Article 67 Prudential requirements

1. the amount of permanent minimum capital requirements indicated in Annex IV, depending on the type of the crypto-asset servicesmeans any of the following services and activities relating to any crypto-asset:providing custody and administration of crypto-assets on behalf of clients;operation of a trading platform for crypto-assets;exchange of crypto-assets for funds;exchange of crypto-assets for other crypto-assets;execution of orders for crypto-assets on behalf of clients;placing of crypto-assets;reception and transmission of orders for crypto-assets on behalf of clients;providing advice on crypto-assets;providing portfolio management on crypto-assets;providing transfer services for crypto-assets on behalf of clients; provided;

2. one quarter of the fixed overheads of the preceding year, reviewed annually.

Crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; that have not been in business for one year from the date on which they began providing services shall use, for the calculation referred to in paragraph 1, point (b), the projected fixed overheads included in their projections for the first 12 months of service provision, as submitted with their application for authorisation.

1. staff bonuses and other remuneration, to the extent that those bonuses and that remuneration depend on a net profit of the crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; in the relevant year;

2. employees’, directors’ and partners’ shares in profits;

3. other appropriations of profits and other variable remuneration, to the extent that they are fully discretionary;

4. non-recurring expenses from non-ordinary activities.

1. own fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366;, consisting of Common Equity Tier 1 items and instruments referred to in Articles 26 to 30 of Regulation (EU) No 575/2013 after the deductions in full, pursuant to Article 36 of that Regulation, without the application of threshold exemptions pursuant to Articles 46 and 48 of that Regulation;

2. an insurance policy covering the territories of the Union where crypto-asset servicesmeans any of the following services and activities relating to any crypto-asset:providing custody and administration of crypto-assets on behalf of clients;operation of a trading platform for crypto-assets;exchange of crypto-assets for funds;exchange of crypto-assets for other crypto-assets;execution of orders for crypto-assets on behalf of clients;placing of crypto-assets;reception and transmission of orders for crypto-assets on behalf of clients;providing advice on crypto-assets;providing portfolio management on crypto-assets;providing transfer services for crypto-assets on behalf of clients; are provided or a comparable guarantee.

1. it has an initial term of not less than one year;

2. the notice period for its cancellation is at least 90 days;

3. it is taken out from an undertaking authorised to provide insurance, in accordance with Union or national law;

4. it is provided by a third-party entity.

1. loss of documents;

2. misrepresentations or misleading statements made;

3. acts, errors or omissions resulting in a breach of:

   1. legal and regulatory obligations;

   2. the obligation to act honestly, fairly and professionally towards clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;;

   3. obligations of confidentiality;

4. failure to establish, implement and maintain appropriate procedures to prevent conflicts of interest;

5. losses arising from business disruption or system failures;

6. where applicable to the business model, gross negligence in the safeguarding of clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;’ crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; and fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366;;

7. liability of the crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; towards clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services; pursuant to Article 75(8).