The Zug MiCAR Roundtable, hosted on October 2, 2024, at CV Labs, brought together regulators, legal experts, and industry leaders to address the EU’s evolving Markets in Crypto-Assets Regulation (MiCAR). Discussions focused on reverse solicitation, crypto-asset custody, and compliance complexities.
Reverse Solicitation in Group Contexts
Peter Lohmann emphasized challenges for third-country firms operating alongside MiCAR-licensed EU subsidiaries. Marketing activities by subsidiaries risk being interpreted as indirect solicitation by parent companies, potentially violating MiCAR’s strict requirements. Solutions included distinct service separations, staff training, and detailed documentation to ensure compliance while preserving brand integrity.
Handling Dual Regulations for Crypto Issuers
Dr. Reto Luthiger addressed the dual compliance challenge for third-country crypto projects that provide services and issue assets under MiCAR. Participants recommended separating service promotion from asset issuance via distinct websites, focused social media campaigns, and disclaimers to avoid conflicts with reverse solicitation rules. Clear differentiation of service-connected tokens from independent assets was deemed essential for compliance.
Cross-Border Crypto Custody
Tina Rebecca Balzli explored whether third-country custody providers can support EU-based CASPs. MiCAR requires EU CASPs to collaborate with MiCAR-licensed entities for custody services, limiting outsourcing to non-EU/EEA providers. Participants suggested interpreting “custody” to exclude infrastructure providers without access to private keys, allowing third-country firms to offer support under specific conditions. Bilateral treaties between third countries and EU member states were recommended to facilitate cooperation and reduce regulatory barriers.
Conclusion:
The Zug MiCAR Roundtable underscored the need for balanced regulatory approaches to support innovation while ensuring compliance. Recommendations included nuanced interpretations of reverse solicitation, risk-based custody definitions, and collaborative frameworks between EU and third-country entities. These measures aim to create a more integrated and competitive crypto market in the EU, aligned with MiCAR’s objectives of fostering innovation and protecting consumers.
