The new Markets in Crypto-Assets (MiCA) regulation is set to transform the cryptocurrency industry within the EU. As one of the most comprehensive regulatory frameworks for crypto-assets worldwide, MiCA introduces stringent requirements for crypto-asset service providers and issuers. With MiCA’s full implementation expected by 2024, crypto companies must urgently adapt their operations and business models to comply with the new rules.
At Fintech Balance, we understand the challenges businesses face with navigating complex regulations like MiCA. As leading regulatory experts, we are here to guide you through MiCA compliance every step of the way. Let’s find the balance between business and legal compliance.
Note: Read on to understand how working with us will ensure your business is fully MiCA-ready.
Understanding MiCA And Its Implications
The Markets in Crypto-Assets Regulation establishes a harmonized approach for governing crypto-assets not currently covered by existing EU financial services legislation. MiCA aims to boost innovation while protecting consumers and maintaining financial stability.
MiCA covers all crypto-assets including cryptocurrencies like Bitcoin, utility tokens, and stablecoins. It introduces a comprehensive regulatory framework encompassing:
- Authorization and operating requirements for crypto-asset service providers
- Strict investor protection rules
- Measures to prevent market manipulation and abuse
- Requirements for crypto-asset issuers
- Rules for stablecoins and asset-referenced tokens
This extensive set of rules will require significant changes for crypto businesses. Gaining a clear understanding of MiCA’s implications on your specific business is critical before adapting operations and processes.
How We Help You Understand MiCA And Its Impact
With our team of regulatory experts, we offer customized MiCA impact assessments, analyzing how the regulation will affect your business model and operations.
Our services include:
ANALYSIS STAGE
- In-depth reviews of your business model against MiCA requirements
- Identification of the MiCA provisions applicable to your crypto services
- Gap analysis of areas needing change to achieve compliance
- Summary of the specific MiCA rules you must comply with
PRE-APPLICATION STAGE
- Preparation of business plan together with the financial forecasts
- Preparation of application documents
- Preparation of questionnaires of key management persons and shareholders
- Preparation of additional required policies
- Assisting in establishing partnerships with 3rd party service providers
APPLICATION STAGE
- Submission to the application to the Bank of Lithuania
- Q&A session with the Bank of Lithuania
- Virtual meeting with the Bank of Lithuania before issuance of license
- Obtaining approval for issuance of CASP license under MiCA regulation
POST-LICENSING STAGE
- Assistance in hiring employees
- Assistance in banking solutions
- Assistance in reviewing / adjusting internal policies and procedures
- Employee trainings
- Review or agreements with partners, representation in negotiations
- Full accounting support
- Tracking regulatory changes to keep business up to date
- Etc.
Leveraging our extensive experience in the crypto regulatory environment, we’ll ensure you gain a detailed understanding of MiCA’s implications tailored to your unique business needs.
Guiding You Through The MiCA Authorization Process
MiCA mandates that crypto-asset service providers (CASPs) obtain authorization from national regulators before operating within the EU. Meeting the authorization requirements can be a complex process.
We provide end-to-end support with securing your MiCA authorization, including:
- Advising on the ideal legal structure and jurisdiction for applying under MiCA
- Preparing policies and procedures to meet MiCA governance and capital requirements
- Assisting with the authorization application process
- Liaising with regulators on your behalf
- Responding to queries and information requests
- Ongoing support until authorization is secured
With our assistance, you can smoothly navigate the authorization process and accelerate your company’s compliance with MiCA.
Updating Your Systems And Controls For MiCA Compliance
To operate compliantly under MiCA, companies must implement robust systems and controls. This includes meeting requirements related to:
- Anti-money laundering (AML) and counter-terrorism financing (CTF)
- Security of clients’ funds and assets
- Market abuse surveillance and reporting
- Recordkeeping and transaction monitoring
- Privacy and data protection
We work closely with your team to adapt your systems and operations to satisfy MiCA. Our services include:
- Designing and implementing compliant AML/CTF frameworks with customer due diligence, transaction monitoring, and reporting procedures
- Enhancing IT and cybersecurity systems to meet MiCA data protection rules
- Integrating market abuse surveillance tools and trading controls
- Upgrading recordkeeping processes for MiCA-aligned transaction audits
- Implementing IT solutions to fulfill reporting requirements
- Testing new systems and controls to validate MiCA alignment
Leveraging our specialized expertise, we ensure the smooth integration of the right controls across your business to achieve full MiCA compliance.
Creating MiCA-Aligned Policies And Procedures
To comply with MiCA, companies must review and update their policies and procedures across areas like:
- Governance and risk management
- Complaint handling
- Conflicts of interest
- Outsourcing
- Asset safekeeping and administration
We offer end-to-end support with creating MiCA-ready policies and processes including:
- Conducting gap analyses to identify areas requiring enhanced policies
- Drafting new policies and procedures aligned with MiCA specifications
- Revising existing policies to integrate MiCA requirements
- Developing operational procedures and manuals for implementing updated policies
- Validating new processes and documentation through pilot testing
Our expertise ensures you implement comprehensive policies and procedures that adhere to MiCA’s provisions.
Providing Ongoing Advisory For Sustainable MiCA Compliance
Achieving compliance is an ongoing journey. We provide continuous MiCA advisory services so you can sustain compliance amid evolving crypto regulations.
Our ongoing support includes:
- Monitoring regulatory developments and updating you on potential MiCA amendments
- Regular MiCA compliance reviews and gap analyses
- Guidance on new MiCA requirements as they emerge
- Promptly updating your policies, systems, and controls for new rules
- MiCA compliance training for your staff
- Responding to MiCA-related queries
With us as your trusted regulatory partner, you can keep pace with MiCA’s evolving standards and maintain sustainable compliance.
Why Choose Us For Your MiCA Compliance Needs?
When you choose us as your MiCA compliance partner, you get access to:
- A team of seasoned regulatory experts with extensive crypto compliance experience
- Customized solutions tailored to your unique regulatory needs
- End-to-end support for efficient MiCA adaptation
- Leading technology and tools for compliant systems implementation
- Proactive guidance to avoid regulatory breaches
As leading specialists in crypto compliance, we have the proven expertise and resources to guide your business through MiCA adaptation smoothly. Get in touch with us today to start your MiCA compliance journey.