MiCa regulation 2023: Stablecoins and e-money tokens issuance

The EU’s Markets in Crypto-Assets (MiCA) regulation provides long-needed legal clarity for the the crypto market. Among other things, MiCA provides a comprehensive framework for the operation, structure and governance of crypto-asset issuers and service providers by establishing a uniform EU regulatory regime that will supersede national laws. The Ecovis experts in Lithuania explain the details of MiCa regulation 2023.

As the complex landscape of crypto regulation continues to evolve, it is becoming increasingly urgent for credit institutions and electronic money institutions (EMI) to seek expert guidance. This is especially true during the transitional phase of MiCA’s implementation, as regulated entities will be the first to be scrutinised under the regulation.

To ensure a smooth transition and compliance with the new standards, it is essential that all participants in the crypto market seek professional counsel. With less than a year left for stablecoin issuers to prepare for MiCA, the following is a summary of the essential preparation required.

Evaluation of the company’s own technical capabilities

• Individual technological capabilities for stablecoin issuance
• Procurement of an existing issuance infrastructure
• Acquisition of CASPs (Crypto Asset Service Providers) for the creation of the infrastructure

We support you in implementing the MiCA regulation correctly and on time.

Inga Karulaityte, Partner of ECOVIS ProventusLaw, Vilnius, Lithuania

Preparation of the white paper

• Procurement of the appropriate underlying technology and infrastructure
• Evaluation of corporate and governance arrangements
• Establish adequate tokenomics
• Evaluation of conflicts of interes
• Evaluation and establishment of cooperations with third parties
• Strategy for offering the e-money tokens (EMT) to the public
• Consideration of possible trading platforms for the distribution of EMTs

Evaluation of risks and liability for:

• Inadequate technical standards of the underlying technology
• Misleading white paper
• Inconsistent marketing materials
• Deficits in the safeguarding arrangements for clients’ funds

Overall, the implementation of MiCA marks a significant milestone in the legal clarity of the crypto market and provides a novel legal framework applicable to current crypto market actors and potential participants. To ensure a smooth transition, companies and especially regulated entities are encouraged to use the remaining year of the transitional period to establish a robust infrastructure and ensure that their activities are compliant.

For further information please contact:

Inga Karulaityte, Partner of ECOVIS ProventusLaw, Vilnius, Lithuania
Email: inga.karulaityte@proventuslaw.lt