MiCAR

Category	Details Under MiCAR
Asset Issuance Rules	MiCAR mandates a comprehensive set of rules for all crypto-assets, including asset-backed, debt-backed, utility, and payment tokens. Issuers must publish a white paper detailing all pertinent information, compliant with MiCAR's disclosure standards. For asset-backed and e-money tokens, additional authorizations from competent authorities are required prior to issuance. The white paper must be approved and filed with the relevant authority and updated regularly to reflect any material changes.
Resale of Digital Assets	MiCAR allows for the resale of digital assets under the conditions specified in the originally approved white paper. The assets must continue to comply with the initial disclosures. Resale must occur on authorized platforms that adhere to MiCAR's standards for transparency and investor protection.
Trading Restrictions	Trading of all crypto-assets must occur on platforms that are authorized and comply with MiCAR. This includes transparency requirements, prevention of market abuse, and ensuring investor protections. Specific provisions are also outlined for algorithmic trading associated with digital assets.
Custody Requirements	Custody service providers for digital assets must meet stringent requirements concerning the safeguarding of client assets, operational resilience, and the handling of conflicts of interest. These requirements aim to protect asset holders and ensure the integrity of custodial services.
Dispute Resolution	MiCAR requires issuers and service providers to have clear, fair, and transparent procedures for dispute resolution. Complaints must be handled promptly and consistently, with issuers required to publish their complaint handling procedures. Dispute resolution mechanisms must be accessible and free of charge to asset holders.
Promotion of Digital Assets	The promotion and advertising of digital assets are tightly regulated under MiCAR. All promotional materials must be clear, fair, and not misleading, and must align with information disclosed in the white paper. There are strict guidelines on what can be communicated in promotional materials to avoid misleading potential investors.
Filing for Issuance	Issuers of digital assets must file a detailed white paper with the competent authority, including information on the issuer, the project, associated risks, and the terms of the asset offer. This white paper must be approved before the issuance can commence. Post-approval, issuers are required to regularly update the white paper to reflect any significant changes or developments related to the project or the assets.
Important Takeaways for VASPs	1. Must register with and be authorized by competent authorities. 2. Adherence to stringent AML/CFT requirements. 3. Implementation of robust security and operational standards. 4. Must report suspicious activities and transactions. 5. Regular audits and compliance checks are mandatory to ensure ongoing adherence to regulatory standards.
Important Takeaways for Issuers	1. Compliance with comprehensive disclosure and reporting requirements as outlined in the white paper. 2. Adherence to capital and operational requirements specified under MiCAR. 3. Regular updates and amendments to the white paper to reflect changes in the project or market conditions. 4. Implementation of governance standards to ensure fair treatment of investors. 5. For asset-backed and e-money tokens, maintaining adequate reserves as required by MiCAR and undergoing regular audits to verify compliance.