CASPs that are certain financial institutions
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Requirements
Certain financial institutions may provide certain crypto-asset services without going through the authorisation process if they provide notification of certain information to the competent authority and are then allowed to provide those certain crypto-asset services by the competent authority pursuant to Article 60 of MiCAR. The list can be found below.
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Financial institution
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The right to offer a specific crypto-asset service without obtaining a licence
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Equivalent financial service now
(authorised to offer now)
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A credit institution
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May provide any crypto-asset service
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-
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A central securities depository authorised under Regulation (EU) No 909/2014 of the European Parliament and of the Council (45)
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Shall only provide the custody and administration of crypto-assets on behalf of clients
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-
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An investment firm authorised under Directive 2014/65/EU
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The custody and administration of crypto-assets on behalf of clients
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Is equivalent to the ancillary service referred to in Section B, point (1), of Annex I to Directive 2014/65/EU.
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The operation of a trading platform for crypto-assets
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Is equivalent to the operation of a multilateral trading facility and an organised trading facility referred to in Section A, points (8) and (9), respectively, of Annex I to Directive 2014/65/EU.
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The exchange of crypto-assets for funds
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Is equivalent to dealing on one’s own account, referred to in Section A, point (3), of Annex I to Directive 2014/65/EU.
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The exchange of crypto-assets for other crypto-assets
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The execution of orders for crypto-assets on behalf of clients
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Is equivalent to the execution of orders on behalf of clients referred to in Section A, point (2), of Annex I to Directive 2014/65/EU.
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The placing of crypto-assets
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Is equivalent to the underwriting or placing of financial instruments on a firm commitment basis and the placing of financial instruments without a firm commitment basis referred to in Section A, points (6) and (7), respectively, of Annex I to Directive 2014/65/EU.
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The reception and transmission of orders for crypto-assets on behalf of clients
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Is equivalent to the reception and transmission of orders in relation to one or more financial instruments referred to in Section A, point (1), of Annex I to Directive 2014/65/EU.
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Providing advice on crypto-assets
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Is equivalent to investment advice referred to in Section A, point (5), of Annex I to Directive 2014/65/EU
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Providing portfolio management on crypto-assets
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Is equivalent to portfolio management referred to in Section A, point (4), of Annex I to Directive 2014/65/EU
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An electronic money institution authorised under Directive 2009/110/EC
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Shall only provide the custody and administration of crypto-assets on behalf of clients and transfer services for crypto-assets on behalf of clients with regard to the e-money tokens (EMTs) it issues
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A UCITS management company or an alternative investment fund manager authorised under Directive 2009/65/EC or Directive 2011/61/EU
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The reception and transmission of orders for crypto-assets on behalf of clients
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Is equivalent to the reception and transmission of orders in relation to financial instruments referred in Article 6(4), point (b)(iii), of Directive 2011/61/EU
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Providing advice on crypto-assets
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Is equivalent to investment advice referred to in Article 6(4), point (b)(i), of Directive 2011/61/EU and in Article 6(3), point (b)(i), of Directive 2009/65/EC
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Providing portfolio management on crypto-assets
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Is equivalent to the services referred to in Article 6(4), point (a), of Directive 2011/61/EU and in Article 6(3), point (a), of Directive 2009/65/EC
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A market operator authorised under Directive 2014/65/EU
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May operate a trading platform for crypto-assets
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The above financial institutions shall provide certain documents to the Bank of Lithuania for review, as specified in Article 60(7) of MiCAR.
Where these financial institutions provide certain crypto-asset services as specified in Article 60 of MiCAR, they shall not be subject to Articles 62, 63, 64, 67, 83 and 84 of the MiCAR.
These financial institutions shall not offer any crypto-asset services in the Union for as long as the competent authority deems its notification to be incomplete (Article 60(8)).
Review period
Certain financial institutions that want to provide certain crypto-asset services without going through the authorisation process must provide notification of certain information (Article 60(7)) to the competent authority at least 40 working days before providing those services for the first time.
Within 20 working days of receiving a notification, the competent authority assesses whether all required information has been provided. Where the competent authority concludes that notification is not complete, it shall immediately inform the notifying entity thereof and set a deadline by which that entity is required to provide the missing information. The deadline for providing any missing information shall not exceed 20 working days from the date of the request. Until the expiry of that deadline, the evaluation period shall be suspended.
The minimum amount of time for the competent authority to review the documents is 40 working days, while the maximum amount is 60 working days.
However, these financial institutions shall not offer any crypto-asset services in the Union for as long as the competent authority deems its notification to be incomplete (Article 60(8)).
Start of the provision of crypto-asset services
The CASP shall begin providing crypto-asset services when the competent authority deems its notification to be complete.
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CASPs that are not subject to exemptions
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Requirements
Legal persons or other undertakings that are not certain financial institutions (specified in Article 60) and that intend offer crypto-asset services must submit their application for authorisation to the competent authority.
A person who is not a CASP shall not use a name or a corporate name, issue marketing communications, or undertake any other process suggesting that it is a CASP or creating confusion in that respect.
CASPs authorised in accordance with Article 63 shall have a registered office in a Member State where they carry out at least part of their crypto-asset services. They shall have their place of effective management in the Union and at least one of the directors shall be resident in the Union.
Legal persons or other undertakings that intend to provide crypto-asset services shall submit their application for authorisation as a CASP to the competent authority of their home Member State. The application shall contain all of the following information:
Review period
Legal persons or other undertakings that are not certain financial institutions (specified in Article 60) and that intend offer crypto-asset services in the Union must submit their application for authorisation to the competent authority.
- Competent authorities shall, within 25 working days of the receipt of an application, assess whether that application is complete by checking that the information listed in Article 62(2) of MiCAR has been submitted. Where the application is not complete, competent authorities shall set a deadline by which the applicant CASP is to provide any missing information. Competent authorities may refuse to review applications where such applications remain incomplete after the expiry of the deadline set by them.
- Competent authorities shall, within 40 working days from the date of receipt of a complete application, assess whether the applicant CASP complies with Title V and shall adopt a fully reasoned decision granting or refusing authorisation as a CASP.
Competent authorities may, during the assessment period and no later than on the 20th working day of that period, request any further information that is necessary to complete the assessment. Such requests shall be made in writing to the applicant CASP and shall specify the additional information needed. The assessment period shall be suspended for the period between the date of the request for missing information by the competent authorities and the receipt by them of a response thereto from the applicant CASP. The suspension shall not exceed 20 working days. Any further requests by the competent authorities for the completion or clarification of the information shall be at their discretion, but shall not result in the suspension of the assessment period.
The standard amount of time for the competent authority to evaluate the application and make a decision is 65 working days.
The duration of the assessment of the application depends on the scope and quality of the application. Regular communication and appropriate meetings with the applicant shall take place throughout the evaluation period.
Grounds to refuse authorisation
Competent authorities shall refuse authorisation if the laws, regulations or administrative provisions of a third country governing one or more natural or legal persons with which the applicant CASP has close links, or difficulties involved in their enforcement, prevent the effective exercise of their supervisory functions.
Competent authorities shall refuse authorisation as a CASP where there are objective and demonstrable grounds that:
- the management body of the applicant CASP poses a threat to its effective, sound and prudent management and business continuity, and to the adequate consideration of the interest of its clients and the integrity of the market, or exposes the applicant CASP to a serious risk of money laundering or terrorist financing;
- the members of the management body of the applicant CASP do not meet the criteria set out in Article 68(1) of MiCAR;
- the shareholders or members, whether direct or indirect, that have qualifying holdings in the applicant CASP do not meet the criteria of sufficiently good repute set out in Article 68(2) of MiCAR;
- the applicant CASP fails to meet or is likely to fail to meet any of the requirements of Title V of MiCAR.
Start of the activities
Legal persons or other undertakings that are not certain financial institutions can offer crypto-asset services in the Union only if they were authorised (licence) by the competent authority under MiCAR.
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