Main changes
Licenses for crypto-asset service providers (CASPS)
CASPS, including crypto exchanges and wallet providers, must apply for a license and meet strict operational and organizational standards. This will lead to a more regulated and possibly safer environment for users of these services, since CASPS must meet strict requirements with regard to their financial robustness, security protocols and consumer protection mechanisms.
Improved consumer protection
Micar introduces a package of measures including clear information provision and transparency requirements. CASPS must provide extensive information about the risks associated with their products and services. This will contribute to a better informed decision -making by consumers and can help them better understand the complexity and possible risks of crypto investments.
Strict regulations regarding market manipulation and insider trade
The regulations contain strict prohibitions on market manipulation and insider trade in the crypto sector. These measures are intended to promote fair and transparent commercial practices, which should lead to a more reliable and more stable market for crypto-assets.
Requirements of a "white paper" when issuing new tokens
As with traditional financial prospectuses, publishers of new crypto-assets have to publish detailed White Papers that contain extensive information about the project and the risks involved. This ensures greater transparency and enables potential investors to make informed decisions.
Focus on stability and safety of stablecoins
Specific rules for stablecoins, including requirements for supporting these tokens and managing risks, are designed to prevent large fluctuations in value. This can lead to greater acceptance of stablecoins as a means for transactions and value storage.
Consequences and further implications introduction Micar
These regulations will probably have a major impact on both existing and new players in the crypto sector. Companies will have to adjust their activities and processes to comply with the new rules, which could lead to initial costs and operational challenges. On the other hand, this regulation can contribute to greater legitimacy and acceptance of crypto assets as part of the broader financial sector.
For consumers and investors, Micar means a greater degree of protection and transparency. This can increase trust in digital assets investments and possibly promote more mainstream acceptance of these technologies. All in all, Micar is an important step forward in recognizing and regulating the growing crypto sector. By creating a structured framework for regulations, Micar strives to align the crypto sector more with the general financial markets, which can lead to more innovation, growth and integration with the traditional financial system.
In addition to the aforementioned changes, Micar will also lead to:
Stricter compliance: organizations that operate in the crypto sector will have to adapt to the new compliance requirements. This includes issues such as implementing strict anti-money laundering procedures, drawing up detailed risk analyzes and sharpening customer verification processes.
Larger role for supervisors: Supervisors in the EU Member States will play a more active role in supervising and enforcing the rules for crypto-assets. This will probably lead to an increased supervision and possibly more investigations and sanctions in non-compliance.
Impact on innovation and development: Although stricter regulations can lead to a higher threshold for new players to enter the market, it can also lead to more standardized and reliable products and services, which can stimulate the growth of the sector in the long term.
International cooperation and standardization: Micar can serve as a framework for similar regulatory efforts worldwide, which can lead to more international cooperation and standardization in the regulations of crypto-assets.
Micar in the Netherlands
In the Netherlands, the implementation of the Markets in Crypto-Assets Regulation (MICAR) is provided by the Ministry of Finance, in close cooperation with the Netherlands Authority for the Financial Markets (AFM) and De Nederlandsche Bank (DNB). As mentioned, Micar aims to offer a robust legal framework for the regulation of crypto-assets and to crypto-related services within the European Union, including the Netherlands.
The supervision of compliance with Micar in the Netherlands is divided between the AFM and DNB. DNB is, for example, leading in the supervision of the issue of stablecoins, such as asset-referenced tokens (arts) and electronic money tokens (EMTs). The AFM in turn is leading in the supervision of crypto service providers (Crypto Asset Service Providers, CASPS), other crypto-assets, and the supervision of the prevention of market abuse.
Conclusion
In simple terms, Micar is a new package of measures for the crypto market in the EU. It sets clear rules and standards for companies that work with crypto-assets, comparable to the rules that apply to traditional financial companies. For consumers this means more protection and clarity when they invest in crypto-assets. For companies it means that they have to meet stricter requirements, which can lead to safer and more reliable services. While the sector adapts to these new rules, we can expect the crypto market to be more mature and more integrated with the general financial sector.
The introduction of Micar marks an important moment for the crypto industry in Europe, where the focus is on offering stability, transparency and safety for all involved. From BitStaete we are currently (December 2023) in the process of applying for the Micar permit at the AFM.
This article was compiled by the BitStaeteInvestment Team. If you want to know more about the professional investing in Digital Assets, please contact us.
