The authorisation of crypto-asset service providers (CASPs) in the EU under the Markets in Crypto-Assets Regulation (MiCAR)

As its title denotes, this study develops on the authorisation of crypto-asset service providers (CASPs) in the European Union (EU) under the Markets in Crypto-Assets Regulation (MiCAR). It is structured in three Sections as follows: Section A develops on the relevant provisions of MiCAR relating to the conditions for a person to be allowed to provide crypto-asset services within the EU and the single passport regime (Article 59), as well as the application for authorisation (Article 62 and the related Delegated and Implementing Regulations), and the assessment of that application by national competent authorities (NCAs), leading to the granting or refusal of authorisation (Article 63) in accordance with the “three step” procedure set out in these two Articles. The focus of Section B turns to some specific related provisions, namely, the governance arrangements under Article 68 and the identification, prevention, management and disclosure of conflicts of interest under Article 72. Read together with Articles 62-63, these Articles reflect the MiCAR’s emphasis on effective corporate governance, sound risk management and the mitigation of conflicts of interest as essential safeguards for the provision of crypto-asset services. The concluding remarks are included in Section C.