MiCAR

Founders in the crypto industry often ask themselves whether it is still worth applying for a BaFin authorization according to the KWG or the WpIG prior to the MiCAR coming into force. In most cases, the answer is a clear “yes”.

In the future, crypto asset service providers in the EU will have to obtain an authorization for their business in accordance with MiCAR. However, there are exceptions in this respect for banks and investment firms. The situation is somewhat more problematic for German crypto custodians.

Pursuant to the new MiCAR, crypto-asset offerors will be required to publish a comprehensive white paper prior to the public offering of the tokens or prior to a listing on a crypto trading platform. Which information must be set out in such white papers?

MiCAR is initially intended to regulate the crypto market only by imposing stricter rules and obligations on centrally acting players. DeFi models are generally not to be included. But when is a service really considered to be decentral in the sense of MiCAR?

Under the new MiCAR, crypto-asset service providers will in future have to obtain regulatory authorization before they are allowed to operate in the EU. What will be the requirements for a successful MiCAR authorization application?

MiCAR introduces a new and Pan-European concept of crypto assets, which differs strongly in its definition from the German crypto asset concept. What impact will this have on the handling of utility tokens?

The text for the Markets in Crypto Assets Regulation (MiCAR) has recently been finalized. As soon as the new regulation applies, the provision of crypto-asset services in the EU will be subject to authorization. But which activities does this actually affect exactly?

The question if NFTs and business models relating to them should be subject to MiCAR was controversially discussed and unclear for a long time. A compromise was reached in the end which now causes legal uncertainty.