MiCA and PSCA: Licensing and Accounting Separation of Client Funds🔍

BECTRA
Feb 1
3 min read

One of the fundamental aspects of this regulation concerns the PSCA licensing process and the accounting separation of client funds.

This article outlines the essential obligations to secure approval and ensure the safety of your clients’ funds and crypto-assets.

1️⃣ Separation of Client Funds and Wallets: A Key MiCA Requirement

The MiCA regulation imposes strict rules on securing and separating client assets.

These requirements aim to :

✔️ Prevent the misuse of client funds by companies.

✔️ Ensure transparency and investor protection.

✔️ Strengthen trust in the crypto ecosystem.

📌 Key Obligations

✅ Client wallets must be separate from the company’s wallets.

✅ Funds must be deposited within 24 hours in a central bank or a credit institution, in a separate account.

📜 Regulatory reference : Article 62, paragraph 2, point m of the MiCA regulation.

💡 Why is this requirement important?

In the event of bankruptcy or litigation, accounting separation prevents client funds from being mixed with company assets, ensuring their legal protection.

2️⃣ ESMA’s Specific Requirements for PSCA Licensing

The European Securities and Markets Authority (ESMA), in its Regulatory Technical Standards (RTS), states that any PSCA seeking approval must provide a detailed description of policies and procedures ensuring the separation of client funds and crypto-assets.

📌 Key Elements to Document:

🔹 1. Guaranteeing Asset Separation

📌 Explanation of the method used to separate client funds and crypto-assets.

📌 Justification that client funds are not used for internal operations.

📌 Security measures for client wallets, separate from company wallets.

🔹 2. Securing Cryptographic Keys

📌 Description of the approval and protection system for cryptographic keys.

📌 Use of multi-signature wallets and advanced security protocols.

🔹 3. Managing Omnibus Accounts

📌 Explanation of how client assets are separated within shared wallets (omnibus accounts).

🔹 4. Depositing Client Funds with a Central Bank or Credit Institution

📌 Procedures ensuring client funds are deposited within 24 hours in a regulated financial institution.

📌 Verification that these funds are held in a separate account from the company’s operational treasury.

💡 In summary, MiCA compliance requires rigorous and transparent management of client crypto-assets.

3️⃣ Accounting Impact: Your Books Must Reflect This Separation from Year 1

🚀 Consequences for PSCA Accounting:

✔️ Obligation to account separately for client funds and assets.

✔️ Regular audits and controls to ensure compliance.

✔️ Implementation of detailed reporting to prove adherence to the regulations.

📢 The adoption of the MiCA regulation mandates a strict organization of crypto accounting from the first year of operation. Proper accounting oversight is essential to avoid penalties.

🎯 Why Is Compliance Essential ?

💡 Complying with these obligations means :

✅ Avoiding financial penalties for non-compliance.

✅ Strengthening client and investor confidence.

📢 Conclusion: Are You Ready for MiCA Licensing?

The accounting separation of client funds is a key aspect of the MiCA regulation. If you are a PSCA, structuring your operations accordingly is crucial.

👉 Need support for MiCA compliance ? Contact us to discuss your needs! 💬

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