MiCAR Compliance: Markets in Crypto-Assets Regulation
Regulation (EU) 2023/1114 entered into force in 2023 and applies in two waves: stable-coin rules from 30 June 2024, all remaining CASP obligations from 30 December 2024. MiCAR creates a single EU passport for crypto-asset issuers and service providers, boosting investor protection and market integrity.
What is MiCAR?
The Markets in Crypto-Assets Regulation (MiCAR) is the EU’s first harmonised rule-set for crypto-assets that fall outside MiFID II. It governs three token classes, utility tokens, asset-referenced tokens (ARTs) and e-money tokens (EMTs), and sets authorisation, disclosure and prudential rules for crypto-asset service providers (CASPs).Key milestones: ART/EMT issuers must meet reserve, governance and white-paper duties by 30 Jun 2024; all CASPs need an EU licence and operational safeguards by 30 Dec 2024. A compliant licence grants passporting across the EU’s 27 markets.
Key Features of MiCA
MiCA Regulation delves trough different aspects of crypto compliance:
Comprehensive Regulatory Framework for all crypto-assets
MiCAR establishes a unified set of rules applicable across the board for various types of crypto-assets, including but not limited to cryptocurrencies, security tokens, and stablecoins.
Authorization Requirements for CASPs and crypto-issuers
MiCA regulation mandates that Crypto-Asset Service Providers (CASPs) and issuers of crypto-assets obtain authorisation from regulatory bodies in order to ensure transparency.
Investor Protection Measures
The framework introduces several measures designed to protect investors, including clear disclosures about the risks associated with investing in crypto-assets, measures to prevent and address conflicts of interest, and requirements for the safekeeping of assets
Market Abuse Prevention to ensure market integrity
To preserve the integrity of the crypto-asset markets, MiCAR includes provisions to combat market abuse, covering practices such as insider trading, market manipulation, and the dissemination of false info.
Transparency Requirements for crypto-asset issuances
Issuers of crypto-assets are required to provide detailed information about their offerings. This includes the publication of a white paper that discloses essential details about the project, its governance, the rights of the asset holders, and the risks involved.
Implications of MiCA
Issuers and CASPs must draft compliant white-papers, build reserve and safekeeping arrangements, upgrade governance, and file licence applications well before the December 2024 deadline. Third-country firms wishing to serve EU clients will need an authorised EU entity or rely on narrow reverse-solicitation exemptions.
MiCAR Compliance Through Grand GRC Platform
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How Grand Helps
Each module in Grand.io's GRC software suite is meticulously designed to facilitate thorough compliance with the MICA (Markets in Crypto-Assets) Regulation, tackling critical facets such as crypto-asset risk management, transaction reporting, oversight of crypto-asset service providers, and seamless adaptation to the evolving landscape of crypto regulations.
Frequently Asked Questions
EU Regulation 2023/1114 creating uniform rules for crypto-asset issuance and services not already covered by MiFID II.
All EU-facing crypto-asset service providers and issuers of utility tokens, ARTs or EMTs, plus third-country firms marketing into the EU.
ART/EMT obligations start 30 Jun 2024; all other CASP rules start 30 Dec 2024 with transitional relief set by each Member State.
Licence or registration, white-paper disclosure, capital/reserve safeguards for stable-coins, governance & AML controls, market-abuse monitoring, and ongoing reporting to national supervisors.
