The evolution toward a high-tech economy has accelerated significantly over the past decade, driven by rapid advancements in digital payment technologies and changing consumer preferences. From mobile wallets to cryptocurrency, the landscape of financial transactions is shifting away from traditional cash-based systems.
This transition brings both opportunities and challenges, particularly in areas of financial regulation and oversight. As digital assets grow in prominence, regulatory frameworks such as Anti-Money Laundering (AML) measures and the Markets in Crypto-Assets (MiCA) Regulation are crucial in safeguarding economic stability and protecting investors in an increasingly digital world.
With this blog post,
Evdokia Pitsillidou, an instructor at the institute, demonstrates an in-depth analysis of the differences between fiat currency, digital and crypto assets along with the Crypto Assets Service Providers’ obligations. Further, a comprehensive online course is offered through the IforPE platform, titled
Regulatory Updates on AML & MiCA in 2024.
Towards the end of this blog post, you will find detailed information about the valuable skills and competencies acquired upon course completion and how they contribute to ensuring the successful implementation of the AML and MiCA provisions.
What is the difference between fiat currency, digital and crypto assets?Fiat currency, digital assets, and crypto assets represent three distinct categories within the financial ecosystem, each with its own characteristics and functions:
- Fiat currency refers to government-issued and controlled money, such as the euro or the U.S. dollar, which holds value by decree and is widely accepted for transactions in physical and digital forms.
- Digital assets encompass any assets that exist electronically, including digital representations of value such as e-money, Non-Fungible Tokens (NFTs), and tokenized forms of traditional assets such as stocks and real estate.
- Crypto assets constitute a decentralized digital representation of value that can be electronically transferred, stored and traded and is produced by computers but is not a fiat currency, e-money or a financial instrument.
Understanding the differences between these asset classes is crucial as financial markets evolve, especially in the context of regulatory developments and the increasing shift toward digital economies.
What is a Crypto Asset Service Provider under MiCA regulation?
CASP entities play a key role in the cloud-based financial landscape, offering services related to crypto assets. Under the MiCA regulation, CASP entities are subject to a comprehensive regulatory framework aimed at ensuring transparency, security, and consumer protection within the rapidly evolving crypto market.
MiCA establishes clear guidelines for the authorization, operation, and supervision of CASP entities across the European Union, creating a unified standard to foster trust and stability in the digital economy. Understanding the responsibilities and requirements for CASP entities under MiCA is essential for both businesses and investors navigating this growing sector. An important obligation CASP entities have under MiCA, is the compliance with governance requirements, including:
- the good repute of both the management body and the shareholders,
- the adoption of effective policies and procedures in accordance with MiCA along with their periodic review and assessment by the management body,
- the adequate knowledge, expertise and competencies of CASP employees, to carry out their duties,
- the appropriate and proportionate resources and procedures such as secure Information and Communication Technology (ICT) systems, and
- the maintenance of records of all the crypto-asset services, activities, orders and transactions undertaken.
According to MiCA Regulation’s implementation timeline, it is expected to come into full application by December 2024.
What is the Regulatory Updates on AML & MiCA in 2024 course and what does in include?
The
Regulatory Updates on AML & MiCA in 2024 course is designed by SALVUS Funds and delivered by their Risk & Compliance Director,
Evdokia Pitsillidou. This program is developed for professionals holding key compliance and managerial positions, as well as professionals working at Cyprus Investment Firms, Crypto-Asset Service Providers (CASP), Electronic Money Institutions (EMI), and other regulated entities dealing with ML/TF threats.
Professionals undertaking this course will acquire the skills and competencies necessary for enhancing their firm's AML/CFT requirements and regulatory compliance. After this course, they can ultimately ensure comprehension of key information regarding the client onboarding procedure according to AML and MiFID regulations.
- Money Laundering (ML), Stages and Methods of ML
- What is Money Laundering (ML)?- The phases/stages of Money Laundering (ML), and examples
- The methods of Money Laundering (ML)
- Differences between Money Laundering (ML) and Terrorist Financing (TF)
- Similarities between Money Laundering (ML) and Terrorist Financing (TF) - The AML Regulatory Framework
- Supervisory Authorities - Powers of CySEC
- AML Regulatory Framework
- Upcoming Regulations
- Regulation for tracing crypto-asset transfers
- Monthly Prevention Statement
- EU AML Authority- Fiat Currency, Digital Assets and Crypto Assets
- What is a Fiat Currency?
- What is a Digital Asset?
- What is a Crypto-Asset?
- Fiat vs. Crypto
-What is Crypto Asset Service Provider
- Questions & Answers- Introduction to MiCA Regulation
- What is MiCA?
- Aim & Objectives
- Who is obliged under MiCA?
- Who is out of the scope of MiCA?
- Coming into force
- MiCA Implementation Timeline
- Main Provisions- MiCA Provisions for Crypto-Asset Service Providers
- Authorisation - Cross-border provision of services
- CASP Obligations
- ESMA Register
- AML/CFT obligations of MiCA CASP
- EBA ML/TF Risk Factors Guidelines- Identifying ML/TF risk factors
- Assessing the ML/TF risks
- Customer Due Diligence, Enhanced and Simplified
- Documentation
- Transaction Monitoring
- Wallet Identification
- CASP ML/TF specific factors
The material of the Regulatory Updates on AML & MiCA course is provided both in PDF slides and online video recordings, suitable for self-paced learning. Learners enrolled in the course have the flexibility to learn wherever and whenever.
Upon completion of the course, learners can evaluate their comprehension of the covered material by answering a series of questions reflecting the gained knowledge.
The completion of this course counts towards the Continuous Professional Development (CPD) annual requirements for professionals, and holders of the CySEC Advanced, Basic and AML certifications.
