The Markets in Crypto-Assets (MiCA) Regulation is a wide-ranging document designed to unify the rules of the cryptoasset market across the European Union (EU).
The main purpose of MiCA is to preserve the financial stability and integrity of the market, regulate public offerings of cryptoassets and promote consumer awareness of the potential risks associated with such assets.
MiCA licensees will have a considerable competitive advantage as they will be able to operate throughout the EU on a “permit-free” basis and with a stable regulatory framework.
The requirements for obtaining a MiCA license are very diverse. Despite this, we have a team of experts who guide cryptocurrency companies through the entire process in terms of successfully getting the MiCA license.
Ensure your business stays ahead of the curve with MiCA compliance through Manimama. Our lawyers provide comprehensive guidance and tailored solutions to navigate the evolving regulatory landscape.
Unlocking the Benefits of MiCA Compliance
Enhanced investor protection:
- By enforcing strict disclosure requirements and mandating comprehensive whitepapers, MiCA ensures that investors have access to essential information. This transparency helps investors make informed decisions, thereby protecting them from fraudulent schemes and misleading projects.
Market integrity and stability:
- MiCA introduces rules to prevent market manipulation and insider trading in the crypto market. These regulations promote fair trading practices, contributing to the overall stability and integrity of the market. This, in turn, fosters trust among participants.
Competitive advantage:
- Early and proactive compliance with MiCA can give businesses a competitive edge. Companies that align with regulatory requirements ahead of their peers can position themselves as industry leaders in transparency and reliability. This can attract more customers, partners, and investors who prioritize regulatory adherence.
Improved consumer trust:
- Compliance with MiCA reassures consumers that the crypto-assets they invest in are regulated and monitored by authorities. This increased trust can lead to a broader acceptance and adoption of crypto-assets among the general public, driving the growth of the industry.
Access to a wider market:
- MiCA compliance allows crypto companies to operate across the entire EU market without facing fragmented regulations in different member states. This harmonized regulatory framework facilitates smoother market entry and operations across all EU countries, expanding the company’s potential customer base and market opportunities.
Facilitated access to financial services:
- Compliance with MiCA can streamline access to traditional financial services, such as banking and payment services. Financial institutions are more likely to partner with crypto companies that meet regulatory standards, which can improve the company’s ability to integrate with the broader financial ecosystem.
Legal Opinion about MiCA Compliance
Ganna Voievodina
Manimama, CEO
“With the rapid development of digital assets, MiCA compliance is essential to mitigate risk and ensure investor confidence. To effectively navigate the complexities of MiCA compliance, we suggest consulting with the experts at Manimama, who can provide customized legal advice and ensure that all regulatory requirements are met. Our experience will help achieve and maintain compliance, thereby protecting your interests in the dynamic cryptocurrency landscape”.
Who is Impacted by MiCA?
MiCA aims to create a safer and more transparent environment for all participants in the crypto-asset market. Thus, it covers crypto-asset issuers, offerors, persons seeking admission to trading crypto-assets and crypto-asset service providers (CASPs). More specifically, it refers to:
- crypto exchanges
- custodial wallet providers
- token issuers
- stablecoin issuers
- crypto brokers
- fiat on- and off-ramps
- investment advisors
- portfolio advisors
- placement agents
- remittance providers
In general, most business relationships involving crypto assets in the EU fall under the MiCA Regulation. This regulation must be complied with even by companies that work with crypto assets outside the EU but conduct business for EU clients.
The MiCA Landscape: a Comprehensive Overview
MiCA is a standard that regulates the norms and conditions for businesses dealing with different types of crypto-assets. This legislative initiative establishes clear rules for accreditation of crypto exchanges, custodians and token issuers, bridging gaps in current financial regulations. Getting the MiCA license enables companies to demonstrate to their customers and investors that it is safe to deal with them, as they are sufficiently reliable and completely transparent.
MiCA specifies three types of crypto-assets:
- asset-referenced tokens (ARTs)
- electronic money tokens (EMTs)
- utility tokens
It should be emphasized that MiCA introduces the concept of “significance” for ART and EMT. Thus, significant ARTs and EMTs are tokens that exceed certain application limits and are required to meet higher prudential, governance and liquidity requirements.
MiCA establishes a requirement to develop a white paper on crypto-assets before offering crypto-assets to the public or listing crypto-assets on an exchange. It sets out specific requirements for the form and content of a crypto-asset white paper. Issuers of asset-referenced tokens and e-money tokens are subject to additional requirements. Besides requiring these issuers to be licensed, the white paper of crypto-assets must also be approved by their financial regulator.
There is such list of requrements that MiCA outlined for CASPs as:
- be a legal entity
- have a registered office in an EU member state
- be authorized as a CASP
- act honestly, fairly and professionally in the interests of its clients
- have a minimum authorized capital of between €50,000 and €150,000 depending on the services provided
- fulfill organizational requirements (e.g. members of the CASP’s governing body must have the necessary reputation and competence in terms of qualifications, experience and skills to perform their duties)
- meet minimal requirements for safekeeping of clients’ crypto assets, outsourcing, prudential requirements
- have a procedure for managing client complaints and a policy for identifying and disclosing conflicts of interest
- post information on their website about the environmental impact of the cryptoassets which CASPS serve
The MiCA crypto-licensing procedure mainly involves 4 key steps:
- Due diligence. The business model is analyzed, existing documentation is studied, a list of necessary documents is compiled, etc.
- Preparatory work. Creating a business plan and financial projections, preparing the application and mandatory policies, collecting documents from owners and management, finding an office space.
- Preparatory work. Filing application and supporting documents with regulatory authority, answering questions and providing additional information as requested.
- Getting ready to operate. Establishing partnerships with EU banks, implementing compliance and risk management systems, and final procedures before obtaining a license.
This is roughly what the basic procedure looks like, but it should be remembered that every jurisdiction will have its own procedures and timelines.
So, to better understand the requirements for each country, we suggest you read our MiCA materials*:
- France
- Poland
- Sweden
- Romania
- Poland
- the Czech Republic
- Portugal
- Spain
- Luxembourg
- France
- Slovenia
- Slovakia
- Netherlands
- Ireland
- Hungary
- Latvia
- Lithuania
- Germany
- Finland
- Estonia
- Croatia
- Austria
*Every week this list will be updated
Our Services
We offer customized MiCA compliance services, analyzing how this regulation will affect your business model and operations.
The services we provide include:
- Assessment of MiCA compliance readiness
- Formation of a EU legal entity
- Full CASP authorization
- Preparation of policies and procedures – it can be drafting new policies and procedures to meet MiCA requirements or revising the existing policies to incorporate MiCA requirements (i.e. AML framework with customer due diligence, transaction monitoring and reporting procedures; risk management and control frameworks; etc.)
- Liaising with regulators on your behalf
- Calculation of capital and financial projections
- Preparing a program of activities
- Governance assessment
- Shareholder assessment
- White paper compilation/modification
- Assessment of AML compliance and sanctions
- Crypto-asset strategy
- Crypto-asset classification
- Assessing compliance of marketing materials
- Providing a legal opinion (for instance, crypto exemption)
- Ongoing support, which includes:
- monitoring changes in legislation and informing about potential amendments to the MiCA
- providing recommendations on new MiCA requirements as they become available
- updating your policies and procedures in a timely manner to reflect the new regulations
Drawing on our extensive experience in cryptocurrency regulation, we ensure that you receive a detailed understanding of all aspects of MiCA based on your unique business needs.
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Why Manimama? Your Trusted Partner in Law
When you choose Manimama for MiCA compliance services, you get unrivaled expertise and peace of mind. Our legal team specializes in up-to-date EU regulations, ensuring that your business is MiCA compliant. With experience working with clients in complex regulatory environments, we offer tailored solutions to meet your unique needs.
At Manimama, we combine in-depth knowledge with practical experience, offering strategic advice and comprehensive support. Our commitment to staying ahead of regulatory changes means you can trust us to keep your business compliant and competitive. We prioritize transparency and clear communication, ensuring you understand every step of the process.
In addition, we are distinguished by our personalized approach and commitment to customer satisfaction. We work closely with you to develop a customized compliance strategy, helping you confidently navigate the intricacies of MiCA.
We fully understand the difficulties companies face in complying with complicated regulations such as MiCA. As experienced legal experts, we can help you at every stage of MiCA compliance. Working together, we will help you find the perfect balance between your business and regulatory requirements!
Frequently Asked Questions
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What is MiCA compliance?MiCA (Markets in Crypto-Assets) compliance refers to adhering to the regulatory framework established by the European Union to govern the issuance, trading, and operation of crypto-assets and related services.
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Who needs to comply with MiCA regulations?MiCA regulations apply to issuers of crypto-assets, providers of crypto-asset services, and operators of trading platforms within the EU.
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What are the main objectives of MiCA?MiCA aims to provide legal certainty, protect consumers and investors, ensure market integrity, and support innovation and fair competition in the crypto-assets market.
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What types of crypto-assets are covered under MiCA?MiCA covers various types of crypto-assets, including utility tokens, asset-referenced tokens, and e-money tokens.
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What are the key requirements for issuers of crypto-assets under MiCA?Issuers must provide a detailed white paper, register with the relevant authorities, and comply with transparency, disclosure, and conduct requirements.
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What are the costs of registering a company?Costs vary based on factors such as type of business structure, jurisdiction, legal services, filing fees, license fees, taxes and ongoing compliance costs.
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How does MiCA impact crypto-asset service providers (CASPs)?Service providers must obtain authorization, meet prudential and operational requirements, and adhere to conduct rules to ensure the safe and efficient operation of their services.
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What is a MiCA white paper?A MiCA white paper is a comprehensive document that provides detailed information about the crypto-asset, its issuer, the project’s purpose, and the associated risks and rights.
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Do non-EU businesses need to comply with MiCA?Yes, non-EU businesses targeting the EU market or offering services to EU residents must comply with MiCA regulations.
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How does MiCA promote market integrity?MiCA includes provisions to prevent market abuse, ensure fair trading practices, and enhance transparency and accountability in the crypto-assets market.
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What are the ongoing obligations for MiCA-compliant businesses?Ongoing obligations include regular reporting, maintaining adequate risk management systems, and ensuring continuous compliance with MiCA requirements.
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How can businesses prepare for MiCA compliance?Businesses should review and update their policies, procedures, and systems to align with MiCA requirements, seek legal advice from Manimama law firm and stay informed about regulatory developments.
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