Operational Efficiency
Streamlined processes and better-trained staff resulted in increased operational efficiency.
Background
The client operates in the fast-evolving cryptocurrency industry, providing a range of services to both retail as business customers. With the European Union’s introduction of MiCAR, the client needed to ensure full compliance to continue their operations within the regulatory framework and to build trust with their customers and investors.
Key Observations:
- The client’s existing compliance framework was not aligned with the MiCAR requirements.
- There was a lack of comprehensive documentation and reporting mechanisms required by MiCAR.
- The client’s staff required training to understand and implement the new regulations effectively.
Solution
Our consultancy firm, with the necessary experience on the regulatory side of crypto, helped transitioning the clients company to compliance with the new crypto regulation.
Implemented improvements:
- MiCAR proof onboarding flow: We redesigned the client’s compliance framework, integrating MiCAR requirements into their operational and onboarding processes.
- Documentation and Reporting: Developed a robust documentation and reporting system to meet MiCAR’s stringent transparency and record-keeping mandates.
- Implementing control framework: Implemented a continuous first and second line system to ensure ongoing compliance;
- Stakeholder Communication: Established clear communication channels to keep stakeholders informed about compliance status and regulatory updates.
Results
The project successfully ensured the next steps in the preparation of the MiCAR license application ahead of the regulatory deadlines. This proactive approach not only mitigated potential legal risks but also enhanced the client’s reputation for compliance and reliability within the industry.
Future Steps
To maintain compliance and adapt to future regulatory changes, we recommend:
- Regular Audits: Conduct regular compliance audits to ensure ongoing adherence to MiCAR and other relevant regulations, like for example the Digital Operational Resilience Act (DORA) and the Transfer of Funds Regulation (TFR).
- Continuous Training: Implement a continuous training program to keep staff updated on regulatory developments.
- Review policies and procedures: Regularly review and update internal policies and procedures to align with evolving regulatory requirements. Involve key stakeholders in the review process to ensure policies are practical and effective.
- Regulatory Liaison: Establish and maintain open communication channels with regulatory bodies to stay informed about upcoming changes and receive guidance on compliance matters.
Conclusion
The project highlights our consultancy firm’s expertise in assisting with the complex regulatory changes in the crypto market. By delivering a control framework, implementing policies and procedures and overall compliance awareness, we helped our client in transitioning to MiCAR compliance, with a goal of safeguarding their market position and enhancing their operational integrity.
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