Annex | CRITERIA FOR THE SELF-ASSESSMENT OF CRYPTO-ASSET SERVICE PROVIDERS

1. The nature of the crypto-asset service provider, based on the following elements:
  the class designation referred to in Annex IV to Regulation (EU) 2023/1114;
  the average liquidity levels, or market depth, of crypto-assets available to trade on a trading platform for crypto-assets, where applicable;
  the role of the crypto-asset service provider in the financial system, including whether the crypto-asset service provider operates a trading platform for crypto assets and whether crypto-assets traded on its platform are traded on other trading platforms for crypto-assets.
2. Scale, by assessing the impact of the crypto-asset service provider on the orderly functioning of the markets based on the following elements, where applicable:
  whether the crypto-asset service provider qualifies as significant as referred to Article 85 of Regulation (EU) 2023/1114;
  the number of countries in which the crypto-asset service provider is conducting business activity;
  the number of clients;
  the number of active users;
  the value of crypto-assets held in custody;
  the volume of transactions on a trading platform for crypto-assets;
  the number of transfers of crypto-assets conducted on behalf of clients;
  the number of orders executed on behalf of clients.
3. Complexity, by assessing the following elements, where applicable:
  the structure of the crypto-asset service provider in terms of ownership and governance, and its organisational, operational, technical, physical, and geographical presence;
  the level of outsourcing of the crypto-asset service provider, and in particular whether any critical or important operational functions have been outsourced;
  the number and type of distributed ledgers used in the execution of services;
  the number of DLT network nodes the crypto-asset service provider operates on one or multiple distributed ledger(s);
  the number and type of smart contracts deployed and maintained by the crypto-asset service provider;
  how the private cryptographic keys of clients or other means of accessing crypto-assets are secured under safekeeping;
  the use of software and hardware-based custodial wallets or wallets that secure cryptographic keys using multiple fiduciaries.
For the purposes of points (b)(iii) to (viii), the crypto-asset service provider shall use for the self-assessment the daily average over a one-year reference period.

To avoid disproportionate administrative burden for small and medium-enterprises and start-ups, crypto-asset service providers should consider in their business continuity policy the scale, nature, and range of the services they provide. That means that crypto-asset service providers should determine their specific business continuity requirements on the basis of a robust self-assessment, based on a number of criteria that would enable them to implement a business continuity policy that is commensurate with the market impact of their services. The self-assessment should also take into account other circumstances beyond those listed in the Annex that may have an impact on the crypto-asset service provider.

Annex CRITERIA FOR THE SELF-ASSESSMENT OF CRYPTO-ASSET SERVICE PROVIDERS

Relevant recitals