The Dutch Authority for the Financial Markets
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The Markets in Crypto-Assets Regulation (MiCAR) has come into effect on December 30, 2024. With this newsletter, the AFM wants to inform the sector about important news and developments regarding MiCAR supervision. Want to subscribe to the AFM MiCAR newsletter? |
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As of December 30, 2024, MiCAR came into effect, and we have granted three Crypto Asset Service Provider (CASP)-licences and verified completeness of one CASP-notification. This marks an important milestone for both the market and the AFM. On our website, a register listing all CASPs that have obtained an authorisation or notification from the AFM can be viewed, while ESMA maintains a register of all CASPs licenced in Europe. The AFM register also includes information about CASPs, who have obtained an authorisation or notification from another National Competent Authority in the EU and may provide cross-border crypto-asset services in The Netherlands. |
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Room for improvement in documentation |
We observe that there is room for improvement in the documentation submitted by CASP-licence applicants and CASP-notifying parties. In several instances, policies and procedures appear overly generic or off-the-shelf, making them incomplete and insufficiently tailored and as such cannot be considered complete. A policy should be clearly defined, specific to the operational context of the CASP, and comprehensible as a standalone document. Boilerplate language should be avoided or explained. Similarly, procedures should provide clear, step-by-step instructions to guide employees in their daily activities. Please note that we will refuse to review applications which remain incomplete after the applicant was not able to provide the requested missing information within the set deadline (see Article 63(3) MiCAR). |
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CASP-notification procedure timeframe |
In our previous newsletter from December, we mistakenly mentioned that, according to MiCAR legal terms, the timeframe for the completeness check regarding the CASP notification procedure would be shortened from 60 to 40 working days. The original 60-day timeframe still applies, giving more time to determine whether a CASP notification is complete or incomplete. However, we like to emphasise that even with a legal term of 60 working days, there is still limited room for an iterative process given the large amount of information which must be checked for completeness. |
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MiCAR requirements for advertising and the provision of information |
MiCAR includes, among other things, requirements for advertising and the provision of information about costs. The AFM has conducted exploratory investigations and highlights a number of important aspects that are relevant for CASPs. The importance of the norms governing the provision of information, both for licenced CASPs and those pending authorisation, is emphasised. Now that MiCAR is fully in effect, the AFM supervises the provision of information and how CASPs shape their internal policies in this regard. |
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Updated ICT risk management and DORA Q&As |
The Q&As on ICT risk management and DORA for CASPs have been updated to provide more detailed guidance on what is expected from CASPs applying for a MiCAR license, particularly in relation to ICT risk management and DORA compliance. |
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The AFM has published an overview of its priorities and other supervisory activities for the coming year in its annual supervisory agenda. It highlights the potential impact of reliance on big tech in the financial sector and notes that geopolitical tensions are straining international relations. |
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ESMA publishes new supervisory briefing |
The European Securities and Markets Authority (ESMA) has published a new supervisory briefing to align practices across EU member states. This initiative, developed in close collaboration with National Competent Authorities (NCAs), aims to foster convergence, prevent regulatory arbitrage, and provide clear guidance on the authorisation process for CASPs under MiCAR. The briefing highlights key topics such as substance and governance, outsourcing, and personnel suitability. |
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Guidance on non-MiCA compliant ARTs and EMTs |
ESMA published a statement reinforcing the position related to the offer of ARTs and EMTs (also known as stablecoins) in the EU under Market in Crypto Assets regulation (MiCAR). The statement provides guidance on how and under which timeline CASPs and VASPs are expected to comply with the requirements of Titles III and IV of MiCAR, as clarified in the European Commission Q&A. |
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ESMA statement on MiCAR transitional measures |
ESMA has issued a statement on transitional measures and a list of grandfathering periods under MiCAR. These transitional periods are crucial for CASPs operating prior to 30 December 2024, providing them with a limited timeframe to obtain a licence under MiCAR. |
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ESMA consults on criteria for knowledge and competence |
ESMA launched a consultation on the criteria for assessing the knowledge and competence of CASP staff providing information or advice on crypto-assets or services. ESMA seeks input on minimum staff knowledge requirements, organisational standards for assessment, and guidelines to ensure adequate expertise, enhancing investor protection and trust in crypto markets. |
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The AFM is committed to promoting fair and transparent financial markets. As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.
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