MiCAR

The placement of crypto assets for crypto asset service providers will be a regulated business activity under MiCAR. But what is the specific activity behind this crypto service?

In the future, anyone wishing to execute orders for crypto assets for clients in the EU will require a MiCAR license to do so. However, MiCAR provides for further regulatory obligations for crypto service providers in addition to the licensing requirement.

MiCAR was published in the Official Journal of the EU last week. Until the rules on the regulation of crypto custodians apply, the German legislator will have to think about adapting or abolishing their national KWG regulation of crypto custodians.

Under MiCAR, crypto exchange providers will be subject to a licensing requirement and special compliance obligations. What exactly will crypto service providers have to consider when exchanging crypto assets for other crypto assets or for fiat money?

Stablecoins can be issued as e-money tokens under MiCAR. The relevant rules of the new regulation on this will already apply in about a year.

Under MiCAR, advice on crypto assets will also be subject to licensing. Crypto investment advisors will have to fulfill numerous regulatory obligations as part of their advisory services.

Crypto exchanges will be strictly regulated under the MiCAR regime in the future. What regulatory obligations will operators have to fulfill and which crypto assets may be listed?

Under MiCAR, crypto custodians will be required to obtain a license prior to commencing crypto custody services. Beyond that, MiCAR also provides for numerous other legal obligations for crypto custodians.

Under MiCAR, crypto asset service providers, like all regulated entities, will be required to hold a minimum amount of regulatory capital to back up their operations. How will this specific amount be calculated under MiCAR?

Under the regulatory regime of MiCAR, crypto asset service providers will also need to establish a sophisticated crypto compliance. What duties will crypto asset service provider compliance include under MiCAR?

In the future, the new MiCAR will finally enable crypto service providers to offer their services throughout the EU without the need of obtaining additional authorizations under MiCAR in the target countries. How will the MiCAR passporting process work?

According to MiCAR, e-money tokens will in future represent a specific form of crypto assets and will therefore also be regulated as such. Nevertheless, the legislator is trying to additionally squeeze e-money tokens into the traditional e-money regulation.