The Estonian Financial Supervision Authority (Finantsinspektsioon) has recently posted information on how to apply for a MiCA license, although it is currently available only in the Estonian language
It starts with the statement that according to the Crypto Asset Market Act (KrüTS – in Estonian), the activities of crypto asset market participants were brought under the supervision of the Financial Supervision Authority.
KrüTS applies to persons who are engaged in issuing, offering, and trading crypto-assets on the relevant platform and who provide crypto-asset services within the meaning of Regulation (EU) 2023/1114 of the European Parliament and of the Council (hereinafter MiCA).
As you already know, there are the following types of crypto-assets :
an asset-based token (also known as ART);
e-money token, and (also known as ERT);
into another crypto asset (also known as CASP).
An asset-based token is a type of crypto-asset that is not an e-money token and aims to maintain a stable value by adhering to some other value or right or a combination thereof, including one or more official currencies.
An e-money token is a type of cryptocurrency that aims to maintain a stable value by following the value of a single official currency.
Other cryptocurrency is a type of cryptocurrency that is neither an asset-based token nor an e-money token. It does not follow any other value or right or a combination thereof and does not maintain a stable value by following the value of a single official currency.
Applying for the license
To apply for the MiCA license, the market participant (here, for example, CASP service provider) must comply with MiCA art 62 and Estonian KrüTS § 6 sec 1.
Unlike some other EU competent authorities, the Estonian Financial Supervision Authority has not yet developed and published separate Estonian or English forms, but there is a reference to ESMA RTS Annex VI forms
Hopefully, in the near future, license application forms in Estonian or English will also be published on the website
Processing fee
A processing fee of 3,000 euros is payable when applying for a license for a cryptocurrency service provider, asset-based token issuer, or e-money institution.
There is information about the cross-border provision of cryptocurrency services. According to that, a cryptocurrency service provider that intends to provide cryptocurrency services in more than one Member State shall submit the following information to the competent authority of the home Member State:
the list of Member States where the cryptocurrency service provider intends to provide cryptocurrency services;
cryptocurrency services that the cryptocurrency service provider intends to provide across borders;
the date on which the provision of cryptocurrency services is planned to begin;
a list of all other activities of the cryptocurrency service provider that are not covered by the MiCA.
The cryptocurrency service provider may start providing services in the member states specified in the notification from the day when the competent authority of the said country receives the notification from the Financial Supervision Authority or no later than 15 calendar days after submitting the information to the Financial Supervision Authority.
In the case of cross-border service provision notification, no processing fee has to be paid.
Timeframe
The process of evaluating an activity license application is two-part. Firstly, Finantsinspektsioon assesses the completeness of the activity license for other crypto-asset services within 25 working days. The Financial Supervision Authority informs the applicant about the completeness or incompleteness of the application.
After that, and if Finantsinspektsioon has concluded that the application is complete, the Finantsinspektsioon will assess within 40 working days whether the applicant meets the requirements of MiCA and KrüTS.
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