Earlier this month the Markets in Crypto-Assets Regulation (MiCAR) has been published in the Official Journal of the EU with a first set of regulations entering into force from end of June 2023. The regulation sets down a harmonized regulatory framework for crypto-assets issuers and service providers (CASPs) aiming at financial stability for this sector with full requirements applying from 30 December 2024.
Main requirements of MiCAR will cover authorization, rules of conduct and supervision of crypto exchanges and CASPs. Among the rules of conduct, CASPs will be subject to stringent transparency obligations towards consumers, notably regarding inherent risks involved in dealing with crypto assets. MiCAR also contains measures to prevent insider trading, unlawful disclosure of insider information and market manipulation related to crypto assets.
MiCAR will apply primarily in the EU but the recitals and articles of the regulation indicate that a third country entity actively soliciting clients based in the EU would be subject to the authorization requirements of such regulation.
In Monaco, Law 1.528 dated 7 July 2022 has implemented further requirements on certain crypto asset related activities, in addition to those already in force in respect of ICOs. Under Law 1.528 a specific license is required by the Monaco State to provide crypto asset services within the Principality, awaiting technical provisions in an upcoming ordinance regarding the licensing process and the composition of the consultative body in charge of reviewing license applications.
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