If you’ve been following the rollout of the Markets in Crypto-Assets Regulation (MiCA), you’ll know that staking has been one of the hottest topics. For those less familiar, staking is essentially when crypto holders lock up their tokens to help secure a blockchain network (like Ethereum’s proof-of-stake model) and, in return, earn rewards.
It’s popular with retail investors because it looks a bit like earning “interest” on crypto. And it’s attractive to service providers because offering staking-as-a-service can generate fees and keep clients engaged on their platforms.
But here’s the key question: are crypto-asset service providers (CASPs) in the EU allowed to stake their clients’ crypto for their own benefit under MiCA? The European Securities and Markets Authority (ESMA) has now given us a very clear answer.
ESMA’s Response
Article 70(1) of MiCA is crystal clear: CASPs that hold clients’ crypto “shall make adequate arrangements to (…) prevent the use of clients’ crypto-assets for their own account.”
In plain language, CASPs can’t take your crypto, stake it themselves, and keep the profits. This restriction applies even in cases where the client has explicitly provided consent.
So the short answer to the question is very simply no. MiCA does not allow CASPs to stake clients’ crypto for their own account (i.e., exclusively for their own benefit).
What About Staking-as-a-Service?
ESMA points to guidance already published by the European Commission (Q&A 2067): staking-as-a-service is allowed, provided the benefits are shared between the CASP and the client.
Which practically means that:
- The CASP stakes the crypto on behalf of the client,
- The client remains the ultimate owner of the staked assets,
- Rewards are split between the client (who put up the assets) and the CASP (as compensation for running the validator, covering costs, etc.).
So, while CASPs can’t treat client assets like their own, they can provide staking services in a structured, transparent way, as long as the arrangement is mutual in the sense that it benefits the client, not just the provider.
Acting in the Best Interests of Clients
Because CASPs under MiCA are regulated entities, ESMA reminds them that they must stick to high standards of conduct when offering staking-as-a-service. Specifically:
- Acting honestly, fairly, and professionally in the best interests of clients (Article 66(1)),
- Providing clear, fair, and not misleading information, including in marketing (Article 66(2)).
This means CASPs can’t bury fees in the fine print or use vague language in advertisements. They should clearly disclose:
- What percentage of staking rewards go to the client,
- What fees or commissions the CASP charges,
- Any third-party costs (e.g., if another provider is involved).
So, transparency is a crucial requirement in the above context.
Why This Matters
This clarification matters for two reasons, primarily:
- If you are a client handing over your crypto to a licensed EU CASP, they can’t just run off and stake it for themselves. You stay the owner, and you should benefit directly from the staking rewards.
- For CASPs, clear boundaries are set. Staking can be part of their business model, but it has to be structured as a client service, not a proprietary revenue stream. Those that try to “get creative” with client assets, run a significant supervisory risk.
The Bottom Line
ESMA’s message is straightforward: MiCA protects clients’ assets and CASPs can’t use them for their own profit, but they can provide staking-as-a-service if it benefits both sides.
For crypto investors in Europe, that means more clarity and safeguards. For CASPs, it means adjusting business models and communications to fit within MiCA’s framework, while being transparent about how rewards and costs are shared.
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