The EU’s Regulation on Markets in Crypto-assets (MiCAR): Your Essential Roadmap

The EU’s crypto-assets landscape is experiencing significant shifts following the recent adoption of the Markets in Crypto-assets Regulation (MiCAR). As we approach key application deadlines in 2024, understanding the implications of MiCAR is essential for anyone involved or interested in crypto-assets.

Our newest CMS publication provides a useful roadmap to understand key elements and anticipate upcoming changes. Don't tackle these complexities unprepared. Arm yourself with our guidance to make well-informed decisions in this dynamic sector. CMS's Crypto team, comprising over 400 crypto-savvy legal experts across more than 40 countries, is at your service. Contact us at: crypto@cmslegal.com.

How to get prepared

Timeline: 2 main application dates

Points of attention

• Mapping of crypto-assets: what are the characteristics of the assets and their classification according to MiCAR? Consider whether you will fall inside the scope or outside the scope of MiCAR (e.g. NFT, financial instrument, deposit). This mapping exercise may seem simple but could still prove difficult to carry out in practice. Do not hesitate to seek legal advice as the case may be, particularly in relation to complex instruments.
• List of activities provided: do you carry out an activity, which falls within the scope of MiCAR? Consider whether you are carrying out this activity for your own behalf, for another group entity, for a third party, for a retail customer or for a professional customer. Decentralised activities (rare in practice!) may be out of scope.
• Authorisation requirements:
  - Were you already registered/authorised pursuant to national law?
  - Will you be able to benefit from a simplified procedure as the case may be?
• Third country firms: consider how you will be able to provide/continue to provide your activities to EU clients. Also consider where your main client base is located and whether you will be able to rely on reverse solicitation or if you will need to seek authorisation.
• Prudential requirements: consider your capital structure, particularly your own funds and plan in advance to meet prudential requirements.
• Policies and procedures: start drafting your policies and procedures or consider entrusting this task to a third party. Pay particular attention to your AML-CTF policies and procedures since these will be subject to enhanced scrutiny by competent authorities.
• Rules of conduct: are you familiar with the rules of conduct in the financial sector? If not, you should begin familiarising yourself with such rules and requirements. If yes, consider how the rules set out under MiCAR are different or similar from those derived from MiFID II.

You can download the PDF version at the bottom of the page.

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