ESMA statement on end of MiCAR transitional period and orderly wind down of activities

The European Securities and Markets Authority (ESMA) has issued a public statement clarifying its expectations ahead of the end of the transitional period on 1 July for authorisation under the Markets in Crypto-Assets Regulation (MiCAR). ESMA calls on crypto-asset service providers (CASPs) that are not MiCAR-authorised to cease operations and implement an orderly wind down of their EU activities while safeguarding client interests. ESMA expects unauthorised CASPs to:

• Immediately stop onboarding new EU clients, opening new client relationships or accounts, and carrying out marketing or solicitation activities.
• Limit the provision of services to those necessary to sell or transfer crypto-assets, reallocate assets, or close positions, and custody arrangements for a period strictly required to support an orderly exit.
• Communicate clearly, promptly and regularly with clients on measures taken to safeguard their assets, their wind-down plan, and the deadline for any automatic closure of residual positions, and applicable client protection measures.

CASPs are advised to continue to comply with applicable conduct and anti-money laundering/counter-terrorist financing requirements throughout the wind-down process. ESMA also reiterates that non-EU CASPs may not provide crypto-asset services to EU clients, including on a business-to-business basis, and reminds clients that MiCAR protections do not apply when dealing with unauthorised providers.

Clients are encouraged to verify whether their EU-provider is authorised in the ESMA register and, where this is not the case, transfer their crypto-assets to an authorised CASP or a self-hosted wallet. ESMA, together with other EU-authorities, will monitor compliance and may take supervisory action against unauthorised CASPs after the transitional period ends.

Return to main website.