MiCAR at a glance: who needs an authorisation and what it covers

Please note: this article reflects the legal situation as of September 2024. There may have been changes since then.

The Markets in Crypto-Assets Regulation (MiCAR) creates a harmonised EU framework for crypto-assets for the first time. Together with Dr. Nick Wittek of the law firm Jones Day, we summarise the key facts.

What is MiCAR, and who does it affect?

MiCAR (Regulation (EU) 2023/1114) regulates the issuance of crypto-assets and the provision of crypto-asset services in the EU. It is relevant for three groups:

• issuers of crypto-assets, including asset-referenced tokens (ART) and e-money tokens (EMT),
• crypto-asset service providers (CASPs),
• regulated financial institutions that want to offer crypto-asset services.

Which services are covered?

MiCAR defines ten crypto-asset services, including custody and administration, operating a trading platform, exchange against funds or other crypto-assets, execution and reception and transmission of orders, placing, advice, portfolio management and transfer services.

Which crypto-assets are covered?

MiCAR distinguishes three categories: asset-referenced tokens, e-money tokens and all other crypto-assets, such as Bitcoin or utility tokens. Crypto-assets that qualify as financial instruments under MiFID II, for example crypto securities under the eWpG, remain outside MiCAR.

Since when does MiCAR apply?

• MiCAR entered into force on 29 June 2023.
• The rules for ART and EMT have applied since 30 June 2024.
• The other provisions, including those for CASPs, apply from 30 December 2024.
• Member states can grant existing providers a transitional period of up to 18 months. Germany has opted for a shorter transitional period of twelve months.

Authorisation or notification?

New providers need an authorisation as a CASP. Credit institutions, investment firms and certain other regulated entities can use a simplified notification procedure under Art. 60 MiCAR.

Do you offer crypto-asset services, or are you planning to?

Whether you want to enter the market, issue crypto-assets or extend an existing license: FinPlanet supports you from the business model and gap analysis to the application documents and implementation. Contact us at info@finplanet.eu.