- Background
In a pivotal move to regulate the rapidly evolving landscape of crypto-assets, European Commission has introduced comprehensive transitional measures through Article 143 of EU Regulation 2023/11 on Markets in Crypto-Assets (hereinafter “MiCA”). These measures are aimed at addressing the unique challenges posed by the crypto-asset market and fostering a secure environment for investors and market participants.
- Key take-aways
- Exemption for Pre-2024 Offers: Provisions referring to Crypto-Assets other than asset-referenced tokens or e-money (art. 4 to art. 15) shall not apply to offers to the public of crypto-assets that concluded before 30 December 2024, providing a transition period for earlier offerings.
- Limited Requirements for Pre-2024 Crypto-Assets: Despite the aforementioned exemption, for crypto-assets admitted to trading before 30 December 2024, specific requirements are outlined:
- Marketing communications after 30 December 2024 must adhere to the applicable provisions on the matter (as referred in art. 7 and art. 9 of MiCA).
- Trading platform operators are mandated to ensure compliance with crypto-asset white paper and marketing communications regulations by 31 December 2027.
- Extension for Pre-2024 Crypto-Asset Service Providers: Crypto-asset service providers (hereinafter referred to “CASPs”) operating in accordance with the existing law before 30 December 2024 can continue until 1 July 2026 or until a decision on authorization is made by the competent authority (art. 63 of MiCA), whichever comes first. Member States have the flexibility to adjust the duration based on their regulatory frameworks.
- Continued Issuance of Asset-Referenced Tokens: Issuers of asset-referenced tokens, excluding credit institutions, can continue operations until authorization is granted or refused pursuant to art. 21`s procedure, provided the application is submitted before 30 July 2024.
- Grace Period for Credit Institutions: According to art. 17 of MiCA, credit institutions issuing asset-referenced tokens have until the approval or disapproval of the crypto-asset white paper, with the condition that they notify the competent authority by 30 July 2024.
- Simplified Authorization Procedure: Member States can employ a simplified authorization procedure for entities authorized under national law to provide crypto-asset services before 30 December 2024, submitting applications between 30 December 2024 and 1 July 2026.
- Supervisory Oversight by EBA: The European Banking Authority (EBA) will assume supervisory responsibilities under Article 117 upon the application of delegated acts referenced in Article 43(11).
Member States are required to notify the Commission and ESMA by 30 June 2024 about their decision to exercise the options provided in the transitional regime.
- Impact for Romanian CASPs
Romanian CASPs will need to navigate a phased regulatory landscape as outlined in the EU Directive. Pre-2024 offerings and crypto-assets enjoy transitional provisions, while compliant existing CASPs have extended operational timelines. Marketing communications and compliance requirements post-2024, however, will necessitate adaptation. CASPs operating under national law face a simplified authorization process. Overall, CASPs must align with evolving regulations, ensuring a smooth transition and ongoing compliance to thrive in the changing crypto-asset environment.
For further information, our team is dedicated to guiding CASPs and investors through the compliance and regulatory facets of MiCA, ensuring seamless adaptation to the evolving regulatory landscape.
Huială Mihai-Cristian, Associate
