Why should CASP be familiar with the RTS and ITS under MiCA?

For CASPs operating within the EU, the primary legislative framework is Regulation (EU) 2023/1114, known as the MiCA Regulation, which comprehensively governs the crypto-assets market across the European Union. However, it is equally important for CASPs to understand the implementing regulations under MiCA, which facilitate its practical application and ensure consistent interpretation at the operational level.

The European Securities and Markets Authority (ESMA) has issued draft implementing regulations in three Consultation Packages, each covering specific aspects of the MiCA Regulation and setting a framework for detailed regulatory guidance.

The MiCA implementing regulations come in two forms: Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS):

• RTS (Regulatory Technical Standards) clarify how specific legislative provisions are to be applied in practice. Their purpose is to provide the technical specifications necessary for effective and uniform compliance with broader EU legislative requirements.

• ITS (Implementing Technical Standards) offer detailed guidance on procedural aspects, such as standardized document templates and reporting formats, to streamline and harmonize compliance processes across the EU.

Both types of implementing regulations (classified as Level 2 measures in the EU legislative hierarchy) clarify MiCA requirements relevant to CASPs, such as:

• Required information for authorisation applications as a CASP - specified by the RTS on application content, issued under Article 62(5) of the MiCA Regulation.

• Standardized forms, templates, and procedures for CASP authorisation applications - established by the ITS on application forms and templates, issued under Article 62(6) of the MiCA Regulation.

Understanding both RTS and ITS is essential for CASPs to apply the MiCA regulations accurately and avoid potential misinterpretations.