Entities who have not applied for, or whose application for authorisation as CASPs has been refused by the end of the transition period

ESMA Q&A 2221 on Entities who have not applied for, or whose application for authorisation as CASPs has been refused by the end of the transition period.

Authority	ESMA
Q&A ID	ESMA_QA_2221
Status	Answer Published
Published	4 July 2024
Legal basis	None mapped
Source	ESMA Q&A

Question

What happens to an entity providing crypto-asset services in accordance with applicable law before 30 December 2024 that has not applied for authorisation as a CASP, or whose application for authorisation as a CASP has been refused by the end of the transition period?

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Answer

Where an entity providing crypto-asset services in accordance with applicable law before 30 December 2024 has not been authorised as a CASP by the end of the transition period applicable in the relevant Member State, it must cease providing crypto-asset services. Where such entities do not seek a MiCA authorisation, they should consider at an early stage how they will wind down their operations in a manner that avoids negative impact on their clients in accordance, if relevant, with applicable laws.

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Source: ESMA original document