Issuers of ARTs that are credit institutions
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Requirements
The requirements for the issuers of ARTs that are credit institutions are set out in Article 17 of MiCAR.
A credit institution that intends offer an ART to the public or seek its admission to trading within the Union must apply to the Bank of Lithuania for an approval for such activities (not for a licence) and provide certain documents for evaluation. These are the crypto-asset white paper and the documents mentioned below:
The credit institution shall not make an offer to the public or seek the admission to trading of an ART as long as the notification is incomplete and if the crypto-asset white paper has not been approved by the competent authority.
A credit institution that issues ARTs, including significant ARTs, shall not be subject to Articles 16, 18, 20, 21, 24, 35, 41 and 42 of MiCAR.
Review period
A credit institution notifies the competent authority at least 90 working days before issuing the ART for the first time by providing it with the required information as specified in Article 17 of MiCAR.
The competent authority receiving a notification shall, within 20 working days of receipt of the information, assess whether the required information has been provided. Where the competent authority concludes that a notification is not complete because information is missing, it shall immediately inform the notifying credit institution thereof and set a deadline by which that credit institution 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 credit institution shall not make an offer to the public or seek the admission to trading of an ART within the Union as long as the notification is deemed to be incomplete and if the crypto-asset white paper has not been approved by the competent authority.
Start of activities
A credit institution can make an offer to the public or seek the admission to trading of an ART within the Union only if (Article 17):
- the notification from the credit institution to the competent authority is deemed to be complete;
- the crypto-asset white paper has been approved by the competent authority.
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Issuers of ARTs that are not credit institutions and do not fall under exemptions
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Requirements
Legal persons or other undertakings that are not credit institutions and do not fall within the exemptions and that intend to offer to the public or seek the admission to trading of an ART must apply to the competent authority for authorisation.
The requirements for the issuers of ARTs that are not credit institutions and do not fall within the exemptions are set out in Article 18 of MiCAR.
Legal persons or other undertakings that are not credit institutions and do not fall within the exemptions and that intend to offer to the public or seek the admission to trading of an ART shall submit their application along with the following information:
Review period
Legal persons or other undertakings that are not credit institutions and do not fall within the exemptions and that intend to offer to the public or seek the admission to trading of an ART shall submit their application for authorisation to the competent authority as described in Article 18 of MiCAR.
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.
Within 25 working days of receiving an application for authorisation, competent authorities shall assess whether that application comprises all of the required information. Where the application is not complete, competent authorities shall set a deadline by which the applicant issuer is to provide any missing information. The assessment period shall be suspended for the period between the date of request for missing information by the competent authorities and the receipt by them of a response thereto from the applicant issuer.
Competent authorities shall, within 60 working days of receipt of a complete application, assess whether the applicant issuer complies with the requirements of Title III and take a fully reasoned draft decision granting or refusing authorisation. Within those 60 working days, competent authorities may request from the applicant issuer any information on the application. The assessment period shall be suspended for the period between the date of request for missing information by the competent authorities and the receipt by them of a response thereto from the applicant issuer. The suspension shall not exceed 20 working days.
Competent authorities shall, after the period of 60 working days, submit their draft decision and the application to the EBA, ESMA and ECB. Where the applicant issuer is established in a Member State whose official currency is not the euro, or where an official currency of a Member State that is not the euro is referenced by the ART, the competent authorities shall also transmit their draft decision and the application to the central bank of that Member State. The EBA and ESMA shall, at the request of the competent authority and within 20 working days of the receipt of the draft decision and the application, issue an opinion as regards their evaluation of the legal opinion referred to in Article 18(2), point (e), and transmit their respective opinions to the competent authority concerned. The ECB or, where applicable, the central bank referred to above, within 20 working days of the receipt of the draft decision and the application, issue an opinion as regards its evaluation of the risks that issuing that ART might pose to financial stability, the smooth operation of payment systems, monetary policy transmission and monetary sovereignty, and transmit its opinion to the competent authority concerned.
Competent authorities shall, within 25 working days of the receipt of the opinions referred to above, take a fully reasoned decision granting or refusing authorisation to the applicant issuer and, within 5 working days of taking that decision, notify the applicant issuer of it.
The minimum amount of time for the competent authority to evaluate the application and make the final decision is 130 working days, while maximum amount is 170 working days.
Start of activities
Legal persons or other undertakings that are not credit institutions and do not fall within the exemptions cannot offer to the public or seek the admission to trading of an ART unless authorisation has been granted by the competent authority under MiCAR.
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Issuers of ARTs that are subject to exemptions
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Requirements
Issuers of ARTs who are subject to exemptions as specified in Article 16(2) of MiCAR shall:
- draw up a crypto-asset white paper as provided for in Article 19 (and Annex II),
- notify the competent authority of the crypto-asset white paper and marketing communications (upon request).
The crypto-asset white paper shall be drawn up in an official language of the home Member State, or in a language customary in the sphere of international finance. Where the ART is also offered in a Member State other than the issuer’s home Member State, the crypto-asset white paper shall also be drawn up in an official language of the host Member State, or in a language customary in the sphere of international finance.
All the information listed in the crypto-asset white paper shall be fair, clear and not misleading. The crypto-asset white paper shall not contain material omissions and shall be presented in a concise and comprehensible form. Any significant new factor, material mistake or material inaccuracy that is capable of affecting the assessment of the ART shall be described in a modified crypto-asset white paper drawn up by the issuers, notified to the competent authorities and published on the issuers’ website. The white paper shall comply with all requirements set out in Article 19 and Article 25.
Marketing communications shall be notified to the competent authorities upon request. The information in the marketing communications shall be fair, clear and not misleading. The marketing communications shall comply with the requirements set out in Article 29.
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