The Markets in Crypto-Assets regulation (EU) 1114 / 2023 entered into force on 29 June 2023. MiCA regulation introduces a comprehensive legislative framework for crypto-assets and related activities and services. Focusing on consumer protection, market integrity and fostering innovation, this regulation seeks to enhance legal clarity, establish compliance standards, and promote investor confidence.
As a regulation, MiCA regulation will be directly applicable across EU member states, replacing the existing rather fragmented domestic laws and harmonising all national legislation in the area of crypto-assets and activities related to them.
MiCA regulation creates a bespoke regime for crypto-assets that are not already covered in European financial services legislation and groups them into three main categories:
(i) asset-referenced tokens (“ART”),
(ii) e-money tokens (“EMT”), and
(iii) other crypto-assets.
Consultation Paper CP-01-2024
On the 26th of June 2024, the Cyprus Securities and Exchange Commission (CySEC) released Consultation Paper CP-01-2024 inviting market participants to provide feedback on the proposed fees for actions taken by entities in relation to Regulation on markets in crypto-assets (MiCA Regulation).
The Consultation Paper covers licensing / application fees, notification fees on various matters as well as annual fees.
Importantly, the Consultation Paper specifies that new categories of supervised entities introduced by MiCA, which are expected to be overseen by CySEC, include:
- Offerors of crypto-assets other than ARTs and EMTs.
- Issuers of ARTs (excluding credit institutions).
- Crypto-Asset Service Providers (CASPs).
Stakeholders are encouraged to submit their feedback by 17 July 2024.
CySec Circular (C648)
Notification of crypto asset services under article 60 of MiCA.
In the context of the upcoming application of the Market in Crypto Assets Regulation, CySEC issued on 26 June 2024 Circular (C648). This circular invite regulated entities including Cyprus Investment Firms (CIFs), UCITS Management Companies, and Alternative Investment Fund Managers (AIFMs) to express their intent regarding the provision of crypto related services. This initiative aims to enhance understanding of the market to facilitate the practical implementation of the notification procedure under Article 60 of MiCA regulation.
To this effect a Questionnaire has been distributed. The questionnaire contains sixteen questions.
Regulated entities are invited to submit their answers by the deadline of Friday 26 July 2024.
Should you need assistance on MiCA regulation feel free to contact us.