MiCA under the spotlight: Exclusive interview with Muinmos’ CEO

Muinmos, founded in 2012, specializes in regulatory technology, offering a platform that automates the entire client onboarding process – with options for clients to access individual modules. This includes AI-powered client categorization, automated KYC/KYB/AML checks, client risk assessments, and ongoing monitoring to keep up with regulations and client changes.

Muinmos’ technology enables financial institutions to onboard clients, corporate or individual, in under three minutes, offering both SaaS and customizable white-labeled solutions for rapid integration. This positions Muinmos as a pivotal player in preparing for the upcoming MiCA regulation by providing financial institutions with advanced compliance capabilities​​.

What is Markets in Crypto-Assets (MiCA)

The Markets in Crypto-Assets (MiCA) regulation is a comprehensive legal framework introduced by the European Union to regulate the crypto asset market within its member states. Coming into effect by the end of 2024, MiCA aims to provide legal clarity and certainty for crypto-asset issuers and service providers, fostering innovation while ensuring financial stability and protecting investors from risks. It will replace the various national regulations within the EU with a unified and comprehensive framework, setting clear rules for crypto-asset service providers and token issuers, and covering a wide range of crypto assets, including asset-referenced tokens, e-money tokens, and other tokens not classified under these categories​​​​​​.

The regulation will apply from 30 December 2024, with specific rules on asset-referenced tokens and e-money tokens coming into effect earlier, from 30 June 2024. MiCA classifies crypto-assets into different categories, imposing obligations on offerors and persons seeking admission to trading of these assets. Key requirements include publishing a crypto-asset white paper, acting honestly and professionally, and providing clear and non-misleading information to asset holders. Additionally, issuers of asset-referenced tokens and e-money tokens must meet specific authorization criteria, establish and maintain a reserve of assets, and comply with redemption requests​.

MiCA’s overarching goal is to harmonize the regulatory framework for crypto assets across the EU, eliminating the need for multiple national licenses and allowing crypto-asset service providers authorized in one member state to offer their services across the EU. This significant regulatory development is expected to impact existing and planned Web3 projects, ensuring market integrity and financial stability by regulating public offers of crypto-assets and enhancing consumer protection​​​.

For businesses in the crypto sector, preparing for MiCA involves understanding its scope, assessing its impact on their operations, and planning accordingly to ensure compliance. The regulation’s implementation is set to promote a less fragmented regulatory landscape for crypto and Web3 projects globally, serving as a model for other regulators considering similar legislative frameworks​​.

Remonda Z. Kirketerp-Møller discusses MiCA

This compelling discussion delves into the evolving regulatory landscape of the cryptocurrency market in Europe ahead of implementing the Markets in Crypto-Assets (MiCA) regulation, offering invaluable insights for professionals in the trading industry.

For your convenience, the interview is embedded below in this post, offering direct access to her expert insights and analysis on the evolving regulatory landscape in the cryptocurrency market.

Highlights of the interview include:

The Shift Towards Europe: Remonda predicts a significant shift of investments into the European crypto space, spurred by the upcoming implementation of the Markets in Crypto-Assets (MiCA) regulation. “There’s going to be without any doubt, even more push towards Europe than we are currently seeing,” she stated, emphasizing the role of MiCA in creating regulatory certainty.

Unified Regulation with MiCA: Discussing the impact of MiCA, Kirketerp-Møller highlighted its role in fostering a harmonized regulatory environment across the EU. “It’s going to have a direct application at the member state level…which leaves less room for interpretation,” she explained, noting the advantage of having a regulation over a directive.

Global Regulatory Landscape: The interview touches on how jurisdictions outside the EU, like Hong Kong and Dubai, are becoming attractive for crypto companies seeking regulatory clarity. However, Kirketerp-Møller advises firms to consider their client base’s location before pursuing licenses in these areas, cautioning against potential operational and regulatory challenges.

Muinmos’ Role in Compliance: Kirketerp-Møller outlines the services Muinmos offers to help crypto companies navigate the regulatory landscape. She explains how their modular ecosystem addresses crucial compliance areas, including investor protection and KYC/AML requirements, through advanced technology such as artificial intelligence.

“Our product line is basically through modules and each module addresses different things in investor protection: ‘Can I onboard that client? Can I offer them the crypto product that I’m about to offer? Can I offer it to them based on their classification? Can I offer it to them based on their jurisdiction?”

The Future of RegTech and Crypto Regulations: Reflecting on the future, the discussion acknowledges the critical role of technology in ensuring compliance and the importance of regulatory frameworks in protecting investors. “The market has become incredibly advanced and the risk of fraud and digital tampering has gone to another level,” Kirketerp-Møller notes, underscoring the necessity of sophisticated regulatory technology solutions.

This interview is essential viewing for crypto service providers gearing up their compliance procedures in anticipation of the MiCA regulation, set to take effect by year-end. It is also highly recommended for companies searching for a crypto partner operating within Europe, offering critical insights and guidance for navigating the changing regulatory environment.