12 September 2023 - MK Fintech Partners

Category

September 12, 2023

An ART is defined in MiCA as a type of crypto-asset that is not an electronic money token and that aims to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies. Meanwhile, an EMT is defined in MiCA as a type of crypto-asset that purports to maintain a stable value by referencing the value of one official currency. The issue that firms will face is whether to consider what they are doing as an ART, and thus something that requires authorisation via MiCA, or whether they are distributing an EMT, which needs to be authorised through the Electronic Money Directive (EMD) or under the Capital Requirements Regulation as a credit institution. However, rules for EMTs are set out within MiCA and must be applied. As acknowledged by representatives from the National Bank of Belgium and the European Banking Authority recently, this has already been a headache for firms with regard to whether they need to apply for a MiCA-specific licence or an EMD licence. Chase continued that the first step for firms is to select which member state they want to get authorised in. "We saw just last week that Coinbase has selected Ireland as its MiCA authorisation base." she said. "Then there's all the work you need to do with your regulator to prepare the required information for internal and external purposes," Chase continued, adding that another issue worth keeping in mind is responding to MiCA consultations prepared by the European Banking Authority and the European Securities and Markets Authority. "If firms haven't taken a look at these I would advise them too. It's your chance to have to your say”.

The MiCAR and Travel Rule Regulation Flight has now taken off! Will the flight be a turbulent one with a smooth touchdown?

News & Insights12 September 2023

MK Fintech Partners discuss The MiCAR and Travel Rule Regulations, and the various intricacies that fare to follow.