EU Crypto-Assets Market: Commission adopts delegated acts under MiCA
Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets (MiCA) regulates crypto-asset providers as well as public offering of crypto-assets and admission on a trading platform of crypto-assets. These rules includes transparency and disclosure requirements for issuance and public offering or admission to trading of crypto-assets and authorization and supervision of crypto-assets providers.
On February 22nd, 2024, the European Commission established further details about these rules (4 delegated acts). The rules has been adopted by the Commission, next step will be the publication of the rules in the Official Journal of the EU.
Key takeaways:
MiCA Delegated Regulation on Penalties
Issuers of significant asset-referenced tokens (ART) and issuers of significant e-money tokens (EMT) are to be supervised by EBA and not the home-country supervisor. This delegated act lays down procedural rules to be adhered to by EBA for the exercise of the power to impose fines or periodic penalty payments, including provisions on the rights of the defence, temporal provisions etc, when a significant ART or EMT infringes rules laid down in Annex V or VI of MiCA Regulation.MiCA Delegated Regulation on criteria for significance
This act further defines the "significance" of activities for issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs). Specifically, it establishes criteria for determining whether issuers are significant on an international scale outside the European Union and whether the tokens or their issuers are interconnected with the financial system.MiCA Delegated Regulation on EBA Supervisory Fees
EBA can charge annual supervisory fees for supervising significant ARTs and EMTs. This delegated act provides clarity on what costs are included in the fees and the method of calculation of the fees.MiCA Delegated Regulation on Product Intervention Powers
Under MiCA, the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) can temporarily prohibit or restrict the marketing, distribution, or sale of certain crypto-assets through "product intervention measures." These measures can only be implemented when there is a significant risk of investor harm or a threat to the orderly functioning and integrity of the crypto-asset markets. The recently adopted delegated act further clarifies the criteria and factors that determine what constitutes "significant investor concern" and a threat to "orderly functioning and integrity" in this context.
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