Good practices preparation licence applications
We recommend that potential crypto-asset service providers (CASPs) prepare a comprehensive licence application and submit it in good time to avoid the risk of having to cease activities due to the lack of a required authorisation or notification. In order to help with the preparation of a high-quality application, we share the following good practices for licence applications.
1. Determine which MiCAR rules apply to your organisation (scoping), preferably on the basis of legal advice from a specialist law firm. For example, determine whether your services qualify as the operation of a trading platform and whether you provide advice on crypto-assets.
2. Acquire knowledge of MiCAR rules and determine to what extent your organisational structure and/or business operations need to be adjusted. For example, conduct a gap analysis on your current situation and a MiCAR-compliant situation and plan to implement the necessary changes in good time.
3. Obtain advice in preparation for your MiCAR application where necessary, while of course remaining fully responsible for and informed about the content of your licence application. Such advice may relate to the design and implementation of control measures, for example.
4. Contact the AFM in good time on matters with high impact and/or a long lead time by e-mailing crypto@afm.nl (even before starting the formal application). Such matters could include scoping, the set-up of the control structure or the design of asset segregation procedures.
5. Keep in mind that any questions from the AFM (and DNB) must be answered promptly and any changes must be implemented in your organisation. For example, you may be asked to explain certain matters in more detail in writing or during a supervisory interview or to improve your internal risk management framework and/or compliance function.
6. Make sure you submit a comprehensive licence application, explaining why you are compliant with MiCAR and stating clearly how your internal procedures meet the requirements. For example, provide a summary and clear references (including page numbers) to supporting documentation such as policies and procedures, and make sure all the Fit & Proper testing forms have been completed correctly for all personnel concerned.