What is the MiCA Regulation:
The MiCA (Markets in Crypto-Assets) regulation is a legal framework initiated by the European Union to regulate the crypto-assets market. This regulation will come into effect on December 30, 2024, where companies providing crypto-related services without a MiCA license will lose the right to continue their operations.
Goals of the MiCA Regulation:
- Replace regulatory measures in different countries with a single regulatory framework applicable across the EU.
- Establish clear rules for crypto-asset service providers and token issuers.
- Provide greater clarity in crypto-asset regulations that are not covered by existing financial regulatory laws.
Stages of MiCA licensing:
1. Due Diligence: Analysing business model, introduction of required documentation.
2. Document Preparation: Preparing and completing all necessary documents.
3. Document Submission: Submitting documents to the Bank of Lithuania and receiving confirmation that all required documents have been provided.
4. Document Evaluation: The Bank of Lithuania evaluates submitted documents. Additional clarification inquiries from the Bank of Lithuania are common at this stage.
5. Interview: An interview with the Bank of Lithuania regarding the competencies of managers, planned crypto-related services, risk management, and further process.
6. Licensing Decision: Receiving a response from the Bank of Lithuania regarding the MiCA license within 45 days from the application submission.
The estimated duration for obtaining a MiCA license is 3-6 months.
Key Requirements for Obtaining a MiCA License:
- A legal entity registered in Lithuania;
- A Money Laundering Reporting Officer (MLRO) operating in Lithuania;
- Client onboarding, KYC, and AML reporting requirements;
- Capital of 50,000-125,000 EUR (based depending on crypto-asset services).
Documentation to be submitted with the license application:
- Information about the company;
- Articles of association of the crypto-asset service provider;
- Business plan;
- Proof of compliance with prudential requirements;
- Description of the management measures of the crypto-asset service provider;
- Identity and shareholding details of all shareholders and members, and proof of their good reputation;
- Description of internal control mechanisms, strategies, and procedures;
- Technical documentation and non-technical description of IT systems and
- security measures;
- Description of procedures for separating clients’ crypto-assets and funds;
- Description of complaints handling procedures;
- Description of the types of crypto-assets related to the crypto-asset services to be provided.
Additional documentation to be submitted based on the services:
- Where the applicant crypto-asset service provider intends to exchange crypto-assets for funds or other crypto-assets, a description of the commercial policy and a description of the methodology for determining the price of the crypto-assets;
- Where the applicant crypto-asset service provider intends to provide custody and administration of crypto-assets on behalf of clients, a description of the custody and administration policy;
- Where the applicant crypto-asset service provider intends to operate a trading platform for crypto-assets, a description of the operating rules of the trading platform and of the procedure and system to detect market abuse
- Where the applicant crypto-asset service provider intends to execute orders for crypto-assets on behalf of clients, a description of the execution policy;
- Where the applicant crypto-asset service provider intends to provide advice on crypto-assets or portfolio management of crypto-assets, proof that the natural persons have the necessary knowledge and expertise to fulfil their obligations ;
- Where the applicant crypto-asset service provider intends to provide transfer services for crypto-assets on behalf of clients, information on the manner in which such transfer services will be provided.
We can help!
We will help you meet all MiCA regulation and Bank of Lithuania requirements for obtaining a license;
We will assist in gathering all necessary information for the application and preparing all required documents;
We will provide legal consultations on any questions that arise during the licensing process.
Sintesi Consulting has extensive experience in the licensing process. Throughout the entire process, we ensure professional and high-quality services for our clients.
Learn more about crypto-asset service providers’ licensing here.
If you have any questions, feel free to contact us!
Email: martynas.kalvaitis@sintesi.lt Phone : +370 656 96055