Navigating MiCA: ESMA clarifies stance on non-compliant ARTs & EMTs

ESMA published a statement on 17 January 2025 outlining key guidance for Crypto-Asset Service Providers (CASPs) operating in the EU concerning Asset-Referenced Tokens (ARTs) and Electronic Money Tokens (EMTs) that do not comply with the Markets in Crypto-Assets Regulation (MiCA).

Key takeaways for CASPs:

• MiCA Compliance: Issuing, offering, and seeking admission to trading of ARTs and EMTs are regulated activities under MiCA Titles III and IV, applicable since 30 June 2024.

• Action Required: Drawing on European Commission guidance, CASPs must take action to align their services and avoid violating MiCA by offering to the public or seeking admission to trading of non-compliant ARTs/EMTs.

• Phased Transition: Recognizing potential market disruption from sudden changes, NCAs were to ensure compliance by CASPs regarding non-compliant ARTs/EMTs no later than the end of Q1 2025.

• Trading Platforms: CASPs operating trading platforms are specifically expected to stop making non-MiCA compliant ARTs and EMTs available for trading.

• Other Services: Services like reception/transmission of orders, execution, and exchange may also be affected if they constitute an offer to the public.

• Deadlines: Restrictions on existing services facilitating the acquisition of non-compliant ARTs/EMTs were expected to be in place by the end of January 2025. CASPs were allowed to maintain "sell only" services for these assets until the end of Q1 2025 to allow investors to exit positions.

• Investor Communication: CASPs should inform EU investors about the impact of MiCA, including restrictions on services.

📍In summary, CASPs should proactively work with the relevant national authorities to effectively manage the transition process, clearly informing investors of the changes and their implications.

The full statement can be found at the following link: https://buff.ly/zwaUYGu