ACT NO. 248/2024 COLL. ON CERTAIN OBLIGATIONS AND AUTHORIZATIONS IN THE FIELD OF CRYPTO-ASSETS AIMS TO ALIGN SLOVAK LEGISLATION WITH REGULATION (EU) 2023/1114 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ON MARKETS IN CRYPTO-ASSETS (MICA)

#143Act No. 248/2024 Coll. on certain obligations and authorizations in the field of crypto-assets aims to align Slovak legislation with Regulation (EU) 2023/1114 of theEuropean Parliament and of the Council on markets in crypto-assets (MiCA)

The law defines the framework for the issuance and offering of crypto-assets to the public, sets rules for tokens linked to assets and electronic money tokens. It also determines the obligations of providers of services related to crypto-assets, such as exchange offices and wallet services, which are now subject to licensing.

The National Bank of Slovakia (NBS) is entrusted withsup ervising compliance with this law and the MiCA regulation. The Act also contains amendments to related legislation, including the Act on Accounting, where the term “virtual currency” is replaced by the term “cryptoasset” and the category “electronic money tokens” is introduced.

In the case of serious or repeated violations, the NBS mayimpose a fine. This applies in particular to deficiencies in the activities of an entity operating in the field of cryptoassets, such as cryptoasset custody and management providers and cryptoasset advisory providers, whose rights and obligations are regulated by Sections 3 and 4 of this Act. The Act also stipulates:

1. The asset reserve must be separated from the issuer's assets and from the reserves of other tokens linked to assets or electronic money tokens of the same issuer. This separation shall ensure that the funds intended to cover liabilities to token holders are protected from the claims of the issuer’s creditors.
2. The asset reserve may not be subject to execution or other compulsory measures to satisfy claims against the issuer.
3. In the event of bankruptcy, restructuring or other measures restricting the issuer's payments, the rights of token holders to the asset reserve shall not be affected, who have a preferential right to satisfaction of their claims from this reserve.
4. The NBS may impose a ban or restriction on the activities of an entity in the field of crypto-assets if it finds that the entity is in breach of obligations set out in the law or the MiCA Regulation or if the entity poses a risk to financial stability or investor risk.
5. In situations requiring immediate intervention, the NBS is authorised to adopt urgent temporary measures, which may be applied without prior notice and shall take effect immediately, in order to prevent an immediate threat to the financial market or the interests of investors.

The provisions of this Act are designed to ensure effective supervision of the crypto-asset market and to protect investors from unfair practices.