How the managers are assessed within the MiCA application?

Are you sure your CEO meets MiCA requirements? Your application can still be rejected even if your company has a clear strategy, a solid business model, and full AML compliance. EU regulators closely examine professional experience, reputation, criminal records, conflicts of interest, and even the actual level of involvement in day-to-day operations. Why has management become such a critical focus under MiCA? In this article, we’ll explain what standards apply, what documents you’ll need to prepare, and how to reduce rejection risks.

Why are managers assessed under the MiCA framework?

Manager assessment is a key part of the MiCA regulatory framework. The main goal is to ensure that decision-makers have the right knowledge, experience, and reputation to run a crypto business legally and responsibly.

The assessment helps to:

1. Confirm that managers have sufficient professional qualifications
2. Evaluate their integrity and reputation
3. Check for conflicts of interest or past misconduct
4. Ensure they can meet MiCA compliance requirements
5. Prevent the involvement of nominees or untrustworthy individuals

Regulators view managers as the first line of defense for investor protection and the stability of the EU crypto market. That’s why the assessment applies not only during the initial registration of a company but also when there are major management changes.

Key criteria for assessing the suitability of managers

The MiCA regulations set out clear requirements for the professional and personal suitability of all persons in the management team of crypto companies.

Reputation and criminal record

Regulators expect managers to have a clean and trustworthy reputation. The assessment includes background checks for criminal records, especially fraud, money laundering, or financial crimes, disciplinary actions by regulators, and involvement in corporate scandals. Even past administrative violations can be an issue if they relate to the manager’s professional conduct.

Professional experience and qualifications

Managers must show relevant experience in finance, crypto, investments, law, or other relevant sectors. Particular attention is given to strategic management roles, building internal control systems, and risk management responsibilities.

Conflict of interest

Candidates must avoid holding positions that could influence their decisions. Conflicts of interest include:

• Roles in competing companies
• Financial stakes in related entities
• Family or close ties within the organization etc

AML/CFT and compliance knowledge

MiCA places a strong focus on anti-money laundering (AML) and counter-terrorist financing (CFT). Managers should understand:

• AML/CFT legal basics
• How to manage internal risks and regulatory compliance

Level of involvement in operations

Managers must be actively involved in the business and devote at least 50% of their time to the company.. Regulators look at meeting records, participation in key decisions, and the manager’s engagement with core company processes to ensure they are not just nominal figures.

Procedure for assessing managers within the MiCA application

The evaluation of managers follows several key steps:

1. Submission of individual profiles. Each manager must provide a personal file that includes their biography, work experience, criminal record certificate, reference letters, and proof of qualifications.
2. Competence and involvement review. Applicants must show they are actively involved in management. This includes job descriptions, decision-making responsibilities, and evidence of participation in company operations.
3. Conflict of interest check. Managers must disclose any outside business interests, current roles in other companies, and connections to related entities.
4. Final decision. The national regulator issues a formal opinion on whether each candidate meets MiCA requirements.

Although MiCA sets EU-wide standards, the actual review is carried out by national authorities such as BaFin (Germany), AMF (France), CONSOB (Italy), and others. These regulators examine the documents, request additional information if needed, and make the final decision to approve or reject the application.

Documents required by regulator

Supervisory authorities usually require the following documents:

• A detailed CV showing education, work experience, and current duties
• Criminal record certificates from countries where the person lived in the past 5–10 years
• Reference letters from former employers or business partners
• Proof of qualifications, such as diplomas, certificates, and licenses
• Declarations of no conflict of interest, including full disclosure of current affiliations
• Documents confirming financial reliability — data on bankruptcies, lawsuits, or other legal issues

In some cases, documents must be notarized and apostilled, officially translated into the language of the relevant country.

Common reasons for rejection of MiCA applications due to management

Even with well-prepared documents, companies may face MiCA registration refusals. One of the most common reasons is that the proposed managers do not meet regulatory standards. Here are the main reasons:

Lack of relevant experience

Regulators expect managers to have:

• Practical experience in finance, crypto-assets, compliance, or regulatory environments.
• Understanding of European regulations, including MiCA and AMLD.
• Skills in decision-making and governance within a supervised setting.

If key persons lack this background, regulators may see it as a risk to investors and deny approval.

Links to offshore jurisdictions or sanctioned entities

Connections with offshore structures, work in companies involved in scandals or investigations, or ties (direct or indirect) to individuals on sanctions lists may raise red flags. Regulator focuses strongly on the transparency of capital sources and business history.

Lack of real control by the declared persons

Sometimes, applicants list well-known consultants or nominal directors, while others control the business. This is considered a serious violation. Signs of fake management include mismatched contact details, low involvement in operations, and inability to answer regulator questions properly.

How to prepare for management audits?

To reduce the risk of rejection, companies should start preparing early. This includes internal checks, external audits, and proper documentation of manager profiles.

Internal due diligence and compliance screening

Before applying, conduct an internal review of each manager:

• Confirm there are no criminal records or sanctions
• Check relevant experience, degrees, and certifications
• Make sure the candidate’s profile fits the role and business model
• Identify any conflicts of interest, such as ties to competitors

Collect this information in a single file to support the MiCA application process.

Use of external legal audit

Independent legal review is also important. Experienced specialists can detect weak points that internal teams may miss. They assess the manager’s compliance with MiCA, AML/CFT rules, and national requirements. Regulatory advisors can also suggest how to reframe problematic parts of a biography and avoid mistakes in formal documents.

Tips for properly presenting biography and experience

Many applications face delays due to poorly written CVs and documents. To avoid this:

• List all past roles with exact dates and job titles
• Highlight experience in risk management, AML compliance, and regulated industries
• Attach references, diploma copies, and certificates (translated and notarized if needed)
• Use a consistent format and structure across all documents to simplify review
• Make sure that the provided information matches the data that is in the public domain or social networks of the applicant

Well-prepared documentation not only helps pass the assessment on the first try but also builds a strong reputation with regulators.

How Key2Law helps companies pass management audits?

Key2Law team has extensive experience supporting MiCA license applications. We understand how important the role of managers is in the approval process and offer full support at every stage of the assessment.

We assist clients in selecting qualified candidates, conducting initial due diligence, and properly documenting the experience, qualifications, and business reputation of each manager. Our team prepares templates for CVs, recommendation letters, and fitness and propriety statements. We also handle communications with regulators if they request additional information.

If you want to pass the assessment with minimal delays or legal risks, contact Key2Law. We will build a tailored strategy for your project and make sure you meet all MiCA requirements. Book a consultation today and take the next step toward stable operations in the EU.