Taking a closer look at the new Markets in Crypto-Assets Regulation

Scope

MiCA's scope encompasses anyone involved in the issuance of crypto-assets and those offering services related to such assets within the European Union. It is also essential to recognize that MiCA extends its relevance to crypto-assets that do not fall within the definition of financial instruments outlined by MiFID II.

Crypto-Assets

Types of Crypto-Asset

MiCA makes provision for the following types of crypto-assets;

CASPs

CASPs are entities or undertakings whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis. CASPs will fall within several categories defined within MiCA and will be required to obtain licenses when providing any of the below activities, thus leading to the establishment of a unified EU licensing regime for CASPs:

The custody and administration of crypto-assets on behalf of third parties

• The operation of a trading platform for crypto-assets
• The exchange of crypto-assets for funds
• The exchange of crypto-assets for other crypto-assets
• The execution of orders for crypto-assets on behalf of third parties
• Placing of crypto-assets
• Providing transfer services for crypto-assets on behalf of third parties; the reception and transmission of orders for crypto-assets on behalf of third parties
• Providing advice on crypto-assets
• Providing portfolio management on crypto-assets

Salient features of MiCA

MiCA will push through the following requirements:

• The publication of whitepapers by the issuers of crypto-assets
• The disclosure of the energy consumption and environmental impact of crypto businesses
• Requiring issuers of stablecoins to maintain adequate reserves
• The creation a market abuse regime
• Requiring traceability of senders and beneficiaries to combat tax evasion and money-laundering
• Empowering competent supervisory authorities within member states to oversee and enforce MiCA

When does MiCA come into force?

The Regulation was published in the Official Journal of the European Union on June 9, 2023.

Timeline

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Over the coming months we will release a series of articles that delve deeper into MiCA through expert opinion and analysis. Join us for a comprehensive breakdown and enhanced understanding of this key new regulation.

Apex Group Can Help

We can help you stay compliant with the latest regulations and protect your business from financial crime. Get in touch for further information on:

• Crypto/Virtual asset/ VASP-CASP licensing
• Crypto-assets Due Diligence services
• Crypto AML compliance support
• Crypto Compliance Training