Authorization: Crypto-asset service providers must obtain authorization from the relevant national authorities to operate in the EU market. This authorization process involves submitting detailed information about their business model, operations, and compliance measures.
Governance and Risk Management: Crypto-asset service providers must establish sound governance structures and risk management processes to ensure the safety and integrity of their operations. This includes implementing policies and procedures to prevent money laundering, terrorist financing, and other illicit activities.
Investor Protection: Crypto-asset service providers must take measures to protect the interests of clients, such as providing clear and transparent information about services, fees, and the risks associated with crypto assets.
Capital Requirements: Crypto-asset service providers may be required to maintain a minimum level of capital to ensure financial stability and their ability to meet customer obligations.
Compliance with AML and CFT Regulations: Crypto-asset service providers must comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, including conducting customer due diligence, monitoring transactions, and reporting suspicious activities to the relevant authorities.
