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What does the MiCA regulation say about digital assets?

The MiCA regulation, designed by the European Union, aims to establish a regulatory framework for digital assets: authorisation, investor protection, financial stability, fraud prevention…

Approval and standards for companies

Crypto exchangeExchange platform for crypto assets (Binance, Kraken…) platforms, digital walletPrice variation of an asset on a given period. providers and other digital asset-related services will need to be licensed to operate. This means meeting high standards of corporate governance, risk management and protection of customer funds. For example, an exchange platform will need to demonstrate its ability to secure user assets against cyber-attacks and losses.

Investor protection

Issuers of digital assets and service providers have an obligation to provide clear and comprehensive information about their products. This includes the associated risks, costs and charges, similar to the prospectuses required for traditional financial instruments. The aim is to enable investors to make informed decisions.

Financial stability

The regulation seeks to prevent cryptocurrency-related activities from destabilizing the financial system. Measures such as limits or caps on financial institutions’ exposure to cryptocurrencies can be put in place to prevent systemic risks. The aim is to ensure that financial institutions remain solid and able to operate, even in the event of major fluctuations in cryptocurrency prices.

Fraud and money laundering prevention

MiCA strengthens existing rules to prevent the use of cryptocurrencies for illicit purposes. Service providers will have to implement know-your-customer and transaction monitoring procedures to detect and report suspicious activity.

Promoting innovation

As well as introducing security rules, MiCA aims to create a regulatory environment that fosters technological innovation. This could include support for blockchainA blockchain is a type of distributed ledger technology. It is a huge database formed by blocks,cryptographically linked to each other, containing information such as transactions. These blocks are addedfollowing projects that improve the efficiency of financial services or contribute to social and environmental goals.

Cryptocurrencies or digital currencies are terms commonly used in the crypto ecosystem. However, the terminology favored by regulators (ACPR and AMF) is crypto-assets or digital assets. This distinction arises because, although often referred to as cryptocurrencies, these assets do not qualify as currencies in the legal sense. They are virtual resources based on blockchain technology, whose value is determined solely by supply and demand.

None of the information contained in this FAQ constitutes investment advice, tax advice, legal advice, or any other type of advice, nor does it serve as an invitation to engage in any form of financial transaction.

Investing in digital assets carries risks and may not be suitable for all investors. It is the responsibility of investors to educate themselves about the risks associated with different digital assets. In particular, it is noted that digital assets can exhibit significant volatilityPrice variation of an asset on a given period., and investments in digital assets involve a risk of capital loss. Accordingly, it is important to remember that the past performance of digital assets, as might be indicated on Banque Delubac & Cie’s website or in documents provided to investors, is not indicative of future performance. Investors should familiarize themselves with the technologies underlying each digital asset and their associated risks, including vulnerabilities, defects, hacks, errors, protocol failures, or attacks on the protocol. Banque Delubac & Cie cannot be held liable for any misunderstanding of the risks associated with digital assets or for any losses investors may incur due to errors in wallet addresses attributable to the investor.

Most frequently asked questions

Are cryptocurrencies taxable?

This question is attracting growing interest as more and more people get involved in the world of crypto-currencies, known as crypto-assets or digital assets, as the ACPR officially calls them. Historically, there have been debates and controversies about how to treat cryptocurrencies fiscally in France. Initially, cryptocurrencies were considered virtual assets [...]

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What is the difference between PSAN approval and PSAN registration?

The difference between PSAN approval and registration lies mainly in the level of control and regulatory requirements imposed by the French authorities. PSAN registration is mandatory for all digital asset service providers in France. This procedure ensures that the service provider complies with anti-money laundering and anti-terrorist financing standards, in accordance [...]

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What does PSAN stand for?

PSAN, or Prestataire de Services sur Actifs Numériques, is a regulatory term specifically used in the French and European context to designate entities that offer services related to digital assets or cryptocurrencies. This designation encompasses a variety of services, from the custody of digital assets on behalf of third parties to [...]

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What does MiCA mean?

MiCA, which stands for Markets in Crypto-Assets, is a European Union regulation aimed at creating a harmonised regulatory framework for digital assets within the EU. The aim of MiCA is to protect investors and preserve financial stability while fostering innovation and competition in the cryptocurrency sector. MiCA regulation covers various aspects [...]

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