Art. 102 Precautionary measures | MiCA regulation | MiCA

This article sets out the escalation procedure that applies when a host Member State's competent authority suspects irregularities by a crypto-asset market participant operating within its territory.

It establishes a clear chain of notification and intervention, starting with the host authority alerting the home authority and ESMA (and EBA where asset-referenced tokens or e-money tokens are involved), then allowing the host authority to take its own protective measures if the home authority's response proves insufficient.

It also provides a dispute resolution pathway where disagreements between home and host authorities can be referred to ESMA or EBA, depending on the type of crypto-asset involved.

This article connects directly to the broader cross-border supervisory cooperation framework in the regulation, acting as the practical enforcement mechanism for situations where the home-country supervision model breaks down.

Important points:

Host Member State competent authorities are required to notify the home Member State competent authority and ESMA when they have clear and demonstrable grounds for suspecting irregularities, with EBA also notified where asset-referenced tokens or e-money tokens are concerned.
Where the home authority's measures fail to resolve a persisting infringement, the host authority may take its own measures to protect clients and crypto-asset holders, including preventing the entity from conducting further activities in the host Member State.
Disputes between home and host competent authorities over measures taken can be referred to ESMA (for most crypto-assets) or EBA (for asset-referenced tokens and e-money tokens), with Article 19(4) of the respective ESA regulations applying.

1. Where the competent authority of a host Member State has clear and demonstrable grounds for suspecting that there are irregularities in the activities of an offeror or person seeking admission to trading of crypto-assets, an issuer of an asset-referenced token or e-money token, or a crypto-asset service provider, it shall notify the competent authority of the home Member State and ESMA thereof.
2. Where the irregularities referred to in the first subparagraph concern an issuer of an asset-referenced token or e-money token, or a crypto-asset service related to asset-referenced tokens or e-money tokens, the competent authority of the host Member State shall also notify EBA.
1. Where, despite the measures taken by the competent authority of the home Member State, the irregularities referred to in paragraph 1 persist, amounting to an infringement of this Regulation, the competent authority of the host Member State, after informing the competent authority of the home Member State, ESMA and, where appropriate, EBA, shall take appropriate measures in order to protect clients of crypto-asset service providers and holders of crypto-assets, in particular retail holders. Such measures include preventing the offeror, person seeking admission to trading, the issuer of the asset-referenced token or e-money token or the crypto-asset service provider from conducting further activities in the host Member State. The competent authority shall inform ESMA and, where appropriate, EBA thereof without undue delay. ESMA, and, where involved, EBA, shall inform the Commission accordingly without undue delay.
1. Where a competent authority of the home Member State disagrees with any of the measures taken by a competent authority of the host Member State pursuant to paragraph 2 of this Article, it may bring the matter to the attention of ESMA. Article 19(4) of Regulation (EU) No 1095/2010 shall apply in such situations mutatis mutandis.
2. By way of derogation from the first subparagraph of this paragraph, where the measures referred to in paragraph 2 of this Article concern an issuer of an asset-referenced token or e-money token, or a crypto-asset service related to asset-referenced tokens or e-money tokens, the competent authority of the host Member State may bring the matter to the attention of EBA. Article 19(4) of Regulation (EU) No 1093/2010 shall apply in such situations mutatis mutandis.