MiCAR Vienna Roundtable:
The Vienna MiCAR Roundtable, held on May 20, 2024, focused on critical aspects of the EU’s evolving crypto regulations under MiCAR, featuring contributions from experts in blockchain, compliance, and law.
Decentralisation in MiCAR
Discussions led by Alexander Harutunia explored MiCAR’s treatment of decentralised systems, highlighting ambiguities in defining decentralisation. Participants proposed evaluating decentralisation through vectors like smart contract control, Web2 interfaces, and platform dependence. Recommendations included precise criteria to distinguish full and partial decentralisation, addressing risks while supporting innovation.
Reverse Solicitation
Hedi Navaza emphasized the need for clear ESMA guidelines to regulate interactions between EU clients and third-country service providers. The discussions underscored complexities in token listings on non-EU exchanges, liability issues for EU issuers, and the importance of robust supervision to prevent indirect solicitation.
Crypto-Asset Whitepapers
Oliver Völkel led a conversation on the regulatory obligations surrounding whitepapers. MiCAR’s exemptions for certain offerings pose challenges for CASPs, which are required to inform clients of risks. The roundtable called for guidance on acceptable alternatives, including third-party whitepapers and risk disclosures.
Austrian Grandfathering Rules
Philipp Bohrn addressed Austria’s national laws transposing MiCAR, focusing on ambiguities in grandfathering provisions. Key issues included the translation of AMLD5 services into MiCAR regulations, transitional procedures for unregulated services, and criteria for crypto-asset listings. Participants stressed the need for regulatory clarity and collaboration to avoid disruptions.
Market Abuse Monitoring
Romena Urbonaite discussed MiCAR’s broad market abuse provisions, which extend to validators and DeFi platforms. The lack of clarity on terms like “admission to trading” and inside information disclosure requirements were highlighted. Recommendations included clear definitions, enhanced monitoring tools, and systemic enforcement by regulators.
The Vienna Roundtable emphasized collaboration between regulators and the crypto industry to refine MiCAR’s application. Clear guidelines, precise definitions, and proactive engagement are vital for fostering innovation while ensuring market integrity and consumer protection. This balanced approach will strengthen the EU’s position as a global leader in crypto regulation.
