MiCA Record-Keeping Regulatory Technical Standards (RTS)
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This report examines Commission Delegated Regulation (C(2025) 1206 final), which sets forth the Regulatory Technical Standards (RTS) for record-keeping by Crypto-Asset Service Providers (CASPs) under the Markets in Crypto-assets (MiCA) Regulation. These RTS, mandated by Article 68(10) of MiCA, aim to standardise and strengthen record-keeping practices to enhance market integrity and investor protection and align with existing financial sector standards (MiFID II).
The RTS mandates comprehensive and durable record-keeping for all CASP activities, including policies, client agreements, asset safekeeping, transaction logs, and client identification. Key provisions include stringent record retention requirements, detailed documentation of all operational aspects, standardised client and crypto-asset identification (utilising LEIs and DTIs where applicable), specific stipulations for third-country transactions, and strict adherence to data protection regulations.
Implementation of these RTS will necessitate significant operational adjustments for CASPs. This includes substantial investments in technology infrastructure, robust data management and governance frameworks, enhanced client identification and verification processes (including LEI adoption), comprehensive transaction monitoring, and stringent data security measures. Furthermore, extensive staff training and ongoing regulatory tracking will be crucial for sustained compliance.
In conclusion, these RTS establish a critical framework for transparency and accountability within the crypto-asset market. By demanding meticulous record-keeping, the regulation aims to foster a secure and trustworthy environment, ultimately contributing to the sustainable growth and mainstream adoption of crypto-assets within the EU. CASPs must prioritise compliance and invest accordingly to avoid regulatory penalties and capitalise on the opportunities presented by a more regulated and mature market.
