BCAS

🏷 Classifying the Top 50 Tokens Under MiCA ⚖ Understanding how tokens are classified under MiCA is essential to grasp the new scenario introduced by this legal framework. To ease this challenging task, Jonathan Galea has penned a compelling piece titled 'Classifying the Top 50 Tokens Under MiCA.' Following a brief reminder of the crypto-assets that are outside MiCA's scope and a definition of those under MiCA's umbrella, we introduce a table showing how the top 50 tokens by market cap, are classified under the EU framework. Find the full article here: https://lnkd.in/dmVkA6YZ

Departing a bit from our recent batch of long-form reports (or mini-Bibles), and delivering a more succinct article on crypto-asset classifications under MiCA, including how we believe the top 50 crypto-assets qualify under MiCA's interesting token taxonomy. It's important to keep in mind that a crypto-asset's qualification as an EMT, ART, or OCA (other crypto-asset) does not necessarily & automatically bear with it obligations under MiCA. Titles II, III, and IV mostly speak of obligations imposed upon persons (issuers if we're talking about Titles III and IV) that are looking to conduct an offer to the public in the Union, or seeking to have crypto-assets admitted to trading onto a trading platform in the Union. Mere issuances of crypto-assets (without being accompanied by an offer to the public, or for which there is an attempt to seek their admission to trading in the Union) generally fall clear of MiCA; the one notable exception is the issuance of EMTs (single-fiat pegged stablecoins) that reference an official currency of the EU, where in such case the issuance itself is regarded as an offer to the public in the Union. Here's the latest article, and as always, feel free to share any feedback! https://lnkd.in/dAsbCnyE

🛡 Inbuilt Anonymisation under MiCA 🛡 Our latest article, written by Bastien Choquez, takes an in-depth look at the concept of ‘built-in anonymisation’ under #MiCA, delving into what constitutes a ‘built-in anonymisation function’ and how it is interpreted within the regulatory framework. In addition to outlining the implications for issuers, offerors, persons seeking admission to trading and CASPs, we also explore how this concept is addressed under other European frameworks, including the Transfer of Funds Regulation (TFR) and Anti-Money Laundering (AML) laws. Find the full article here: https://lnkd.in/d_a_tag4

🖼 NFTs under MiCA 📜 Following the spirit behind our "Decentralisation under MiCA: the Definitive Handbook for DeFi", we are pleased to introduce the next piece in our series of MiCA-focused treatises: "NFTs under MiCA: The Definitive Handbook". This latest handbook delves into the regulatory framework surrounding NFTs, referred to within #MiCA as “unique and non-fungible crypto-assets” (UNFCAs). Through this extensive piece of work, we dissected the technical details of the key NFT standards, including ERC-721, ERC-1155, and ERC-404, the different methods of metadata storage employed by NFTs, such as on-chain, off-chain, or cross-chain, and the rights they offer to their holders, to then tackle the concepts of Non-Fungibility and Uniqueness. Building on these technical nuances, we scrutinise the distinctions between different NFT categories, drawing on interesting and unique analogies to finally assess their potential regulatory implications, identifying which assets are likely to fall under MiCA’s scope and which may remain exempt. NFT platforms and related projects can find in this handbook a practical guide to safely navigate the evolving regulatory environment under MiCA, grasping clear insights into how MiCA's framework can at times apply to NFTs. For further details, we invite you to read the complete NFTs under MiCA Handbook or download the PDF version here: https://lnkd.in/dmjZDaQ4

Good things come in pairs. After the fantastic feedback we've received on our DeFi under MiCA Handbook, we're rolling out our second extensive treatise, this time round on NFTs under MiCA - or, as they're termed, "unique and non-fungible crypto-assets" (UNFCAs). NFTs come in myriad shapes, forms, and token standards. We've looked in detail at the prominent standards (ERC-721, ERC-1155, and the Schroedinger-like ERC-404), the various forms of metadata (on-chain, off-chain, cross-chain), and pondered on whether NFTs actually grant holders any rights per se. We then picked analogies to compare to the different types of NFTs that are prevalent in the market, and assessed, in turn, the possible implications of each type under MiCA. Some classify as UNFCAs and are excluded, while others fall firmly within scope. This time round, we managed to shave 12 pages off the previous handbook, coming in at a still-strong 53 pages - but then again, who's counting (right?) As always, keep the feedback coming, and forget about the "pairs" - we have another extensive handbook in the making! Thanks to Guilherme Maia and Tom Berkman for the great work on this piece https://lnkd.in/dEWfSteq

🌐 Decentralisation under MiCA ⚖ The notable rise and growth of DeFi has presented as many opportunities as it has challenges. A cohesive definition of DeFi remains, to this date, elusive, with knock-on effects such as being unable to draw the exact line where DeFi, in its various guises, stops being unregulated and becomes regulated. Such, indeed, is a debate that arises within the context of MiCA. In response, the Technical and Legal departments at BCAS, led by Jonathan Galea, have been dedicated to an in-depth analysis of the extent to which DeFi is captured under MiCA, giving due attention to the underpinning word of the term itself: decentralisation. Drawing from our extensive experience working with leading DeFi projects, we have developed a comprehensive handbook for any DeFi project seeking clarity on how it will be impacted by MiCA. Titled 'Decentralisation under MiCA: The Definitive Handbook for DeFi', this extensive treatise analyses decentralisation from five distinct angles to determine which regulatory considerations under MiCA apply to DeFi projects. We also outline the relevant criteria that might lead a DeFi platform or protocol to be considered within MiCA's scope and suggest measures to avoid falling within its regulatory reach. Read the full Decentralisation Handbook or download the PDF version here: https://lnkd.in/eWQnsb_B

As most of you know by now, I'm somewhat of a fan of Latin terms, so do allow me to unveil what is, without any exaggeration, our 'magnum opus' - a treatise on the concept of decentralisation, and the extent of its applicability under MiCA. While this is a culmination of weeks of work by the team at BCAS, the knowledge depth behind it spans years, as we truly sought to open-source the observations, discussions, and arguments we have tailored while working hand-in-hand with some of the best known names in DeFi. 67 pages, over 22,000 words, but with firm, clear conclusions, as we want to give DeFi its best shot at growing further without intended or unintended regulatory implications. We explore decentralisation from five distinct aspects, laying out best practices and thresholds in each area. In the second part of the handbook, we focus fully on MiCA, dissecting the definition of a CASP to bare atoms, and engaging in a thesis on how the overarching concept of decentralisation impacts matters such as the offering of crypto-asset services, running an online interface, and publicly offering crypto-assets. What makes us proud, most of all, of this handbook, is that this is our best effort to date to open a window into our daily work, which we do with passion and love for the industry. But before I err on the side of soppiness - I'll stop here, and invite you all to join us on this journey. https://lnkd.in/dt83J9mv

📈 MEV and MiCA's Article 92 📜 MEV activities have had a considerable impact on the crypto ecosystem, prompting a complete reshaping of how transactions are processed on most major blockchains. The eminence of MEV activities has captured the attention of regulators around the world, and the EU has been no exception. In its third consultation package, ESMA has triggered the question of whether miners and validators, in the context of MEV, should be considered as PPAETs and therefore obliged to comply with the requirements of #MiCA's article 92. In our latest article, co-authored by Jonathan Galea and Martín Azpiroz, we provide a detailed exploration of the MEV world, highlighting the current landscapes in Ethereum and Solana, detailing the role of each of the actors involved in MEV, and reviewing the most relevant MEV-related activities. This technical introduction to the topic allows us to substantiate our response to ESMA's question, which is introduced in the last section of this piece. Find out how we argued that miners and validators are not to be considered PPAETs and, consequently, are not obliged to comply with MiCA's article 92: https://lnkd.in/d6PYc7ye

🌍 The Environmental Impact of Crypto under MiCA 🌍 As the crypto industry evolves, its environmental footprint is under increasing scrutiny. Our latest article explores why "energy" is becoming a contentious issue within the EU's #MiCA framework. From the challenges of energy disclosure to the complexities of sustainability in Proof of Work vs. Proof of Stake, this opinion piece delves into the critical intersection of crypto and environmental responsibility. Read more: https://lnkd.in/dRf-AjS3

🔍 Exploring Interest-Bearing Stablecoins under MiCA 🔍 Stablecoins have revolutionized the crypto world, but their lack of interest accrual poses a challenge. Our in-depth article dives into the technical designs of interest-bearing stablecoins and their legal implications under the EU's #MiCA regulation. From the innovative mechanics of rebasing tokens to the complexities of price appreciation models, this piece provides a comprehensive look at how these stablecoins can address market inefficiencies while navigating the regulatory landscape. Read more: https://lnkd.in/dHAs5fUx