CySEC consulting market on fees payable and information to be reported under MiCAR

The Cyprus Securities and Exchange Commission (CySEC) has published a Consultation Paper (CP-01-2024) seeking input on the proposed fees payable and certain information to be submitted by specific entities.

These are entities falling within the scope of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (MiCAR), a CySEC press release notes.

MiCAR introduces a harmonized framework in relation to crypto-assets that are fungible and do not qualify as financial instruments or any other crypto-asset excluded from its scope.

The three regulatory categories of crypto-assets that fall within MiCAR’s scope are:

• Asset-referenced tokens (ARTs), regulated under Title III of MiCAR;
• Electronic money tokens (EMTs), which are regulated under Title IV of MiCAR. EMTs demonstrate many similarities in terms of economic function and regulation with electronic money; and
• Crypto-assets other than ARTs and EMTs, which are regulated under Title II of MiCAR, hence forming a residual category.

The new categories of supervised entities being introduced by MiCAR, the supervision of which is expected to be assigned to CySEC, consist of the following:

• Offerors of crypto-assets other than ARTs and EMTs;
• Issuers of ARTs, excluding issuers of ARTs that are credit institutions; and
• Crypto-Asset Service Providers (CASPs), being the entities authorised to provide services in relation to crypto-assets and those regulated under sectoral law, which are subject to CySEC’s supervision and which are permitted to provide equivalent services in crypto-assets on a notification basis.

Interested parties are encouraged to submit their responses to the consultation to the CySEC Policy Department by email at policy@cysec.gov.cy no later than 17 July 2024, as per the guidance provided in CP-01-2024.