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On March 14, 2022, the European Committee on Economic and Monetary Affairs voted positively on the introduction of the Markets in Crypto Assets regulation (MiCA). Since then, it has been clear: The unified approval system for crypto assets is coming and will already come into force in parts towards the end of 2022.

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Let’s talk how we can help your business.

Connect to a new world of efficiency by utilising cleversoft’s business solutions.

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What does MiCA regulate?

MiCA was developed to help streamline distributed ledger technology (DLT) and virtual asset regulation in the European Union (EU) whilst protecting users and investors. In doing so, the regulation goes hand in hand with anti-money laundering and counter-terrorist financing (AML / CFT) laws.

The objectives of MiCA are:

‍What assets does MiCA cover?

The regulation will cover the following three types of crypto assets:

  1. Utility tokens issued for non-financial purposes to digitally provide access to an application, services or resources available on DLT networks.
  2. “Asset-referenced tokens” which aim to maintain a stable value by “referencing several currencies that are legal tender, one or several commodities, one or several crypto-assets, or a basket of such assets.” and subsequently act as a means of payment to buy goods and services and as a store of value.
  3. “e-money tokens”: crypto-assets with a stable value based on only one fiat currency that aims to function similar to electronic money (replacing fiat currency in payments), as defined in the EU”s Directive 2009/110/EC.
‍To whom does the regulation apply?

The expected regulation will affect all Crypto-Asset Service Providers (“CASPs”),i.e. any natural or legal person “whose occupation or business is the provision of one or more crypto-asset services to third parties on a professional basis”.

In this context ‘crypto-asset service’ is defined as any of the following services and activities:

  1. custody and administration of crypto assets on behalf of third parties;
  2. operation of a trading platform for crypto assets.
  3. exchange of crypto assets for fiat currency that is legal tender;
  4. exchange of crypto-assets for other crypto-assets.
  5. execution of orders for crypto assets on behalf of third parties;
  6. placing of crypto assets;
  7. the reception and transmission of orders for crypto assets on behalf of third parties
  8. providing advice on crypto assets
What are the future requirements ?

As part of the decision-making process, the committee made concrete suggestions on what shall be the Obligations for all crypto asset service providers:

Since the majority of these suggestions are in line with the already existing AML Directives, the Cleversoft Financial Crime Suite including CleverKYC and ForensicCloud is prepared to also fulfill the obligations that MiCA will introduce for Crypto Asset Service Providers. MiCA is primarily meant for the Crypto Asset Service Providers. As far as currently public, your service will not need specific adjustments. We will stay on top of any changes and inform you accordingly if it does.

In addition, there are further requirements, depending on the type of crypto-asset services: I.e. taking into account the knowledge and experience of their clients in relation to crypto-asset investments, or, in the case of the placement of crypto-assets, the obligation to explain transaction costs and fees, timing, procedure, price, etc.; The respective cleversoft services will provide the relevant facilities for this purpose.

What is the timing?

Following  the Parliament´s vote in March 2022 the MiCA draft is now shifting to a “trilogue”, a formal round of negotiations between the European Commission, Council and Parliament.

It is expected that a “Level 1” regulation will enter into force towards the end of 2022. After a period of about 18 months, the RTS (Regulatory Technical Standards) can be expected.

cleversoft will guide you through the entire process and ensures that you are fully compliant at all times.

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