Vienna

Following the March roundtable in London and the April roundtable in Berlin, the third MiCAR Roundtable of the series was held in Vienna on May 20th 2024. This event was organised in partnership of siedler legal, thinkBlocktank and Validvent in cooperation with the European Commission and sponsored by Crystal Intelligence, AML Incubator, and Bitpanda.

The Vienna roundtable commenced with a keynote from Joachim Schwerin, Principal Economist at the European Commission, and included expert contributions from Alexander Harutunia (AML Incubator) on token concentration and decentralisation; Hedi Navaza (Crystal Intelligence) on listing on non-EU exchanges in light of reverse solicitation; Oliver Völkel (SVLAW) on white paper exceptions; Philipp Bohrn (Bitpanda) on Austrian grandfathering issues; and Romena Urbonaite (Bitpanda) on market abuse monitoring.

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Decentralisation in the Context of MiCA

The discussion on decentralisation, highlighted the complexities surrounding the lack of a formal definition for "decentralisation" under MiCA, which could lead to varied interpretations and operational challenges within the crypto industry. The conversation introduced the concept of centralization vectors, focusing on smart contract access, Web2 interfaces, and platform dependence, to assess the degree of control within decentralised systems.

Reverse Solicitation Under MiCA

The discussion on reverse solicitation, emphased its critical role within the MiCA framework in regulating interactions between EU clients and third-country crypto-asset service providers. The roundtable highlighted the challenges of ensuring that reverse solicitation is strictly limited to services initiated by the client, as well as the complexities involved in token listings by EU-based issuers on third-country exchanges.

MiCA and the Requirement for Crypto-Asset Whitepapers

The discussion on the requirement for crypto-asset whitepapers, explored the obligations of offerors and CASPs under MiCA, particularly in scenarios where whitepapers are exempted. The roundtable raised concerns about the intersection of these requirements and the need for CASPs to provide clients with adequate risk information even when no whitepaper is available.

Grandfathering in Austria

The discussion on the complexities and ambiguities surrounding the application of grandfathering provisions for CASPs under the new MiCA framework in Austria focused on the unclear scope of these provisions, the translation of services from AMLD5 to MiCA, and the need for timely national legislative measures to avoid regulatory gaps.

Market Abuse Monitoring Requirements and Inside Information Disclosure

The discussion on market abuse monitoring requirements, focused on the challenges posed by MiCAR’s requirements, which are inspired by Regulation 596/2014 (MAR). The conversation covered the broad application of market abuse provisions, the definition of relevant market participants, and the implications for inside information disclosure in the context of DeFi.

Call to Action

Regulators should develop precise criteria outlining what constitutes full versus partial decentralisation, focusing on control and influence within the ecosystem. This includes clarifying definitions, standardising regulatory approaches, and engaging with technological developments to ensure that regulations evolve in step with advancements in decentralised technologies.

Call to Action

Regulators should provide specific and detailed guidelines to prevent the misuse of the reverse solicitation exemption and ensure fair competition. This includes defining non-solicitation criteria, enhancing the supervisory framework, and offering clear guidance on the obligations of EU issuers concerning token listings on third-country exchanges.

Call to Action

Regulators should establish clear guidelines for CASP compliance in situations where no whitepaper exists due to exemptions. This includes defining parameters for the use of third-party whitepapers, issuing directives on risk disclosure, and ensuring regulatory alignment across EU member states to prevent disparities in compliance and enforcement.

Call to Action

Regulators should provide detailed guidelines on the scope of grandfathering provisions, establish a simplified transitional procedure for CASPs, define criteria for crypto-asset listings, and implement provisional measures for stablecoins and ARTs to ensure continuous oversight and compliance until the full adoption of national laws.

Call to Action

Regulators should clarify the scope of market abuse requirements, define the scope of “admission to trading,” and establish monitoring and reporting protocols for Suspicious Transaction and Order Reports (STORS) to ensure effective enforcement and compliance within the crypto industry.