On 30 December 2024 the Markets in Crypto-Assets Regulation ("MiCA") became applicable to crypto-asset service providers ("CASPs") as well as offerors and persons seeking admission to trading of crypto-assets in the EU. Stablecoin issuers have been subject to MiCA since 30 June 2024.
Crypto-Asset Service Providers
Entities providing certain crypto-asset services within the EU are required to be authorised as CASPs. Types of crypto-asset services and activities covered by MiCA include:
- Providing custody and administration of crypto-assets on behalf of clients;
- Operation of a trading platform for crypto-assets;
- Exchange of crypto-assets for funds;
- Exchange of crypto-assets for other crypto-assets;
- Execution of orders for crypto-assets on behalf of clients;
- Placing of crypto-assets;
- Reception and transmission of orders for crypto-assets on behalf of clients;
- Providing advice on crypto-assets;
- Providing portfolio management on crypto-assets; and
- Providing transfer services for crypto-assets on behalf of clients.
CASPs authorised under MiCA will be subject to a range of obligations, including the prudential and conduct of business requirements under MiCA as well as other requirements, such as in relation to anti-money laundering.
Existing CASPs
Virtual asset service providers ("VASPs") which are registered with the Central Bank of Ireland and operating in Ireland as a VASP by 30 December 2024, may avail of a transitional period of 12 months or until they are granted a CASP authorisation, whichever is sooner. These entities can continue to provide services in Ireland during the transitional period.
Offerors and persons seeking admission to trading of a crypto-asset
Offerors and persons seeking admission to trading of a crypto-asset in the EU are now subject to obligations under MiCA. Regulatory obligations include:
- Drawing up a detailed crypto-asset white paper;
- Notification of the crypto-asset white paper to the competent authority;
- Publication of the crypto-asset white paper;
- Compliance with requirements for market communications, if any;
- Compliance with conduct of business rules; and
- Liability for the information provided in the crypto-asset white paper.
Stablecoin issuers and offers
MiCA regulates issuers of e-money tokens ("EMTs") and asset-referenced tokens ("ARTs") within the EU. A person cannot make an offer to the public or seek admission to trading of an ART or an EMT unless that person is the issuer and: (a) in the case of an ART, that issuer is established in the EU and authorised under MiCA, or alternatively is authorised as a credit institution; and (b) in the case of an EMT, the issuer is authorised as a credit institution or an e-money institution, unless an exemption applies.
Market Abuse
MiCA also introduces new market abuse rules, including regarding the unlawful disclosure of inside information, insider dealing and actions that are likely to lead to market manipulation.
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