CySEC publishes Policy Statement on fees regarding markets in crypto-assets

The Cyprus Securities and Exchange Commission (CySEC) published on Monday a Policy Statement on the fees payable and the information to be reported under the European Regulation on markets in crypto-assets known as MiCAR.

According to CySEC, MiCAR introduces a harmonised framework in relation to crypto-assets that are fungible and do not qualify as financial instruments or any other crypto-asset excluded from MiCAR’s scope. MiCAR applies to natural and legal persons and certain other undertakings that engage in the issuance, offer to the public and admission to trading of such crypto-assets or that provide services related to those crypto-assets in the EU.

The three categories of crypto-assets that fall within MiCAR’s scope are Asset-Referenced Tokens (ARTs), which are a regulatory category corresponding to the so-called ‘stablecoins’ and that are regulated under Title III of MiCAR, E-Money Tokens (EMTs) which are regulated under Title IV of MICAR and demonstrate similarities in terms of economic function and regulation, with electronic money.

Given the assimilation to electronic money, EMTs are excluded from CySEC’s supervisory mandate. The other category is crypto-assets other than ARTs and EMTs which are regulated under Title II of MiCAR, hence forming a residual category.

CySEC noted that ARTs and EMTs that qualify as ‘significant’, within the meaning of MiCAR, are subject to additional obligations, including supervision by the European Banking Authority (EBA).

The crypto-asset-related operations caught by MiCAR include initial offerings and admission of crypto-assets to trading, provision of services in relation to crypto-assets, the regulation of which is laid down in Title V of MiCAR, authorisation and ongoing obligations of issuers of ARTs and of EMTs, laid down in Title III and IV of MiCAR respectively, and prevention and prohibition of market abuse involving crypto-assets under Title VI of MiCAR.

The regulation includes a substantial number of Level 2 and Level 3 measures which are published upon official issuance on CySEC’s website, under the regulatory framework section. For the submission of applications, interested parties may refer to CySEC’s previous announcement.