MICA to RegRally: The Newest Crypto Guide, March 2025

ECOVIS ProventusLaw invites you to its monthly crypto newsletter – a periodic update providing a summary of the latest regulatory and industry-wide market developments with respect to crypto-assets

Bank of Lithuania Highlights MiCA Transition Period Restrictions

The MiCA transition period imposes strict limitations on cryptocurrency service providers, requiring compliance with legal requirements.

Limited Operations: Providers can only operate under the national transitional regime in their registered country. Cross-border services require a MiCA license—registration in one EU state does not grant EU-wide rights.

Regulatory Deadline: ARTs and EMTs must comply with MiCA from 30 June 2024. ESMA reaffirmed on 17 January 2025 that non-compliant assets must not be offered, and providers must inform investors.

Lithuania’s Approach: While MiCA took effect on 30 December 2024, Lithuania allows temporary operations under current rules. However, to continue business, all providers must obtain a MiCA-compliant license by 1 June 2025.

If you choose another EU jurisdiction to operate your CASP-licensed company under the new MICA Regulation, you must properly liquidate the Lithuanian VASP company.

All Lithuanian-registered VASP (Crypto) companies are allowed to operate until June 1, 2025. To continue operating after June 1, every company must get a new MICA license.

The company liquidation process may take 6 months. To start it, a company liquidator (qualified individual) needs to be appointed.

A company liquidator from a reputable law firm will represent the company to the Financial Crime Investigation Service (FNTT), supervising all Lithuanian registered VASPs and answering all regulatory questions. This will allow you to avoid possible regulatory sanctions and bad records in the Lithuanian Company Registrar.

ECOVIS will provide you with the experienced liquidator able:

organise proper company liquidation process
prepare 2024 annual financial statements
review all company documentation
settle all company debts
terminate all employment contracts
represent the company during all liquidation process
complete the liquidation process and reregister the company from the registrar

Please get in touch with ECOVIS ProventusLaw for VASP company liquidation services [email protected]

EBA Supports Strengthened Conflict-of-Interest Rules for ART Issuers Under MiCAR

The European Banking Authority (EBA) has endorsed the European Commission’s proposed amendments to the draft Regulatory Technical Standards (RTS) on conflicts of interest for issuers of Asset-Referenced Tokens (ARTs) under MiCAR. The revised standards aim to enhance transparency, ensure proportionality, and harmonise regulatory requirements across the EU. Issuers of ARTs will be required to establish and enforce conflict-management policies, fostering trust in the crypto-asset market. These standards are expected to be officially adopted, reinforcing investor protection and market integrity.

ESMA Consults on Guidelines for Competence of Crypto-Asset Advisors Under MiCA

On 17 February 2025, the European Securities and Markets Authority (ESMA) published a consultation paper on draft guidelines for assessing the knowledge and competence of individuals advising on crypto-assets under MiCA. Aligned with MiFID II principles, the guidelines ensure advisors understand distributed ledger technology and crypto-asset market risks. Stakeholders can submit feedback until 22 April 2025, with final guidelines expected in Q3 2025.

Recommendations:

Implement targeted training on distributed ledger technology, regulatory requirements, and crypto-asset risks to ensure compliance.
Establish mechanisms to assess and certify staff knowledge in line with the forthcoming guidelines.
Provide feedback to ESMA before 22 April 2025 to contribute insights and prepare for regulatory changes.
Stay updated on the final guidelines in Q3 2025 and adjust internal policies accordingly.

ESMA Issues Supervisory Briefing to Harmonize CASP Authorization Under MiCA

The European Securities and Markets Authority (ESMA) has released a supervisory briefing to align regulatory practices across EU member states. Developed with National Competent Authorities (NCAs), it aims to prevent regulatory arbitrage and establish clear expectations for Crypto-Asset Service Providers (CASPs) seeking authorisation.

The briefing clarifies governance requirements, in-country personnel obligations, outsourcing limits, and management’s technical competence. Translating MiCA provisions into practical controls enhances supervision and regulatory clarity. NCAs are expected to apply these principles during authorisation and ongoing supervision.

VASP Sector Data Submission Deadline for AML/CFT Compliance Set for March 31, 2025

Companies in the Virtual Asset Service Provider (VASP) sector must now submit necessary information to the Financial Crimes Investigation Service (FCIS) as part of their Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) obligations. This includes depository virtual currency wallet operators and virtual currency exchange operators.

To strengthen supervision, the FCIS has used the STRIX tool since late 2023 to assess money laundering and terrorist financing risks. The submission form for the required data is now active, with a deadline of March 31, 2025.

Action Points for VASPs:

Submit required AML/CFT data to FCIS by the deadline using the designated submission form.
Leverage insights from the STRIX tool to evaluate and improve internal AML/CFT measures in line with regulatory expectations.

EBA Endorses Amendments to MiCAR RTS on ART Authorisation Applications with Key Recommendations

The European Banking Authority (EBA) has issued its opinion on the European Commission’s amendments to the final draft Regulatory Technical Standards (RTS) on the information required for applications to authorise and trade ARTs under MiCAR. While the EBA accepts the amendments, it emphasizes that changes should be limited to exceptional circumstances and recommends further revisions to enhance supervisory oversight.

Key updates include adjustments to the programme of operations, internal governance arrangements, and proprietary DLT audit requirements. The EBA welcomes the clarification on market abuse and whistleblower policies but urges their inclusion for better governance. It also supports replacing the independent third-party audit for DLT with a security report but suggests reconsideration to ensure impartial risk assessment. The EBA calls for broader criteria in assessing management body members’ reputations to align with broader financial sector standards.

Recommendations for the Future:

Consider revising Article 18(5) MiCAR for a more comprehensive assessment of ART issuers’ management bodies.
Reevaluate the use of third-party audits for DLT to ensure impartial risk evaluation.
Expand criteria for assessing the good repute of management body members for consistency across the sector.

ESMA Finalizes Guidelines on Reverse Solicitation Under MiCA Regulation

The European Securities and Markets Authority (ESMA) has issued final guidelines on Reverse Solicitation under the MiCA Regulation, placing stricter controls on third-country firms targeting EU clients without proper authorisation. These guidelines define solicitation broadly, including promotion, advertisement, or offering of crypto-asset services or activities to EU clients through various means, such as invitations to events.

Key highlights include:

General promotions or marketing with broad reach may qualify as solicitation.
Third-country firms must avoid soliciting EU clients by refraining from accepting new clients and implementing geo-blocking.
Influencing clients, whether for monetary or non-monetary benefits, is prohibited.
CASPs authorised under MiCA must not redirect clients to third-country services, even within the same corporate group.
Providing additional crypto-assets or services beyond the initial transaction request is also restricted.