- The MiCA regulation (go to the article discussion on DLK’s website) is essentially a constitution for cryptoassets. It comprehensively regulates the legal position of assets, which have so far remained outside the reach of EU regulations.
- MiCA (Markets in Crypto-assets) is a European Union regulation and therefore does not require implementation into national legal order.
- MiCA aims to enable innovation in the field of finance while regulating the risks associated with crypto-assets and introducing investor protection mechanisms.
- According to the rules and regulations of MiCA, making a public offering or applying for admission to cryptoassets trading will require either obtaining authorisation or meeting certain requirements (including notification to the supervisory authority) – depending on the type of cryptoasset.
KEY INFORMATION ABOUT ICO/ITO
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Classification of tokens according to MiCA
- ART (asset-referenced tokens, asset-linked token) – maintains a stable value by being linked to another value, a right, a currency or a combination thereof.
- EMT (e-money token) – maintains a stable value by being linked to a single official currency.
- Tokens that fall within the scope of MiCA but do not qualify as ART or EMT – in particular, these will be the so-called utility tokens. Public offering or applying for admission to token trading requires compliance with certain requirements and notification to the competent supervisory authority.
Entities authorised to conduct an ICO/ITO depending on the type of cryptoasset
- ART – make an offer to the public or apply for admission to trading of an ART may only be made by an issuer of ART that is authorised by the competent supervisory authority or has made a notification – where the issuer is also a credit institution.
- EMT – make a public offer or apply for admission to trading of an EMT may only be made by an issuer of EMTs which is authorised as a credit institution or as an electronic money institution.
- Other cryptoassets – in terms of submitting a public offer or applying for admission to cryptoassets trading that do not qualify as ARTs and EMTs, the MiCA regulation does not set out specific entity requirements – it only indicates that such entity should be a legal person.
The information document (white paper)
- The obligation to prepare, notify and publish a information document accompanies the authorisation/notification for each type of cryptocurrency
- The content of the information document varies per cryptoasset – the detailed scope of information to be disclosed for each type of cryptoasset is described in the annexes to the MiCA regulation. In any case, however, applicants are required to include information on, for example, the adverse climate effects and other adverse environmental effects of the consensus mechanism applied to the emission of the cryptoassets.
- The information document should also contain various statements depending on the type of cryptoasset. Such statements may include, for example: on the risk of loss of value or liquidity, on the fact that the cryptoasset is not covered by a compensation or deposit guarantee scheme, or that the document has not been approved by a competent authority.
Marketing materials relating to a public offering or the admission of a token to trading
- Must be clearly marked as marketing material
- The information must be accurate, transparent, consistent with the information in the white paper and not misleading
- A statement on the holder’s right to request redemption at any time (ART and EMT)
- Marketing material shall be reported to the competent authority upon request
Detailed requirements and process
