MiCA Delegated Regulations Now in Effect: Critical Updates for Crypto-Asset Firms
- James Ross
- Jun 9, 2024
- 2 min read
The European Commission has published four key Delegated Regulations in the Official Journal of the European Union, marking a significant milestone in implementing the Markets in Crypto-Assets Regulation (MiCA). These regulations provide crucial details and clarifications for various aspects of MiCA, impacting all firms operating in the crypto-asset space.
What's Covered in the New Regulations?
The four Delegated Regulations address the following areas:
Fees: This regulation specifies the fees charged by the EBA for supervising significant asset-referenced tokens (ARTs) and e-money tokens (EMTs).
Fines: This regulation outlines the procedural rules for the EBA to impose fines or penalties on issuers of significant ARTs and EMTs for non-compliance with MiCA requirements.
Classification of Significant Tokens: This regulation establishes the criteria for determining which ARTs and EMTs are considered "significant." This classification is crucial as it triggers additional regulatory requirements and oversight.
Intervention Powers: This regulation clarifies the criteria and factors that ESMA, the EBA, and competent authorities must consider when exercising their intervention powers under MiCA.
Effective Date: June 19, 2024
These regulations came into force on June 19, 2024, meaning that firms operating in the crypto-asset space must immediately adhere to the new requirements.
What This Means for Your Firm
Fee Obligations: If your firm issues significant ARTs or EMTs, be prepared to pay supervisory fees to the EBA. Understand the fee structure and factor it into your financial planning.
Compliance is Key: The publication of procedural rules for fines emphasises the importance of robust compliance programs. To avoid penalties, ensure your firm adheres to all MiCA requirements.
Assess Your Token's Significance: Carefully evaluate whether your ART or EMT meets the criteria for classification as significant. If so, be prepared for additional regulatory scrutiny and reporting obligations.
Understand Intervention Powers: Clarifying intervention criteria provides greater certainty about when and how regulators may intervene in the market. This knowledge can help your firm manage its risks effectively.
The Way Forward
The publication of these Delegated Regulations is a crucial step in implementing MiCA, bringing the EU closer to a comprehensive regulatory framework for crypto-assets. Firms operating in this space must proactively review and understand these regulations to ensure compliance and mitigate potential risks.
Stay ahead of the curve:
Stay informed about further updates and guidance from regulators.
Review your operations and processes to ensure alignment with the new requirements.
Seek expert advice if needed to navigate the complexities of MiCA.
