MiCA

Markets in Crypto-Assets Regulation (MiCA)

MiCA (Markets in Crypto-Assets Regulation) – Regulation (EU) 2023/1114 is a regulatory act of the European Union regulating the crypto assets market.

MiCA aims to create a unified legal regime for crypto assets in the EU, ensuring investor protection, financial stability, and preventing market abuse.

MiCA is applied and required for the following organizations:

1. Cryptoactive service providers (CASP):

Crypto exchanges
Crypto asset trading platforms.
Crypto asset storage and management services providers (custodial wallets).
Providers of services for exchanging crypto assets for fiat currencies and vice versa.

2. Token issuers:

Companies that issue utility tokens, security tokens, or stablecoins, if they are offered in the EU market.

3. Other market participants:

Providers of financial services related to crypto assets.
Companies that provide advice on crypto assets.

Our MiCA compliance assessment methodology is based on the following key aspects:

Integrated approach. As part of the assessment, our team covers all the requirements described in MiCA (licensing, White Paper, risk management, cybersecurity, AML/KYC)
Using best practices. As part of the assessment, our auditors rely on the application of international standards and frameworks such as ISO 27001, NIST, and COBIT.
Interaction with regulators. Our team regularly collects feedback on the results of the assessments from regulators and Customers. As part of the work with regulators, we acquire understanding of the requirements of the supervisory authorities and their expectations.

MiCA regulates the following categories of crypto assets:

Utility Tokens. Tokens that provide
access to goods or services, but are not financial instruments.
Asset-Referenced Tokens. Tokens with the value linked to one or more assets (for example, fiat currencies, goods).
E-Money Tokens. Tokens used as a digital representation of the fiat currency.
Other crypto assets. All other types of crypto assets not subject to existing financial regulations (for example, cryptocurrencies such as Bitcoin and Ethereum).

MiCA compliance provides the following advantages:

A single market. Simplification of the activities of crypto companies in the EU due to uniform rules.
Increased trust. Increasing investor and user confidence in crypto assets.
Stimulating innovation. Creating a favorable environment for the development of blockchain technologies.
It is also worth remembering that significant fines and other measures are provided for non-compliance with MiCA requirements, including revocation of the license.

Assessment stages

As part of the preparatory phase, we will define the goals and boundaries of the assessment, collect and analyze current policies, White Papers and work regulations within the company, and prepare an audit plan

We will evaluate all the requirements specified in the MiCA and the procedures implemented within the framework of the requirements

We prepare accounting documents to submit to the supervisory authorities, which provides an analysis of all identified shortcomings and strengths. We also prepare recommendations that propose measures to eliminate the identified problems and improve compliance with MiCA requirements

Project outcomes

Report for submission to the regulator
Action plan to eliminate the identified deficiencies (Roadmap)
As part of the support, we provide control over the implementation of recommendations and improvement of processes
If necessary, we schedule a repeat audit