Also: good practices for white papers, and more
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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Ongoing supervision meet-up |
The AFM will host an information session on November 10 for CASPs and parties at an advanced stage of the authorization process who are expected to be authorized this year.
During this session, the AFM will provide general information on what CASPs can expect from our ongoing supervision once authorized. Following a presentation by the AFM, participants will have the opportunity to ask questions directly to the MiCAR supervision team.
The purpose of this meeting is to support CASPs in preparing for their supervisory obligations under MiCAR, and to facilitate an open dialogue on any challenges CASPs and the AFM are facing in this regard. We encourage CASPs to submit any questions they have in this regard upfront. An invitation with practical details will follow shortly. We look forward to welcoming you at the AFM. |
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Best practices for submitting white papers |
The AFM observed that there is considerable room for improvement in the submission of white papers. To support submitters, we have published guidance on our website, including instructions on notification procedures and relevant regulatory standards.
Please note that a white paper notification is only considered effective if the white paper complies with the relevant MiCAR Implementing and Regulatory Technical Standards and includes all elements required under Article 109 of MiCAR for submission to the ESMA register. |
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Update proprietary trading |
In June, the European Commission provided clarification on whether firms engaging in proprietary trading in crypto-assets require a CASP license. The response suggests that some firms, where a client relationship is present, may fall within the scope of MiCAR.
Since the publication, the AFM has been further examining the practical implementation and causes for a client relationship to arise. We are considering the circumstances in which a client legitimately relies on the firm to protect his or her interests. For instance, who initiates the transaction, how it is executed, and whether any commission is involved are relevant factors to consider whether a client relationship arises.
As a leading supervisory authority in the proprietary trading sector, the AFM supports a timely and forward-looking approach, and is actively engaging to foster European supervisory convergence to maintain a level playing field.
The AFM is proactively working to provide additional clarity in the short term on this matter. |
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ESMA has published new Q&As on commingling clients’ crypto-assets with crypto-assets from other entities within the group when acting as a custodian, staking of client crypto-assets on own account and cost transparency, pre-funding clients’ orders with clients’ crypto-assets, and the shared order book model.
The AFM expects CASPs to take note of and follow ESMA’s Q&As, making any necessary adjustments accordingly, if needed. |
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Avoiding misperceptions unregulated services |
ESMA published a statement providing guidance for CASPs offering unregulated services. ESMA reminds CASPs of their obligation to act fairly, professionally and in accordance with the best interests of their clients and prospective clients. When offering both regulated and unregulated services, CASPs must avoid creating confusion or misleading clients or prospective clients as to whether the service benefits from the protections afforded by MiCAR.
ESMA warns that the practice of CASPs offering both MiCAR regulated and unregulated products and services gives rise to investor protection risks. |
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Guidelines on market abuse into application |
The ESMA Guidelines on supervisory practices for competent authorities to prevent and detect market abuse under MiCAR entered into application on September 9.
These guidelines are based on Article 92(3) of MiCAR and Article 16 of the ESMA Regulation. The objective of these guidelines is to ensure consistency between competent authorities’ supervisory practices to prevent and detect market abuse involving crypto assets |
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RTS conflict of interest into force |
The regulatory technical standards specifying the requirements for policies and procedures on conflicts of interest for CASPs and the details and methodology for the content of disclosures on conflicts of interest has come into force on June 30. |
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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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