CIF entities can now offer MiCA Services
CySEC recently announced its readiness to accept of notifications from CIFs intending to provide crypto-asset services, in line with Article 60 of the Markets in Crypto-Assets Regulation (MiCAR). Leveraging its extensive experience, the SALVUS Licensing team stands ready to assist CIFs in navigating the regulatory landscape for offering crypto-asset services.
Crypto-Asset Services and Their Investment Service Equivalents
Under MiCAR, CIFs may offer crypto-asset services equivalent to their existing MiFID-authorized investment services, as per the below:
| Crypto-asset services | Investment Services |
|---|---|
| Execution of orders on behalf of clients | Execution of orders on behalf of clients |
| Reception and transmission of orders for crypto-assets on behalf of clients | Reception and transmission of orders in relation to one or more financial instruments |
| Exchange of crypto-assets for funds or for other crypto-assets | Dealing on own account |
| Providing advice on crypto-assets | Investment advice |
| Providing portfolio management on crypto-assets | Portfolio management |
| Placing of crypto-assets | Underwriting or placing of financial instruments on a firm commitment basis and placing of financial instruments without a firm commitment basis |
| Operation of a trading platform for crypto-assets | Operation of a multilateral trading platform |
| Providing custody and administration of crypto-assets on behalf of clients | Safekeeping and administration of financial instruments, including custodianship and related services |
Notification Requirements and Process
To offer crypto-asset services, CIFs must notify CySEC at least 40 working days prior to commencement. The notification must include:
- Policies, such as AML Manuals, Internal Operations Manual, Business Continuity Plans, and ICT Security Arrangements.
- Business and operational details, including custody, execution, and exchange policies.
- An Insurance Policy and supporting documents, ensuring readiness and compliance.
The notification process spans a maximum of 120 days, during which CySEC will evaluate submissions, request clarifications, and approve qualified applications.
How SALVUS Can Help
SALVUS offers end-to-end support for CIFs throughout the notification process, including:
- Preparing and submitting complete notification packages.
- Acting as the official promoter, handling all CySEC communications.
- Developing and tailoring required policies to align with regulatory standards.
Our deep expertise ensures a smooth application process, enabling CIFs to confidently expand into the crypto-asset space.
If you require more information or assistance regarding the application process and requirements, please contact our Crypto-Assets Licensing team at info@salvusfunds.com; We are here to support you and address any questions you may have.
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