Crypto organizations can only operate legally in Europe if they obtain permission. The Cryptocurrency Markets Regulation (MiCA) will be a new legislative act for EU countries in activities with virtual assets. This innovation will provide greater transparency and security for companies. The convenience lies in the fact that they have created uniform requirements for getting MiCa license throughout the European Union.
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The principle of regulation of crypto markets MiCA
Control of virtual asset markets aims to create a unified legislative framework for transparent regulation of crypto companies. Naturally, this regulation will be based on all European countries’ basic principles and requirements but with amendments to increase the efficiency of control over crypto activities.
Let us list the main objectives of the regulations:
- replace some requirements of European countries and create a standard regulatory structure;
- develop the most clear requirements for companies providing services and those involved in issuing tokens;
- more specific regulation regarding cryptocurrency activities, considering current financial regulations.
Thus, a single regulatory act will accumulate more apparent cryptocurrency market regulation.
Tips for companies to get permit
Many organizations will strive to undergo MiCA licensing, but to successfully obtain permission, we will give five essential tips on minimizing the permitting process’s problems. If at least one of the below-mentioned requirements is met, approval for the organization’s crypto activities will be allowed.
Office
An important point is an office’s presence on a European state’s territory. In addition, prepare documentary evidence of this fact. It could be a lease or purchase/sale agreement (if you decide to purchase an office or building for your company).
Firm management
There must be at least one of the managers who is a resident of a European country. All directors must have a financial background and experience in the cryptocurrency markets. In addition, select directors only with a clean reputation (no criminal records or debts). Relevant certificates must confirm it.
Implementation of AML and KYC policies and security
A critical requirement for licensing is the implementation of AML and KYC policies. A license will only be issued if your company’s activity program includes this section, particularly if you employ the best AML investigation software. European countries are very strict about these aspects. Also, the organization must have authorized persons responsible for compliance with these rules within the company. Providing security to maintain confidential information and cryptocurrency assets’ safety is also essential.
Honesty in business is the key to success
Suppose the commission, at the end of the inspection, is convinced of the transparency and honesty of your business. In that case, this will be a strong plus for obtaining permission for cryptocurrency activities.
Anticipate risks
Since the European Union strictly monitors the financial sector’s stability, each company must provide a system for identifying risks and effectively eliminating them before obtaining a license. It is due not only to financial transactions but also to possible cyber attacks. Therefore, you need software that protects you from external influences on the system. For example, provide multi-level entry identification and system alerts at the slightest attempt at unauthorized entry.
The listed tips apply directly to new companies, and it will be enough for existing companies to adapt to new conditions within one and a half years from the moment the MiCA regulations come into force.
What cryptocurrency activities will MiCA apply to?
This legislative act will apply to companies whose activities include the following functions:
- provision of electronic storage and management of clients’ virtual assets;
- exchange transactions: one type of electronic coin is exchanged for another, or electronic currencies are exchanged for fiat funds;
- provision of crypto trading platforms for transactions;
- consulting clients on cryptocurrency;
- issue of digital coins.
As you can see, a wide range of crypto activities is provided for licensed companies from MiCA. It is worth noting that MiCA provides 3 types of virtual assets:
- tokens tied to assets;
- digital money tokens;
- tokens not related to the two previous types, including service ones.
Therefore, if a company issues one of the listed types of tokens, then licensing is required. By taking into account the advice when licensing MiCA, the company will be able to avoid problems and possible refusal to issue permission for cryptocurrency activities.
FAQ:
1. What is a mica mining permit?
A mica mining permit authorizes the legal extraction and sale of mica from deposits on private or public lands.
2. Which government agency issues mica permits?
In the US, mica mining permits are issued by state agencies like the Department of Environmental Protection or natural resources.
3. What requirements are needed for a permit?
Applicants must provide operating plans, reclamation bonds, proof of insurance, and pay permit/application fees. Site visits and environmental reviews are also conducted.
4. How long are permits valid for?
Mica mining permits typically last 1-5 years and must be renewed periodically with permit fees.
5. Can individuals obtain permits?
While larger mica mining operations require additional licensing, individuals can often obtain smaller-scale permits for non-commercial hobby collecting.
