Crypto firms seeking authorization under the EU's Markets in Crypto-Assets (MiCA) regulation face stringent substance requirements that go beyond mere registration. MiCA mandates that firms demonstrate genuine operational presence within the EU, a standard many underestimate. This includes having effective management and control over operations, technology, and financial resources within the EU, rather than relying on external or non-EU entities. The European Securities and Markets Authority (ESMA) emphasizes that firms must have at least two senior executives overseeing daily operations, with a focus on internal governance and control over ICT infrastructure. Additionally, financial resilience is crucial, with capital requirements tied to operational risk rather than just minimum thresholds. These measures aim to prevent the establishment of 'letterbox' companies that lack substantial economic activity within the EU.