What Are the Key Custody Requirements Proposed under the EU’s MiCA Regulation?

The EU's Markets in Crypto-Assets (MiCA) regulation proposes stringent custody requirements for Crypto Asset Service Providers (CASPs). These include the obligation to act honestly, fairly, and professionally in the best interest of clients.

CASPs must maintain clear asset segregation, implement robust security policies, and have sufficient prudential safeguards (capital requirements) to cover potential risks. They must also have a clear return policy for client assets.