MiCA Regulation

Complete Guide to MiCA Regulation in the Czech Republic

The European MiCA Regulation (Markets in Crypto-Assets Regulation) introduces the first comprehensive set of rules for conducting business with cryptocurrencies within the EU. This guide explains who it applies to, what it entails, and how to prepare for it in the Czech context.

What is MiCA?

MiCA is an EU regulation that:

• Introduces rules for the issuance, offering, and trading of crypto-assets
• Establishes a unified regulatory framework across the entire EU
• Strengthens investor protection, transparency, and oversight

MiCA primarily applies to companies that:

• Issue tokens or stablecoins
• Provide services related to crypto-assets

Who Does MiCA Apply To?

• Crypto-Asset Service Providers (CASPs)
  • Cryptocurrency exchanges
  • Wallet providers and custodians
  • Advisors and brokers
• Token Issuers
  • Issuers of stablecoins (e-money and asset-referenced tokens)
  • Projects launching utility tokens
• Investors and Fintech Companies
  • Those trading or investing in crypto-assets

Token Types Under MiCA

• ART – Asset-Referenced Tokens
  Tokens backed by a basket of assets (e.g. currencies, commodities)
• EMT – E-Money Tokens
  Tokens pegged 1:1 to a single currency (e.g. stablecoins backed by the euro)
• Other Crypto-Assets
  Mainly utility tokens used to access a service

Note: MiCA does not apply to NFTs, unless they exhibit characteristics of a tradable asset or financial instrument — in that case, they may fall under MiFID II regulation.

Obligations Under MiCA

MiCA introduces the following obligations for covered entities:

• Obtain authorization from the Czech National Bank (ČNB) or another supervisory authority in the EU
• Provide transparent information to clients (e.g. prospectuses, whitepapers)
• Meet capital and insurance requirements
• Implement and document AML/KYC procedures
• Ensure risk management, incident reporting, and internal control systems are in place

MiCA Timeline

• June 2024: Rules take effect for stablecoins (ARTs/EMTs)
• December 2024: Rules take effect for CASPs (exchanges, wallets, advisory services)
• Transition period for existing companies: Until June 2026, if registered by June 30, 2024

Process in the Czech Republic

In the Czech Republic, the Czech National Bank (ČNB) will act as the main supervisory authority. Companies will be required to:

1. Apply for a CASP (Crypto-Asset Service Provider) license
2. Submit complete documentation, including:
   • Compliance policies (AML/KYC, security, risk management)
   • Information about company leadership and capital adequacy
   • Business model plan and asset management approach
3. Maintain ongoing supervision, including incident reporting and updates on significant changes

MiCA vs. Existing Regulation

Prohibited Practices Under MiCA

• Market abuse (price manipulation, insider trading)
• False or misleading information in whitepapers/ tokenomics
• Hidden fees and unclear revenue models

MiCA also requires:

• A system for incident reporting
• Protection against cyber threats (in cooperation with DORA regulation)

What to Prepare For

• Conduct a compliance audit of existing processes
• Create or update AML/KYC policies
• Ensure qualified management and governance
• Set up internal systems for:
  • Transaction record-keeping
  • Client identification (KYC)
  • Monitoring suspicious activities
  • Reporting to regulators

How Parker & Hill Can Help

• Compliance consulting according to MiCA
• Preparation of documentation for the Czech National Bank (ČNB)
• Assistance with license application
• Setting up policies and technical tools (AML, reporting, audit trails)
• Support with selecting banks and opening accounts in the EU

With our help, you’ll navigate MiCA smoothly—without unnecessary stress, penalties, or operational risks.