ESMA_QA_2295
Status: ✅ Answer Published
Regulatory Context
Level 1 Regulation: MiCA
Topic: Crypto-Asset Service Provider (CASP)
Subject Matter: Status of entities providing crypto-asset services as part of the grandfathering regime
Question
Submission Date: 02-10-2024
Are Crypto-asset service providers that provided their services in accordance with applicable law before 30 December 2024 and which are authorised to continue to considered to be crypto-asset service providers under the terms of MICA during the transitional period until they are authorised?
ESMA Answer
Answer Date: 02-10-2024
No. Crypto-asset service providers that provided their services in accordance with applicable law before 30 December 2024 can continue to do so until the end of the applicable transition period (and not later than 1 July 2026), or until they are granted an authorisation, in accordance with MiCA.
Crypto-asset service providers authorised to perform their activities during the transitional period are not authorised within the meaning of this Article 3(1)(15) of MICA and therefore do not constitute “crypto-asset service providers” under the terms of MICA. The requirements of MiCA are therefore not applicable to them until they are granted an authorisation pursuant to Article 63.
As a consequence of the foregoing, when, under MiCA, an authorised crypto-asset service provider is subject to requirements in relation to another entity providing crypto-asset services’ compliance with requirements for crypto-asset service providers, the authorised crypto-asset service provider may consider that these requirements are deemed to be complied with by an entity providing crypto-asset services under the transitional regime until such entity ceases to benefit from the applicable transitional period. therefore continue to provide its services to an authorised crypto-asset services provider, until the end of the applicable transitional period. Inversely, an authorised crypto-asset services provider can have recourse to such entity under the transitional regime until the end of the applicable transitional period, including in the context of Article 75(9) of MiCA.
In the absence of a transitional period under Regulation (EU) 2023/1113, this clarification should not be read as exempting any entities providing crypto-asset services from fulfilling their obligations under that Regulation.
As a reminder, please see Q&A 2086 in relation to the provision of cross-border services during the transitional period.
This document was automatically extracted from the ESMA EMIR Q&A database.