LONDON

On March 25th, 2024, the inaugural MiCAR Roundtable of the series was held in London at the Austrian Trade Commission. Organized in partnership with thinkBLOCKtank, Validvent, ADVANTAGE AUSTRIA UK, the Austrian Professional Association for Financial Service Providers, and the Vienna Business Agency, and in collaboration with APCO, INATBA, and EUBOF, the event brought together a diverse group of experts to discuss key challenges in the application of MiCAR.

The London roundtable experts included presentations from Elise Soucie on Sustainability Requirements, Dr. Max Bernt on the complexities of EMTs and E-Money, and Joey Garcia on the challenges related to reverse solicitation in the context of application storefronts.

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Sustainability Requirements

The discussion on sustainability requirements, centered on integrating MiCA’s sustainability reporting with existing frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR). Participants debated the importance of including both positive and negative sustainability metrics to provide a comprehensive view of the digital asset ecosystem's impact on climate change. Concerns were raised about potential inconsistencies in the application of these metrics across EU member states, which could lead to fragmentation and misrepresentation of the industry.

EMTs and E-Money: Regulatory Treatment

The discussion on the regulatory treatment of Electronic Money Tokens (EMTs) under MiCA, explored the complexities and challenges in aligning these tokens with current EU directives such as the Electronic Money Directive 2 (EMD II) and the forthcoming Payment Services Directive 3 (PSD3). The conversation highlighted the need for clear regulatory criteria for EMTs and the importance of regulatory flexibility to accommodate the unique characteristics of EMTs while ensuring stability and innovation within the digital financial market.

Call to Action

Regulators should incorporate positive sustainability metrics into MiCA’s reporting framework, aligning with existing EU sustainability standards like the CSRD and SFDR, to ensure the digital asset industry’s contributions are accurately and fairly represented.

Call to Action

Regulators should clarify and adapt the regulatory frameworks for EMTs under PSD3 by defining specific criteria that ensure these tokens are issued by entities compliant with MiCA’s stringent operational and collateralization standards, supporting innovation while maintaining financial stability.

Solicitation

The session on the solicitation of business addressed the complexities of licensing triggers and the application of reverse solicitation rules within the digital marketplace. The discussion emphasized the challenges posed by updated guidelines from platforms like Apple and Google, which necessitate strict jurisdictional assessments based on the principle of reverse solicitation. Participants debated how these updates would affect international crypto service providers and the need for clear guidelines on whether app store interactions could be construed as solicitation under MiCA.

Call to Action

Regulators should engage with major application storefronts to standardize the interpretation of solicitation within digital contexts under MiCA. Additionally, the development of a clear framework to differentiate between solicitation tests under MiFID II and MiCA is necessary to harmonize the regulatory approach across different financial services within the EU.