To obtain authorization as a Crypto Asset Service Provider (CASP) under the proposed Markets in Crypto-Assets (MiCA) regulation in the European Union, several key documents must be provided to the regulatory authority. These documents play a crucial role in demonstrating the credibility, compliance, and operational readiness of the CASP.
ESMA is still developing draft regulatory technical standards (RTS) to further specify the information to be provided to regulatory authority. Draft RTS shall be submitted to the Commission by 30 June 2024.
However, MiCA already provides a list of documents that will be required during the assessment of the application. Here’s a breakdown of the essential documents required:
Application Form: Complete and submit the official application form provided by the regulatory authority, furnishing detailed information about the entity, ownership structure, management team, and intended activities.
Business Plan: Develop a comprehensive business plan (a programme of operations) outlining the CASP’s proposed activities, target markets, marketing strategies, and financial projections, the type of crypto asset to which the crypto asset service relates. This document showcases the viability and strategic vision of the CASP.
Prudential safeguards: regulatory authority shall require a proof that the applicant CASP meets the requirements for prudential safeguards.
Organizational Documents: Provide copies of organizational documents such as articles of association and corporate governance policies to establish the legal framework and structure of the CASP.
Ownership and Control Information: Disclose details about the ownership structure, including shareholders, directors, and beneficial owners, along with any significant changes in ownership or control.
Compliance Policies and Procedures: Provide the CASP’s compliance policies and procedures, including internal control, anti-money laundering (AML) and know-your-customer (KYC) measures, and business continuity plan.
ICT systems: Provide technical documentation of the ICT systems and security arrangements, and a description thereof in non-technical language.
Background Checks: Conduct background checks and due diligence on directors, officers, and key personnel to meet fit and proper requirements for authorization, ensuring integrity and credibility.
Segregation crypto-assets and funds: Provide a description of the procedure for the segregation of clients’ crypto assets and funds.
Complaints handling: Provide a description of the applicant crypto asset service provider’s complaints-handling procedure.
Insurance Coverage: Present proof of insurance coverage, such as professional indemnity insurance, to mitigate potential liabilities arising from the CASP’s operations, ensuring risk mitigation and financial protection.
Additional Supporting Documents: Furnish any supplementary documents or information requested by the regulatory authority to facilitate the assessment and approval of the CASP’s authorization application.
It’s important to note that the specific documentation requirements for CASP authorization under MiCA may be subject to change and may vary depending on the final regulatory framework in Lithuania which is still in preparation stage.