Answer ESMA_QA_2068

ESMA_QA_2068

Subject Matter: Grandfathering clause and applicable AML laws

Can entities providing crypto asset services registered under national arrangements that transpose the AML/CFT framework into national law benefit from the grandfathering clause set out under Article 143(3) MiCA?

20-06-2024

Answer provided by the European Commission

Yes, entities that provided crypto asset services in accordance with applicable law before 30 December 2024 may benefit from the grandfathering clause to continue providing those services in the Member State in which they are registered until they are granted or refused authorisation pursuant to Article 63 MiCA.

Article 143(3) MiCA refers to crypto-asset service providers that provided their services “in accordance with applicable law” before 30 December 2024. Therefore, any national arrangements put in place for the provision of crypto-asset services before entry into application of MiCA, should be 7 covered.

The entities authorised under national law before 30 December 2024 do not benefit from a passporting regime under MiCA but can provide crypto-asset services within the jurisdiction they are registered in.

Disclaimer:

The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.

Status: Answer Published