 2 September 2026 and provides general information. Ask a qualified adviser about your legal, financial or investment decisions.