MiCA in Action: Pre-contractual Transparency Requirements for Crypto-asset Platforms Every Investor Should Know

Introduction

The entry into force of the Markets in Crypto-Assets Regulation (MiCA) marks a turning point in the regulation of the European crypto ecosystem. One of the most significant aspects of this regulation is the transparency obligation imposed on crypto-asset service providers, particularly regarding the pre-contractual information they must provide to their clients.

This obligation, primarily outlined in Guideline 1 on general provisions related to policies and procedures for the transfer of crypto-assets, constitutes a fundamental guarantee for users and a new responsibility for platforms. Let us examine in detail the information that clients must receive before formalizing any service agreement.

Mandatory Pre-contractual Information: A Shield for the Investor

According to the MiCA regulation, crypto-asset service providers must provide, well in advance and in electronic format, complete and comprehensible information about the services offered. This obligation is not merely a formality but a substantial requirement aimed at balancing the informational asymmetry between platforms and users.

Identification and Supervision of the Provider

The client must know with precision:

• The full name of the service provider
• The address of its registered office
• The available means of contact, including email
• The competent national authority supervising the provider

This seemingly basic information is crucial in a sector where the clear identification of the service provider and its submission to regulatory supervision are fundamental guarantees.

Technical and Operational Characteristics of the Service

The platform must detail:

• The main characteristics of the crypto-asset transfer service
• The procedure for initiating, agreeing to, or canceling a transfer
• The information necessary for authentication and the proper execution of operations
• The conditions under which the platform may reject an instruction
• The procedures for determining the time of receipt of instructions
• The distributed ledger technology (DLT) networks supported for each crypto-asset
• The maximum execution time for transfers
• The estimated time or number of confirmations required to consider a transaction irreversible

These technical elements, far from being minor details, configure determining aspects of the service that condition the user’s experience and the security of their operations.

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Economic Conditions and Responsibility

With absolute transparency, the following must be communicated:

• All costs, fees, and commissions associated with the service
• The breakdown of amounts where applicable
• The provider’s responsibility for unauthorized or incorrectly executed transfers
• The maximum amount of such responsibility

Clarity in economic conditions prevents unpleasant surprises and allows the user to correctly evaluate the cost-benefit relationship of the contracted service.

Practical Aspects of the Contractual Relationship

Finally, the platform must inform about:

• The technical requirements for the client’s equipment and software
• The form and frequency of communications
• The languages available for the contract and communications
• The notification procedures in case of fraud or security threats
• The means and deadlines for notifying unauthorized transfers
• The client’s right to terminate the agreement and the procedure for doing so

Additional Obligations of Platforms

The regulation does not merely establish a catalog of pre-contractual information but goes further by imposing additional requirements:

1. Clarity and comprehensibility: Information must be provided in easily understandable terms and in a clear manner.
2. Permanent accessibility: Throughout the contractual relationship, the client must be able to access or receive, upon request, both the agreement and the pre-contractual information in electronic format.
3. Notification of changes: Any modification of the conditions must be communicated well in advance.
4. Immediate availability: Providers must be able to provide the relevant information when presenting the draft agreement.
5. Client education: As a best practice, providers are encouraged to provide educational material to help clients understand their rights and the risks associated with crypto-asset transfers.

Conclusions: A Step Towards Market Maturity

The pre-contractual information obligations established by MiCA represent a significant advancement in the protection of crypto-asset service users. This regulation should not be interpreted as an additional bureaucratic burden but as a necessary step towards the maturity and professionalization of the sector.

For platforms, diligent compliance with these requirements not only avoids sanctions but can become a competitive advantage that generates trust among users. For investors, detailed knowledge of this information constitutes a fundamental tool for making informed decisions.

In a market that has operated for years with little regulation, these new transparency requirements represent a paradigm shift that benefits all actors committed to a sustainable, secure, and professional crypto ecosystem.

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