With the entry into force of the EU Regulation on Markets in Crypto-assets (MiCA), a standardised regulatory framework for crypto-assets has been created. Numerous services relating to crypto assets will be subject to authorisation in future. In order to provide guidance to commercial investment advisors and companies, the Austrian Federal Economic Chamber, in cooperation with STADLER VÖLKEL, has produced two guidelines that summarise the important principles and requirements for service providers and advisors.
The guide to the legal situation of crypto assets provides an introduction to the most important terms and concepts of distributed ledger technology (DLT) in order to provide a basic understanding of the technical and legal aspects. These include blockchain, cryptocurrencies, wallets, private keys, NFTs and the various consensus mechanisms such as proof-of-work and proof-of-stake.
In addition, the guide provides an overview of the new regulatory framework, in particular the requirements of MiCA. These relate in particular to the issuance, trading and public offering of crypto assets and the associated services. The guide explains the scope of application of MiCA and the specific requirements for crypto asset service providers (CASPs), including the obligation to store crypto assets securely, the protection of client funds in the event of insolvency and the requirements for corporate governance and capitalisation.
The guide also focuses on the requirements for the public offering of crypto assets and the specific rules for different types of tokens set out in the MiCA Regulation. These include e-money tokens, asset referenced tokens and utility tokens, each of which is subject to different regulatory requirements.
The second guide is aimed specifically at commercial investment advisors and outlines the legal requirements and obligations that apply when advising on crypto assets. From 30 December 2024, MiCA will apply to all advisory services relating to crypto assets. Advisors have various options for offering their services within the new regulatory framework of MiCA. However, unlike previously, it will not be possible under MiCA to act as a tied agent for an authorised service provider.
In future, advisors on crypto assets must comply with all MiCA regulatory requirements. As a licence from the Financial Market Authority (FMA) is required for these activities, the guide provides a detailed overview of the licensing procedure and the most important requirements that advisors in Austria must fulfil.
A key innovation in the area of advice on crypto assets is the implementation of a so-called suitability test. In future, advisors will have to prove that their recommendations are based on a well-founded analysis and are tailored to the individual needs of the customer. This is not only intended to serve quality assurance, but also to promote trust in the crypto asset market. In addition to these regulatory aspects, the guidelines also deal with the possibilities of outsourcing advisory services and the requirements placed on service providers and advisors in order to comply with the legal requirements.
The two guides from the Austrian Federal Economic Chamber and STADLER VÖLKEL offer commercial investment advisors and companies in the crypto sector valuable guidance in an environment comprehensively regulated by MiCA. With practical explanations and concrete recommendations for action, the guides help to implement and comply with the new MiCA regulations.
The two guides can be downloaded from the WKO website here:
Further literature:
