MiCA crypto
If you are interested in obtaining a license from a virtual asset service provider, then note that there are special transitional rules for crypto service providers that already have a license in the member state at the time of entry into force MiCA. Under the UIA Rules, crypto service providers that provided their services in accordance with applicable national The Rules of the United Nations may continue to do so within 18 months after the Rules have entered into force. The requirements that VASPs have to meet in order to obtain authorization are comparable to those that FSPs have to consider within WplG. The information to be provided includes, but is not limited to: detailed business plan, equity information, management agreement documentation, owner information, proof of suitability of directors, Description of internal controls and risk analysis. A feature of MiCA is the scheduled processing time for authorities.
Transitional provisions for crypto-service provider MiCA
MiCA also provides for simplified registration of crypto service providers in the EU for already active suppliers. In the simplified procedure, the competent authorities should only check whether the provider of such services has fulfilled the general obligations and commitments regarding providing special crypto services. It will also play a role that the European passport, i.e. the right of VASP to provide services subject to registration in another EU country, will be faster than MiFID. Article 58 of the MiCA crypto provides for a maximum period of 15 days, according to which the national authority of the country must send information about the passport. the recipient within 10 working days,and VASP can take action after receiving the message, but not later than 15 days after the submission to the authority of the country of origin. It should be mentioned that credit institutions CRR and securities institutions that are already under supervision must also apply to supplement their existing passport. The application must be submitted to the authorities of the country of residence/registration at least 40 days before the beginning of work.
Service exclusively on customer initiative/ reverse application
MiCA Regulation will require crypto companies to register and obtain the appropriate permission from national governments. Many companies based in third countries are asking whether the MiCA Regulation is relevant to them.
If they want to offer services to customers in the EU, they must comply with this regime, establish a physical presence in the EC and obtain permission. The only exception is when the service is provided solely on initiative client, which is also called reverse request or passive service. In accordance with the above mentioned registration requirement does not apply if the service is provided on the initiative of the client established or residing in the Union.
What is new compared to MiFID is that the MiCA crypto already contains detailed provisions on reverse request. According to this, a third-country company can only provide a specially requested service. Other additional services are not allowed.
The importance of MiCA crypto
With the publication of the agreement reached during the trilateral talks, the pan-European regulation of cryptocurrencies is becoming more and more tangible. Even if MiCA is not yet adopted. Finally, and ESMA and EBA have full authority to develop additional detailed rules, market participants are urged to consider their requirements in detail now. Therefore, companies that are already active in this business, as well as those who want to launch a crypto startup in the EU, are recommended to consider MiCA in their strategic decisions.