DLA Piper presentation for B4B launch event

1. Blockchain4Belgium - 30 March 2023
Looking Ahead: which opportunities will
the future European crypto-assets
regulations bring?
Nicolas Kalokyris – DLA Piper

2. www.dlapiper.com
 Introduction and context
 Upcoming European legislation on crypto-assets
 The Markets in Crypto-Assets Regulation (MiCA):
general overview
 MiCA: which opportunities for the crypto markets?
2
Agenda

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EC – Fintech Action Plan (2018)
ESMA & EBA - Reports on crypto-assets (2019)
Entry into force of AMLD V (2020)
EC – Digital Finance Package (2020)
EC – AML Package (2021)
1
2
3
4
Introduction and context
The European Regulatory Framework
5

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Digital Finance Package (September 2020)
4
AML Package (July 2021)
• MiCA - Proposal for Markets in Crypto-Assets
Regulation (MiCA) – publication expected in
April 2023
• DLT Pilot Regime – Regulation (EU)
2022/858 on a pilot regime for market
infrastructures based on distributed ledger
technology
• DORA - The Digital Operational Resilience
Act (DORA) - Regulation (EU) 2022/2554
• TFR – Recast of the Transfers of Funds
Regulation (2015/847) in order to include
transfers of crypto-assets
Upcoming European legislation on crypto-assets

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The Markets in Crypto-Assets Regulation (MiCA):
general overview

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Objectives
• Establish a regulatory
framework for crypto-
asset services across
the EU
• Legal certainty
• Support innovation
• Ensure
consumer/investor
protection and market
integrity
• Ensure financial
stability
Issuance of
crypto-assets
• Publication of a white
paper
• Core information on
the project
• Transparency and
disclosure
requirements
Provision of
crypto-asset
services
• Regulatory
requirements
• Prior authorization
The Markets in Crypto-Assets
Regulation (MiCA)

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Taxonomy of crypto-assets under MiCA
CRYPTO-ASSETS COVERED BY MICA CRYPTO-ASSETS NOT COVERED BY MICA
Asset-reference tokens (stablecoins)
E-money tokens
Utility tokens
Other crypto-assets (residual category)
Non-fungible tokens (NFTs)
Crypto-assets already subject to other FS
Regulations (e.g. financial instruments)

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Issuance of crypto-assets under MiCA
Regulated services:
• Issuance of crypto-assets;
• Offering to the public of crypto-assets;
• Admission to trading of crypto-assets.
Requirements:
• Publication of a white paper
• Organisational and operational
requirements, e.g.:
 Reserve of assets/safeguard of funds
 Ongoing regulatory capital
requirements
• Additional requirements for significant ART/
EMT

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Provision of crypto-assets services under MiCA
The provision of crypto-asset
services shall in principle require
prior authorization as ‘crypto-
asset service provider’ (CASP)
from the national competent
authority
MiCA will regulate the provision of ‘crypto-asset
services’, including:
• The custody and administration of crypto-assets;
• the operation of a crypto trading platform;
• exchange services;
• the execution of orders for crypto-assets;
• placing of crypto-assets;
• providing advice on crypto-assets;
• providing portfolio management on crypto-assets.

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Principal registration requirements as CASP under MiCA
Disclosure
and
transparency
requirements
Capital
requirements
Governance
requirements
Operational
and
organizational
requirements
Conduct of
business

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MiCA: which opportunities for the crypto markets?
11

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1. Legal certainty
 Brings legal certainty in a sector largely unregulated until now
 Harmonization of requirements at EU level though a directly applicable Regulation
 Affirm the credibility of the crypto sector to the market, e.g. financial institutions and
institutional investors
MiCA: which opportunities for the crypto markets?

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MiCA: which opportunities for the crypto markets?
2. Introduction of a European passport
Once authorized, CASPs will benefit from the
passport under MiCA:
• The passport will allow CASPs to offer and provide
crypto-asset services across all Member States of the
EU, either:
 Through a local branch; or
 On a cross-border basis
• The passport will ease the possibility to scale up
crypto activities at EU level

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DLA Piper is a global law firm operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com.
This publication is intended as a general overview and discussion of the subjects dealt with, and does not create a lawyer-client relationship. It is not intended to be, and should not be used
as, a substitute for taking legal advice in any specific situation. DLA Piper will accept no responsibility for any actions taken or not taken on the basis of this publication. This may qualify as
“Lawyer Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.
Copyright © 2023 DLA Piper. All rights reserved.
Thank you for your attention!
Nicolas Kalokyris
T +32 (0)2 500 1652
Nicolas.Kalokyris@dlapiper.com
LAWYER
Financial Services &
Fintech Department
DLA Piper UK LLP