MICA Legal

Main directions of regulation

MiCA attempts to categorize individual crypto-assets at the EU level. Based on this, 3 main categories of cryptoassets will be created:

1. asset-based tokens,
2. electronic money tokens and
3. category of usage tokens.

One of the main goals of MICA is to make the services provided with respect to crypto-assets subject to a license. The MiCA itemizes the cryptoasset services – including, for example, the operation of the cryptoasset trading platform, the conversion of cryptoassets into fiat currency, which is considered legal tender, and advice on cryptoassets – which, from the entry into force of the regulation, will only be able to be provided with a license and within the appropriate institutional framework.

The license for the provision of activities will be issued by the competent supervisory authorities of the Member States. The license is valid for the entire territory of the European Union, so licensed crypto asset providers will be able to provide the services specified in the license in a cross-border manner, throughout the territory of the Union, without having to be physically present in the territory of the host state.

Within the European Union (e.g. Hungary), companies based in EU member states planning to provide crypto asset services must be prepared for the licensing procedure before the competent supervisory authority (e.g. Magyar Nemzeti Bank), which will be similarly complex and strict as any other money market or capital market authorization procedure.

Within this framework, crypto asset providers will have to submit a number of documents certifying the compliance of their activities to the licensing authority, which will examine within three months from the receipt of the complete application whether the applicant crypto asset provider meets the requirements set out in the MiCA and will decide accordingly granting or refusing permission.