Significant changes in the regulation of share types and their accounting concerning public limited liability companies

To enhance transparency in the operations of public limited liability companies by providing access to information about the owners of public limited liability companies and to mitigate the risks of money laundering, terrorism, and proliferation financing, amendments to the Commercial Law (Amendments) were adopted this summer which came into effect on July 1, 2023. The Amendments introduce changes to share types and processes concerning the way shares are accounted for, along with several other obligations for public limited liability companies. In the event of non-compliance, the Commercial Register will have the authority to decide on the termination of the company’s activities.

Read about the changes related to the regulation of commercial companies’ operations here.

Changes in the Classification of Share Types

The Amendments stipulate that shares will no longer be classified as name shares (in Latvian – vārda akcijas) and bearer shares (in Latvian – uzrādītāja akcijas) but rather as:

• Registered shares (in Latvian – reģistrētās akcijas) (previously referred to in Latvian as vārda akcijas), which are to be recorded in the shareholder register, and
• Dematerialized shares (in Latvian – dematerializētās akcijas) (previously referred to as bearer shares, in Latvian – vārda akcijas), which are to be deposited in the central securities depository (CSD).

According to the Amendments, a public limited liability company can now only have one type of shares (either registered or dematerialized); it will no longer be possible to issue both types simultaneously.

The Amendments also remove the requirement for public limited liability companies to specify the form of shares in their articles of association (until now, the Commercial Law allowed shares to be in paper and dematerialized form) and information about share conversion (if provided for in the articles of association).

In light of these changes, public limited liability companies are required to make corresponding amendments to their articles of association.

What is the Deadline for the Changes in the Articles of Association?

If a public limited liability company currently has issued both types of shares, it must decide in favour of one share type and register the relevant changes in the articles of association by June 30, 2024 (starting from January 1, 2024, in conjunction with other article of association changes).

For companies that have already issued only one type of share but still reference the previous share names in their articles of association (vārda akcijas or uzrādītāja akcijas) or include references to the form of shares, the update should be done concurrently with other changes in the article of association but no later than by July 1, 2026.

What do Public Limited Companies Need to Consider Depending on the Chosen Share Type?

For public limited companies that will have registered shares:

• The record-keeping for registered shares will now be consistent with the current procedure for keeping the shareholder register of a limited liability company (SIA). In particular, the board will be responsible for maintaining the shareholder register, a file consisting of separate compartments. The shareholder register will have to be updated chronologically whenever there are changes. The Amendments extend the information to be entered in the shareholder register. Unlike the previous procedure, when the shareholder register was accessible only to the company itself or to persons to whom such rights were granted by laws and regulations, the up-to-date shareholder register will now have to be filed with the Commercial Register and the information about registered shareholders will be publicly available.
• The shareholder register must be drawn up in accordance with the new requirements and submitted to the Commercial Register by June 30, 2024. It should be noted that from 1 January 2024, if there are any changes to the articles of association or share capital of a public limited liability company, the shareholder register must be automatically registered with the Commercial Register.

For public limited companies that will have dematerialized shares:

• Dematerialised shares will have to be registered in a CSD, and public limited liability companies will have to follow specific steps in accordance with the conditions of the chosen depository to register the dematerialised shares. It should be noted that the Amendments require public limited liability companies to notify the Commercial Register about the CSD where the shares are deposited, and this information will be publicly available. This ensures that third parties are informed about the CSD where information on all shareholders of a public limited liability company is available. Under the Amendments, information on the holders of a company’s dematerialised shares will be available to the company and the competent authorities upon request from the CSD. Shareholders, on the other hand, will be able to obtain information on other holders of dematerialised shares from the company.
• Shareholders holding dematerialised shares amounting to more than 5% of the total amount of the company’s shares will be required to inform the company about this fact. The obligation also applies to each subsequent acquisition of shares in increments of 5%. Until the shareholder notifies the company of the increase in participation, it will not be entitled to exercise voting rights for the acquired shares. The obligation to inform the company also applies to a decrease in participation by 5%. The company, upon receipt of information from a shareholder regarding an increase or decrease in participation, is obliged to further inform the Commercial Register thereof. This requirement does not apply to companies whose shares are listed on a regulated market.

Public limited liability companies that will have dematerialised shares must submit an application to the Commercial Register by 30 June 2024, regarding the CSD where the shares are deposited, accompanied by the CSD’s certificate of share registration. It should be noted that as from 1 January 2024, any changes to the articles of association or share capital will automatically trigger the registration of the CSD in the Commercial Register.

Serious Consequences for Non-compliance with Legal Requirements

If a public limited liability company fails to submit the updated articles of association, shareholder register, or information about the CSD where the company’s shares are deposited to the Commercial Register by June 30, 2024, the Commercial Register has the authority to decide on the termination of the company’s activities, and the company may be subject to, inter alia, simplified liquidation.

Don’t Delay Changes Until the Last Minute!

Considering the consequences of non-compliance with the requirements imposed by the Amendments, we urge public limited liability companies not to postpone the preparation of articles of association and the organization of share record-keeping in accordance with the requirements of the Amendments. It’s essential to remember that both document preparation and convening shareholder meetings to decide on article of association amendments can take a considerable amount of time, especially if foreign shareholders are involved and there is a necessity to sign documents abroad in front of a public notary. For companies opting to issue dematerialized shares, additional time must be calculated for concluding a cooperation agreement with the chosen CSD, fulfilling other depository requirements, and obtaining the necessary certifications to be submitted to the Commercial Register.

Significant Changes in the Regulation of Commercial Companies’ Operations Adopted Last Summer

In the summer of the previous year (on 1 June and 1 July 2023), amendments to the Commercial Law were adopted which, among other things, provide for changes in dividend distribution and the reporting procedure for ultimate beneficial owners (UBOs), requirements for the payment of share capital, for officials and formation of the shareholder register, the competence of the Supervisory Board, as well as in requirements for the indication of the addresses of natural persons in documents to be submitted to the Commercial Register of the Republic of Latvia (Commercial Register). Below is a more detailed overview of each of the above changes.

Read about changes in the Commercial Law related to the categorization of share types and their accounting within public limited liability companies here.

Dividend Distribution

Dividends of companies can also be distributed disproportionately to the shares held by the shareholders if such right is provided for in the articles of association.

Until now, disproportionate dividend distribution could only be carried out by those companies that had introduced share categories in their articles of association; disproportionate dividends could only be distributed among owners of different share categories.

According to the new procedure, it is only necessary to specify in the articles of association that dividends among shareholders can be distributed disproportionately. It is no longer necessary to introduce share categories in the articles of association to exercise such rights.

Rights of Companies to Request Information on the Existence or Non-Existence of UBOs

The Commercial Law establishes the right of the board of a company to request from a shareholder information and documentation on the existence or non-existence of an UBO. Upon receipt of such a request, the shareholder is obliged to provide the requested information and documentation to the company within two weeks. If the shareholder fails to comply with the request within the aforementioned period, they lose voting rights in the company as well as the right to receive dividends. The shareholder shall regain this right as soon as they fulfil their obligation.

To avoid misuse of these rights by the board of the company, the shareholder will have the possibility to submit information and documents confirming the existence or non-existence of the UBO directly to the Commercial Register.

If the shareholder fails to submit the information requested by the company to the management board or the Commercial Register, the court may exclude the shareholder from the company on the basis of the company’s request. In such a case, the shares are transferred to the company, which is obliged to pay the shareholder the amount of his contribution in the company.

Requirements for the Payment of Share Capital

The Commercial Register will only register the fully paid-up share capital; subscribed share capital will no longer be registered.

When establishing a company, the share capital must be fully paid up by the time the application for the registration of the company is submitted to the Commercial Register. Until now, a company could have been established without paying the entire share capital.

When increasing the share capital, the application for registration of changes in the Commercial Register must be submitted only after the deadline for the payment of shares has expired (not exceeding 6 months) or when all shareholders have paid all the newly issued shares. Until now, it was possible to increase the share capital without paying the full amount of the share capital until the initial application for the share capital increase was submitted to the Commercial Register.

The share capital of a company can now be transferred not only to an account opened with a credit institution but also to an account opened with an electronic money or payment institution. The share capital can be paid in this way, not only when establishing a company, but also in the case of a share capital increase.

The requirement to open an account for the transfer of share capital will now also apply to a limited liability company (SIA) with no minimum capital requirement. When establishing a no minimum capital requirement SIA, the Commercial Register will have to be provided with a document from the payment institution certifying the payment of the share capital.

Restrictions on Positions

If an individual is subject to business restrictions in another EU Member State, the Republic of Iceland, the Kingdom of Norway or the Principality of Liechtenstein, such a person cannot hold a position in a commercial company in Latvia (e.g., as a member of the management board or the supervisory board).

Information on whether a person is subject to such restrictions will be verified by the Commercial Register in the information system available to it. The receipt of information on the existence of such restrictions for persons who are already registered as officials in the enterprise register will not be a basis for deletion of information from the enterprise register.

Formation of Shareholders’ Register

In the shareholders’ register, the following information must now be provided from now on:

• the email address of the shareholder, if the shareholder has requested its use for communication,
• categories of shares, if applicable; and
• the number of votes arising from the shares.

Henceforth, it will no longer be necessary to indicate the date of share payment in the shareholders’ register.

Competence of the Supervisory Board

With amendments to the Commercial Law, it is stipulated that the Supervisory Board, as a company’s supervisory body, represents the interests of the society in broader sense, not just those of shareholders.

Additionally, the Supervisory Board is assigned the following tasks:

• to approve the general operating principles of the company and its development and financial objectives, as well as to monitor their implementation,
• oversee the operation of the internal control and risk management system.

Disclosure of Addresses for Natural Persons

For natural persons (e.g. shareholders, members of the management board, members of the supervisory board, etc.), in documents specified by the Commercial Law (e.g., memorandum of association, shareholders‘ register, etc.), it is no longer required to provide the address of the place of residence. Instead, the address where the person can be reached should be indicated.

II edition of the International Employment Lawyer’s Guide to Whistleblowing

The second edition examines what constitutes a protective disclosure, the scope of regulations across 23 countries, and the steps businesses must take to ensure compliance with them.

In this new age of accountability, organisations around the globe are having to navigate a patchwork of new laws designed to protect those who expose corporate misconduct.

Among the contributors are Irina Kostina, associate partner and Ints Skaldis, senior associate (Ellex in Latvia) and associate Kamilė Skrupskytė, (Ellex in Lithuania).

Available here.

Overview on liability caps in public contracts across EU Member States | Lex Mundi

The newly published regulatory scan covers inquiries relating to liability caps in public contracts across the EU member states. It has been prepared by Zepos & Yannopoulos – a long-standing member of Lex Mundi, the world’s leading network of independent law firms, with members in over 125 countries.

This report demonstrates the global reach and local expertise of Lex Mundi. Founded in 1989, over its three decades Lex Mundi has evolved far beyond being a law firm network with a superior agglomeration of top-tier, indigenous law firms in over 125 countries.

The Latvian and Lithuanian chapters were prepared by Maris Brizgo and Sarunas Neniskis, associate partners at Ellex in Latvia and Lithuania.

More information

EU Whistleblowing Directive: Latvia

^{1. Has the EU Whistleblowing Directive been implemented in your country? If not: At what stage is the legislative process and when do you expect the national legislation to enter into force?}

^{Yes. The EU Whistleblowing Directive was implemented in Latvia by the new Whistleblowing Act, which was adopted on 20 January 2022 and came into legal effect on 4 February 2022. The new Whistleblowing Act replaced the previous one, which was adopted on 11 November 2018 and was effective between 1 May 2019 and 3 February 2022. Therefore, the whistleblowing as a mechanism was known in Latvia before the official implementation of the EU Whistleblowing Directive.}

^{2. Will your national legislation apply to businesses with fewer than 50 employees?}

^{Article 5(1) of the Whistleblowing Act provides that only businesses that have 50 or more employees are obliged to establish an internal reporting channel. Businesses which employ fewer than 50 employees can establish internal reporting channels at their own discretion or implement a shared group reporting channel. If businesses with fewer than 50 employees implement an internal reporting channel at their own discretion, the Whistleblowing Act is applied to reporting, handling of reports and protection of the whistleblowers.}

^{3. Are there any additional reporting matters (other than the ones included in the EU Whistleblowing Directive)?}

^{Article 3 of the Whistleblowing Act describes reporting matters more broadly, allowing to report any violations related to the public interest.}

^{In addition to the reporting matters covered in the EU Whistleblowing Directive, the Whistleblowing Act highlights other reporting matters, including:}

^{1) inaction, negligence, abuse of office or other unlawful acts of public officials;}

^{2) corruption, violations of the rules on financing political organizations (parties) and their associations and restrictions on pre-election campaigning;}

^{3) embezzlement of public funds or property;}

^{4) tax evasion;}

^{5) threat to building / construction safety;}

^{6) threat to occupational safety;}

^{7) threat to public order;}

^{8) violations of human rights.}

^{The list of additional reporting matters is non-exhaustive. The Whistleblowing Act is prepared in such way that individuals can report any cases related to public interest. The persons responsible for reviewing the reports determine if the reported matter is of public interest and falls within the substantive scope of the Whistleblowing Act.}

^{4. Can a grievance/an interpersonal grievance constitute a reporting matter?}

^{No. Pursuant to Article 3(3)(3) of the Whistleblowing Act, reporting on personal interests is not considered whistle-blowing pursuant to the Whistleblowing Act. Also, whistleblower’s reports are individual; therefore, collective grievances do not constitute reporting matters.}

^{Individual and collective grievances are considered in accordance with the special provisions of the Civil Act, the Labour Act and the Labour Disputes’ Act and are subject to different proceedings.}

^{5. What internal whistleblowing channels will companies need to put in place in your country?}

^{The Whistleblowing Act does not provide that specific channels must be used in companies. Thus, companies have a discretion to decide on types of internal whistleblowing channels which suit them the best.}

^{Companies can choose one or more different options for internal reporting, for example:}

^{1) A special separate e-mail address for filing whistleblowing reports;}

^{2) An e-mail address of the person, who is responsible for handling whistleblowing reports;}

^{3) Online or web-based individual reporting channels;}

^{4) Special mailbox at the premises of the undertaking;}

^{5) Oral reporting / reporting in presence of the person, who is responsible for handling whistleblowing reports in the undertaking.}

^{To ensure that internal reporting is efficient, companies are strongly advised to prepare and implement internal whistleblowing policies, which detail how reports are filed, processed and reviewed at the company. It must be noted that a failure to establish efficient internal reporting channels and whistleblowing policy might result in direct whistleblowers’ reporting to competent authorities or in exceptional cases – public reporting.}

^{6. Must the internal reporting channel permit oral reporting?}

^{It is not mandatory to provide an oral reporting option. If the oral reporting is allowed, internal procedures must be established, providing how oral reports are processed or formed for further review (e.g., the responsible person in the company prepares a report in writing based on an oral report, which in any case must be subsequently signed by the whistleblower.}

^{7. Can the internal reporting channel be outsourced?}

^{Pursuant to Article 5(1) of the Whistleblowing Act, private entities can use the services of third parties to ensure operation of the internal whistleblowing system and handling of whistleblowers’ reports. Outsourcing can be ensured by law offices, auditors or other reliable external parties.}

^{State / municipal authorities and companies are not allowed to use outsourcing for internal reporting.}

^{8. Is there any statutory obligation to provide whistleblowers with any information about the internal and/or external reporting channels? If so, must this information be given in local language?}

^{Article 5(4) of the Whistleblowing Act provides that all persons shall be informed of the internal whistleblowing system and internal reporting channels at the start of their traineeship, employment, service or other professional relationship. Also, the company must ensure that the information about the whistleblowing system is easily accessible and available at the place of work.}

^{There is no statutory obligation to inform whistleblowers about external reporting channels.}

^{Since the internal whistleblowing channels are related to public interest issues, then information must be given in local (Latvian) language pursuant to requirements of the Official Language Act. Also, for foreign employees, information about the internal reporting channels must be available in the language they understand.}

^{9. Is there a mandatory procedure that companies will need to follow once a report is filed?}

^{Generally, the procedure for review and investigation of the reports is left at the companies’ discretion. However, the Whistleblowing Act provides that a company must observe some statutory procedures and deadlines, when handling whistleblowing reports.}

^{Pursuant to Article 7(2) of the Whistleblowing Act, companies must provide notification of the receipt of the report immediately, but no later than in 7 days’ time after the receipt of the report. Also, notification of acknowledgement must be provided to the whistleblower in 3 days’ time after decision to acknowledge the report as a whistleblower’s report is adopted.}

^{Article 11(1) of the Whistleblowing Act provides that whistleblower’s data must be pseudonymized immediately after the report is qualified as whistleblower’s report. Whistleblower’s report and documents related to investigation are confidential and with limited access. Illegal disclosures may result in criminal liability.}

^{Article 7(7) of the Whistleblowing Act provides that a company must inform the whistleblower about the progress of investigation within 2 months after the report was qualified as the whistleblower’s report.}

^{After the investigation is complete, the company must inform the whistleblower about the facts established, decisions adopted, and measures taken to comply with Article 7(8) of the Whistleblowing Act.}

^{10. What are the works council’s or other representative bodies’ participation rights in respect of whistleblowing systems?}

^{Pursuant to Article 9 of the Whistleblowing Act, trade unions as employee representative bodies can provide support, including counselling, to whistleblowers and persons wishing to report to promote whistleblowing and whistleblower protection.}

^{Similarly, trade unions can provide support to employees in accordance with their bylaws, where persons have reported or wish to report concerns related to whistleblowing.}

^{Trade unions may also, without a specific authorization, apply to an authority (body) or a court on behalf of a whistleblower they represent in accordance with their statutes, and defend the rights and legitimate interests of the whistleblower.}

^{11. Which categories of persons can be whistleblowers in your country?}

^{Pursuant to Article 1(1)(7) of the Whistleblowing Act, a whistleblower may be a natural person who provides information about an alleged violation concerning public interest, if the information was obtained during the fulfilment of work duties (namely, not only performance of employment work duties, but also in case of work duties of the service providers), while establishing of legal relationship related to the fulfilment of work duties or during practice (internship).}

^{Therefore, whistleblowers can only be natural persons. The definition is broad and covers employees, candidates, trainees, interns, self-employed persons, clients, business partners, etc.}

^{12. Can reports be anonymous?}

^{Anonymous reports fall outside of the legal framework governing whistleblowing in Latvia. Notwithstanding the foregoing, companies have a discretion to investigate anonymous reports at their own initiative. In case an anonymous whistleblower is subsequently identified as the whistleblower, he or she is a subject to the statutory protection guarantees, including protection against adverse consequences.}

^{Latvia decided that anonymous reporting may result in excessive amounts of groundless reports, and that protection of anonymous whistleblowers against potential retaliation cannot be ensured.}

^{13. What protection will be afforded to whistleblowers under your national legislation? Does that protection still exist if the disclosure is determined to be without merit or if the report was maliciously made?}

^{The Whistleblowing Act provides that a whistleblower is afforded protection of identity, protection against adverse consequences resulting from whistleblowing, exemption from legal liability.}

^{Additional protective measures that facilitate the rights of the whistleblower include:}

^{– legal aid provided by the Government;}

^{– exemption from the payment of court costs in civil proceedings and from the payment of a state fee in administrative proceedings before a court;}

^{– interim relief in civil proceedings and in administrative proceedings before the courts;}

^{– appropriate compensation for damages for loss or personal injury, including moral injury;}

^{– advice on the protection of their rights;}

^{– exemption from the obligation to comply with the out-of-court procedure in administrative proceedings.}

^{If the report is not qualified as the whistleblower’s report, then the whistleblower forfeits the protection afforded by the Whistleblowing Act. Administrative liability might be imposed on persons who intentionally file malicious reports.}

^{14. How much compensation can be awarded to a whistleblower if they are penalised for having made a report?}

^{There are no statutory limits or quotas for compensations if whistleblowers are penalized. Since the whistleblowing is still quite new instrument in Latvia, there is no extensive or well-established case law on specific or approximate range for compensation.}

^{If any material damage is caused, it is calculated and compensated pursuant to the Civil Act and the Civil Procedure Act in court proceedings. A compensation for moral suffering is awarded in case of illegal conduct against the whistleblower. The amount of the moral compensation is determined by the court in each individual case.}

^{15. How should the employer deal with persons named in the report?}

^{Reports are confidential and shall be treated as such. Information in the whistleblower’s report and the related investigation thereof is limited access information.}

^{The Whistleblowing Act does not provide special provisions for protection of witnesses or other persons named in the report, e.g. offender, clients, colleagues, family members, etc. At the same time, it is forbidden to disclose information revealing the identity of the natural or legal person that is reported by the whistleblower.}

^{Disclosures may be allowed only to the person responsible for investigation based on the whistleblower’s report, or persons, who work for the investigation initiated. In exceptional cases, disclosure may be allowed, if it is necessary for the protection of the whistleblower, his /her relative or associated person.}

^{If, after finalizing the investigation, the person named in the whistleblower’s report shall be held accountable, the company (employer) can apply disciplinary measures, terminate an employment contract, inform the police or other responsible authorities accordingly.}

^{It must be noted that any illegal disclosures related to persons or information covered by the report, may result in criminal liability.}

^{16. Does your national whistleblowing legislation create offences for non-compliance and what penalties do such offences attract?}

^{An administrative fine is imposed for causing adverse consequences to the whistleblower, his relatives or related persons. Administrative fines are between EUR 30 and EUR 700 for a natural person, and from EUR 70 to EUR 14,000 for a legal entity.}

^{An administrative fine in the amount between EUR 30 and EUR 700 can be imposed for knowingly making false statements in whistleblower’s reports (malicious reporting).}

^{An administrative fine in the amount between EUR 15 and EUR 350 for natural persons or EUR 35 – EUR 7000 for legal entities may be imposed for obstructing or attempting to obstruct whistleblowing, including obstructing the submission or consideration of a whistleblower’s report.}

^{Administrative fines are imposed by the State Labour Inspectorate.}

^{Articles 200, 329 and 330 of the Criminal Act provide that a criminal liability may be imposed for breach of the duty of maintaining the confidentiality of the identity of reporting persons.}

^{Pursuant to Article 731 of the Civil Procedure Act, a procedural fine may be applied for bringing vexatious proceedings against whistleblowers, their family members, related parties or colleagues in relation to reporting.}

^{Article 298 of the Criminal Act provides that criminal liability may be imposed if retaliation results in filing malicious report with the intention to initiate criminal proceedings against whistleblower, family members, related parties in relation to reporting.}

^{17. Are there any other practical steps that companies can take to prepare for the new whistleblowing regime?}

^{Since the whistleblowing regime is in effect in Latvia for 3 years, most of the companies subject to the Whistleblowing Act have already implemented measures appropriate to ensure efficiency. Must probably some minor amendments were required to the internal policies after the Whistleblowing Act came into legal force.}

^{Practical steps that companies can take range between preparing clear and efficient internal whistleblowing policies, establishing internal reporting channels and designating responsible persons, as well as properly informing the employees, other persons to whom the internal whistleblowers system could be applicable about this system and its principles.}

The latest developments in employment relations in Latvia

_{Amendments to the Commercial Act}

_{On 1 June 2023, amendments to the Commercial Act came into effect that require a greater involvement of employees in a cross-border reorganisation of companies. The amendments allow for an opportunity for employee representatives (or employees themselves) to review and provide their opinion on a reorganisation agreement (draft) as well as the cross-border prospectus.}

_{The reorganisation agreement}¹ _{shall describe the consequences of the reorganisation for employees. An invitation to employee representatives or employees to provide their opinion on the reorganisation agreement (draft) must be attached to the application to the Register of Enterprises on commencement of the reorganisation. The invitation should state the deadline and venue for provisions of the opinion – no later than five business days before the shareholders pass a decision on the reorganisation.}

_{Availability of the reorganisation agreement must be ensured at least one month before the contemplated shareholder meeting regarding the reorganisation. If the opinion of employee representatives or employees on the agreement is received the management board shall promptly communicate it to the shareholders of the company ensuring a possibility for them to review it.}

_{The cross-border prospectus shall include a separate section for employees specifying the impact of the reorganisation on the employment relationship. It shall also include information about measures of protection of employment and crucial changes in the employment conditions, inter alia, change of the place where the work is performed and the registered address of the company. The employee representatives or employees must be provided with continuous free electronic access to the prospectus for at least six weeks until the date of the meeting of shareholders with the reorganisation on its agenda, and until the effective date of the reorganisation.}

_{At least two weeks before the day when the meeting of shareholders is scheduled to pass a decision on the reorganisation, the employee representatives or employees may provide an opinion in writing about the information contained in the prospectus. The management board shall promptly ensure availability of such opinion for the shareholders.}

_{Amendments are}² _{to introduce the requirements of Directive. 2019/2121. The amendment are available here.}

_{Amendments to the Immigration Act}

_{On 1 July 2023, amendments to the Immigration Act related to transposition of the requirements of EU Directives came into effect. The EU Blue Card will now be issued for a period of up to two years instead of the previous five years.}

_{Holders of the EU Blue Card will have a right to enter Latvia not only based on employee secondment but also to carry out various economic activities for the benefit of an employer and in the employer’s interests, without the need to obtain a separate right to employment.}

_{Holders of the European Blue Card will have the possibility ensured to return back to Latvia, if the validity period of the European Blue Card has expired while staying in another EU Member State. The European Blue Cards issued by all EU Member States (not only the Schengen area countries) will be a sufficient document for crossing borders.}

_{From 1 July 2023, applicants for the European Blue Card entering from other EU Member States will subsequently have a right to commence employment within 30 days after a submission of the application for the European Blue Card in the Republic of Latvia. Furthermore, the amendments stipulate that an extension of the period for decision-making regarding issuance of the European Blue Card will not exceed three months from the date of receipt of the application. Until now, the general decision-making periods were applied as established in the Administrative Procedure Act; therefore, allowing for the possibility to extend the decision-making period up to four months or one year.}

_{Part of the amendments are aimed at protection of the holders of the European Blue Card in case of incapacity to work, unemployment or violations by an employer ensuring that in such cases the European Blue Card is not annulled right away and the right to seek a new job and stay in the Republic of Latvia is ensured.}

_{These amendments are aimed at introducing the requirements of Directive No 2021/1883/EU. The amendments are available here.}

_{Differences in Status for Members of the Management Board and Employees}

_{In many countries, not only are members of the management board (directors) registered with the commercial registry offices, but also certain officials who ensure running of the company (such as Chief Executive Officer, Chief Financial Officer, Managing Director etc.) . Therefore, these officials have a special legal status in comparison with employees. The legal framework in Latvia does not provide for such a registration of officials. The officials do not have an autonomous legal status stipulated by the law or any special rights and obligations.}

_{In Latvia, the routine management of a business company (private limited (SIA) or public limited (AS) company) is ensured by a management board (board of directors), whereas monitoring of the performance of the management board is entrusted to a supervisory board (in case of a SIA – a supervisory board is not required). Any other person who has a position with the company – managing director, director (CEO) – are employees, unless such person is appointed to the management board. It is not unusual that this nuance goes unnoticed or is disregarded by the companies which have parent companies in a foreign country and, according to the rules of procedure of such parent companies, the officials are to be registered with commercial registry offices. Therefore, we would like to draw your attention to the most crucial differences in the status of a board member and an employee (managing director, chief executive officer etc.).}

_{Case Law of the Supreme Court}

_{The case law of the Supreme Court provides crucial interpretations of issues concerning employment relationships. We would like to draw your attention to two judgments which resolve issues that are often ambiguous or insufficiently analysed in the case law.}

_{The non-competition obligation after termination of the employment relationship and the confirmation of previously agreed losses (judgment of the Department of Civil Cases of the Senate of the Supreme Court of 30 March 2023 in case No SKC – 3/2023)}

_{The dispute is between a former employer and a former employee about compliance with the concluded noncompetition and confidentiality agreement. The agreement prescribed that in case of a breach of the agreement the employee shall pay damages to the employee calculating the damages incurred according to a preestablished formula – the monthly compensation set out in the noncompetition agreement multiplied by the number of remaining months between the time when the breach was established until the end of the non-competition period. Namely, the agreement provided for a pre-established mechanism for estimation of liquidated damages. Since liquidated damages are allowed in many jurisdictions, it is not clear for clients whether such can be prescribed by contracts, including those which govern the employment relationship.}

_{To this end the Supreme Court has explained that contractual relationships are subject to the requirement of the law to establish not only the breach of the contract itself but also existence of the damages (losses), and a causal relationship between them and unlawful actions of the breaching party (the preconditions or grounds for indemnification of losses). Consequently, the Latvian law does not allow for the institution of liquidated damages. Parties cannot agree that in case of a breach of a contract a specific amount of damages is to be paid without a duty to prove the grounds for indemnification of losses (damages) as set out in the Civil Act.}

_{Therefore, contracts governed by the Latvian law cannot provide for liquidated damages. If the parties wish to contract an amount of funds payable for a default on obligations which is not limited to the amount of damages resulting from the default on the contract, such parties can agree on a contractual penalty. In the context of employment, one should keep in mind that the contractual penalty cannot be contracted during the employment relationship (disciplinary sanctions or an option of terminating the employment are intended for that). The contractual penalty can be stipulated only with regard to obligations that continue after the end of the employment relationship – such as noncompetition or confidentiality obligation.}

_{Right of a person who held a position of both employee and a member of the management concurrently to a vacation (judgment of the Department of Civil Cases of the Senate of the Supreme Court of 22 March 2023 in case No SKC- 86/2023)}

_{Regarding the difference in status for employees and members of the management board, it is worthwhile to mention a recent judgment of the Supreme Court where the issue of different rights of employees and board members to a vacation is analysed. The Supreme Court explained that in accordance with paragraph five of Article 149 of the Labour Act the right to receive compensation for unused annual leave is attributable to employees, and not members of the management board. Consequently, a member of the management board may not refer to a limitation of rights (to use the annual leave) where he or she himself can arrange for the organisation of the time for performance of duties and the time off. The status of a management board member precludes the need to inform oneself on their rights. According to the explanation given by the Supreme Court, members of the management board should not have unused vacations accrued at all, because they are assumed to know themselves how such should be used (see also the judgment of the Supreme Court in case No SKC–437/2008 regarding the right of the member of the management board to a time off (paid time off / PTO)).}

_{The foregoing does not deprive the company and a member of the management board to agree that the board member receives compensation for unused annual leave (if due to objective reasons it could not be used) upon termination of the legal relationship between them. Such agreements are used rather seldom though.}

_{Worth noting is a comment of the Supreme Court about a situation where one person holds a status of a member of the management board and an employee simultaneously. It notes that it should be evaluated whether such person is really in a relationship of subordination to have the status of the employee. The Supreme Court explained that a simultaneous status of a member of the management board and a shareholder, if the latter holds at least half of the shares, precludes any reasonable doubt about the person having a relationship of subordination. This means that, even though formally the person held the position of an employee too, such person cannot have the status of employee attributed to him or her.}

¹ _{Pursuant to Articles 376 and 338 of the Commercial Act.}

² _{These amendments shall have no impact on the rights and obligations arising out of Articles 117-121 governing the transfer of undertaking and applicable provisions of employee participation.}

EU introduced revised rules for payment services and will reshape the existing payment market

On 28 June the European Commission introduced new regulatory proposals for payment services in order to bring payments sector further into the digital age. Therefore, the PSD2 shall be replaced by the following regulations:

• Directive on Payment Services and Electronic Money Services (PSD3) which shall focus on the authorisation and supervision of the payment institutions (PIs) and e-money issuers EMIs);
• Payment Services Regulation (PSR) which shall cover the conduct of payment services with the focus to improve the provisions of open banking type of services.

PSD3

The PSD3 has largely taken over the regulation in the PSD2 in regard to the authorisaton and supervision. However, the PSD3 shall bring the following most notable changes:

• EMIs within the scope of PSD3. The PSD3 shall embed the current E-Money Directive (Directive 2009/110/EC) bringing the EMIs also under the same regulatory umbrella with the PIs. EMIs are referred to in the PSD3 as PIs if no specific exception is done to EMIs.
• New or amended definitions. The PSD3 is still in the proposal format due to which it shall most likely be subject to number of changes, however, it can be noted that the PSD3 introduces several changes to the existing definitions, e.g., “payment account”, “payment initiation service”, “account information service”, and some new ones, e.g., “technical service provider”.
• Scope of payment services. Under the PSD3 the scope of regulated payment services has remained largely the same though instead of eight services under PSD2, the PSD3 lists seven services.
  • One of the main changes to the scope of payment services is that the service of enabling cash to be placed or withdrawn from a payment account is dissociated from the activity of servicing the payment account as the providers of cash placement or withdrawal services may not service payment accounts. At the same time, the services of enabling cash to be placed and to be withdrawn are under PSD3 in the same clause (PSD 3 Annex I clause 1).
  • The services of execution of payment transactions (PSD2 Annex I clause 3) and execution of payment transactions where the funds are covered by a credit line (PSD2 Annex I clause 4) are listed together under PSD3.
  • The services of issuing payment instruments and acquiring payment transactions which were listed together under PSD2 (clause 5 of the Annex I) are now separated under the PSD3.

It is vague under the PSD3 what would be consequences to the existing licenses where the PI has a right to provide one service which under PSD3 is under same point with a one PI has no previous license.

• Additional requirements to the authorisation. The PSD3 shall foresee that the undertakings who submit the authorisation application should also submit most importantly the following information and documents compared to PSD2:

• • a description that the applicant’s governance arrangements and internal control mechanisms are in compliance with Regulation (EU) 2022/2554 (DORA) (Articles 6 and 7);
  • a description of the procedure in place to monitor, handle and follow up a security incident and security related customer complaints in accordance with Chapter III of the DORA;
  • a description of the business continuity plan in accordance with Article 11 (6) of the DORA;
  • a security policy, including risk assessment related to the provision of payment and electronic money services, a description of security control and mitigation measures to adequately protect payment service users against the risks identified, etc;
  • more specific overview of structure (agents, outsourcing), operating as a PI;
  • winding-up plan.

• Requirements to initial capital. Adjusted requirements to the initial capital of the PIs and EMIs:

• • money remittance (PSD3 Annex I clause 5) EUR 25 000;
  • payment initiation service (PSD3 Annex I clause 6) EUR 50 000;
  • other payment services according to PSD3 Annex I, except account information service, EUR 150 000;
  • electronic money services (PSD 3 Annex II) EUR 400 000.

Account information service providers (AISPs) are not subject to initial capital requirements.

• Requirements to own funds. In addition to the existing own funds calculation methods the PSD3 foresees additional own funds calculation methods for PIs.

• Registration of the AISPs. Natural or legal persons intending to provide only account information service are not subject to the authorisation under the PSD3 but for registration. Requirements to their registration are less complex than for authorisation of the Pis.
• Professional indemnity insurance. The PSD3 foresees that due to the difficulties the AISPs and payment initiation service providers (PISPs) have faced with the professional indemnity insurance they may choose to hold initial capital of EUR 50 000 as an alternative during the licensing / registration stage. The text of the PSD3 is still vague in this matter as the text in the recitals and main text does not coincide.
• Main part of business. PSD3 clarifies that the PIs may carry out in its home state only part of its activity and not a majority, thereby contributing to cross-border provision of services.
• The existing PIs and EMIs already operating must undergo a reapplication process. The PIs and EMIs currently operating must reapply for a license within 24 months of PSD3 coming into force. If the PI / EMI demonstrates its compliance with the new requirements the authorisation shall be granted. The existing licenses are valid for 30 months as of PSD3 entering into force if the aforementioned application has been made.
• Payment services exemption reapplication. Natural or legal persons benefitting from any of the exemptions under the PSD2 (Article 32) must obtain a new exemption under the PSD3.

The PIs and EMIs should analyse the impact of the PSD3 on their activities and be prepared for the reapplication process. The same applies to those natural and legal persons operating under exemptions.

PSR

PSR has taken over the regulation in PSD3. However, the PSR has clarified and extended the current regulation under PSD2. Also, considering that the PSR is on a regulation level it is directly applicable to the service providers. We have listed here only the most notable changes:

• Update of “commercial agent exclusion” and other exclusions. PSR has updated the definition of commercial agent exclusion introducing limitations such as ‘the commercial agent should be a self-employed intermediary within the meaning of Directive 86/653/EEC’ and ‘giving the payee or payer a real margin to negotiate with the commercial agent or conclude the sale or purchase of goods and services’. This will most likely limit the possibilities where the market places can rely on the specific exclusion.

The PSR also introduces some other clarifications on exclusions, such as an   exclusion for technical service providers (TSPs), etc.

• Changes to the access to payment systems and accounts. The PSR extends the access to payment system requirement to payment system designated under the EU Settlement Finality Directive. The PSR shall further require that where a credit institution is required to motivate its decision to either refuse to open or to close a payment account then such decision can not be generic in the nature but must be specific to the risks posed by the activity or planned activity of the PI or its agents or distributors. Thus, it expands the requirement to motivate the decision to both opening and closing the payment accounts as well as PIs still undergoing licensing.

• Changes to open banking. The PSR introduces several new requirements regarding the open banking which should allow AISPs and PISPs to provide their services more easily.For example, the PSR foresees that the account servicing payment service providers (ASPSP) offering payment accounts that are accessible online are now required to provide at least one dedicated interface (API) and there is no longer a choice between dedicated interface and modified customer interface (with exceptions). ASPSPs are also required to disclose detailed technical information to AISPs and PISPs and should inform AISPs and PISPs of changes to their dedicated interface immediately and not less than 3 months before the change. ASPSPs are required to make available testing facility, disclose to the public information about the availability and performance of their dedicated interface, etc.
• Changes to Strong Customer Authentication (SCA). The PSR introduces several new requirements regarding the SCA.For example, AISPs need to perform SCA of the payment service user every 180 days after the first access. Also, the PIs should establish an outsourcing agreement with the TSPs if the TSP offers SCA.
• New requirements to tackle fraud. The PSR requires the PIs to share data on fraud with other PIs, report on fraud to the competent authorities more heavily, inform the payment service users and employees on forms and trends of fraud, etc.

The natural and legal persons should analyse whether their activities still fall within any of the exclusions, especially under the commercial agent exclusion as this has been unclear for a long time. Also, the existing PIs should analyse the impact of the changes the PSR introduces and prepare plans and forecasts to implement the changes in a timely manner.

MiCA Regulation – Stricter Terms in the Markets in Crypto assets

New Regulation (EU) 2023/1114 of the European Parliament and of the Council for markets in crypto assets (so-called MiCA Regulation) is a crucial novelty to achieve a common legal framework in the growing market of crypto assets in the EU countries. The regulation provides for a protection in such crucial areas as consumer rights, stability of the crypto – market, as well as safe and lawful investments, concurrently preventing exposure to such risks as fraud and incompetent provision of services. On 20 April 2023 the MiCA Regulation was supported by the European Parliament, whereas the Council of the European Union gave their approval on 16 May 2023. The regulation is expected to come into force from June or July 2024 for on the issuance of asset-referenced tokens and e-money tokens whereas the rest of provisions are expected to apply around December or January 2025.

As from the MiCA Regulation coming into effect, laws and regulations are to be adjusted in Latvia as well for them to reflect the obligations set out in the regulation, including registration and licensing of the providers of crypto asset services. The Financial Instrument Market Law and others will have to be amended.

The MiCA Regulation will not overall with the AML (anti-money laundering) law as an agreement was reached on 29 June 2022 on the crypto assets being subject to the rules of money transfers either. Nevertheless, the MiCA Regulation states that the European Banking Authority (EBA) is under an obligation to maintain a public register of ineligible nonconformant crypto asset service providers.

Fundamental Objectives Set by the MiCA Regulation

• Legal certainty and harmonization. The MiCA Regulation will ensure a stable legal framework with respect to all crypto assets which are not regulated by the current legal framework.
• Legal framework for innovations. The MiCA Regulation will facilitate a fair competition and development of innovations in the crypto asset market, well as a more widespread use of the distributed ledger technology (DLT).
• Protection of consumers and investors. The MiCA Regulation will facilitate trust of consumers in the crypto asset market concurrently establishing a higher degree of responsibility for providers of crypto asset services. It is contemplated to facilitate the development of crypto asset market in this way.
• Market integrity, financial stability, and smooth operation of payment systems. The MiCA Regulation will ensure protection measures to prevent financial instability in the crypto asset market, inter alia, regarding asset referenced tokens, as well as will supplement the current law governing prevention of the flow of money from crime and funding of terrorism, where the cryptocurrency is used.

The Regulation sets the requirement for licensing regarding the service providers and issuers of asset referenced tokens and other crypto assets as the main criteria. Furthermore, the Regulation establishes a duty to introduce the so-called White Papers of crypto assets and carry out other duties for transparency and provision of information with respect to offers of crypto assets and access to the trading in crypto assets. Furthermore, the Regulation is set to prevent risks related to abuse or incompetent use of the crypto asset market.

The MiCA Regulation categorizes the crypto assets into three categories.

According to the Regulation, the crypto assets are to be categorized into asset referenced tokens – these are tokens with goal to maintain a stable value referring to any other value, right or combination thereof, including one or more of the official currencies. The second category is e-money tokens – crypto assets which allow to retain a stable value based on the value of the currency of a single country. And other crypto assets – such crypto assets which are not asset referenced tokens or e-money tokens.

The MiCA Regulation will apply to mined tokens. Furthermore, the MiCA Regulation stipulates that the asset referenced tokens will be subject to a stricter supervision establishing an obligation to secure each token by the respective value in the currency.

Crypto asset service providers

For the Regulation, the crypto asset service provider is any person who performs:

• Holding and managing crypto assets for third parties. This is the holding or control of crypto-assets or means of access to them on behalf of third parties in the form of private cryptographic keys.
• Maintenance of a trading platform for crypto assets. It is about operating of platforms where several third-party interests facilitate the conclusion of a contract either by exchanging one crypto asset for another or a crypto asset for fiat currency.
• Exchange of crypto assets for fiat currency, which is a legal tender. This is the conclusion of purchase or sale agreements with third parties on crypto assets against fiat currency using equity.
• Exchange of crypto assets for other crypto assets. Entering into purchase or sale agreements with third parties on crypto assets against other crypto assets using equity.
• Execution of orders related to crypto assets on behalf of third parties. It is about concluding contracts for the purchase or sale of one or more crypto assets, or for subscribing to one or more crypto assets on behalf of third parties.
• Placement of crypto assets. Sale of newly issued or already issued crypto assets that are not admitted to trading on a trading platform to specific purchasers that do not involve an offer to the public or an offer to existing holders of the issuer’s crypto assets.
• Reception and transmission of orders related to crypto assets on behalf of third parties. This means accepting an order from a person to buy, sell or subscribe for one or more crypto assets and forwarding that order for execution to third parties.
• Provision of advice on crypto assets. This means tailor-made or specific recommendations for a third party, consulting on acquisition, sale of one or more crypto assets or use of crypto asset services.

What is beyond the scope of the MiCA Regulation?

The MiCA Regulation will not apply to unique and non-fungible tokens or NFT, as well as to crypto assets which are classified under the already existent legal framework, inter alia:

• Financial instruments which are subject to EU Directive No 2014/65/EU on the financial instruments markets.
• Funds and means that are not e-money tokens, which are subject to EU Directive No 2015/2366 on payment services in the internal market (save for e-money tokens).
• Deposits, including structured deposits, which are subject to EU Directive No 2014/49/EU on deposit guarantee schemes.
• Miscellaneous insurance and pension products, which are subject to Directive No 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance.
• Securitization transactions, which are subject to EU Regulation No 2017/2402 or the Securitization Regulation.

Furthermore, the provisions of MiCA Regulation will not apply to the European Central Bank (ECB) and EU national banks.

White papers of crypto assets

One of the main plans of the Regulation is to provide for a mandatory introduction of a so-called crypto asset White Paper, in which issuers of crypto assets will have to include a description of the issuer and the key stakeholders of the development of the project; on the rights and obligations related to crypto assets, including the procedures and conditions for exercising those rights. It will also be necessary to include a description of the features of the public offer, including the number of crypto assets, the issue price and the subscription terms; information on the technology and its standards applied by the issuer of crypto assets and enabling the holding, safekeeping and transfer of those crypto assets.

Furthermore, the White Paper should also include information on the risks associated with crypto assets, the issuer of crypto assets, the public offer of crypto assets and the implementation of the project; and a statement from the management confirming that the information provided therein is true and complete.

Until now, the White Paper was a free choice of entrepreneurs, the content of which was not monitored. With the entry into force of the MiCA Regulation, liability will be established for the provision of false information in the White Paper, which might reach at least 700 thousand euros for natural persons and at least 5 million euros for legal entities.

MiCA is also expected to provide consumer protection against so-called greenwashing risks. The Regulation will concurrently develop draft technical standards to require crypto asset market participants to provide information on the environmental and climate impacts of the activities of crypto assets. The European Securities and Markets Authority (ESMA) is expected to develop draft technical standards for the content and presentation of information. It is expected that the EU Member States will retain a comparatively high level of discretional powers with respect to the sustainability issues.

MiCA Regulation comes into force

Today, 29 June 2023, enters into force MiCA regulation which shall reshape the crypto industry in Europe.

The new EU regulation for crypto assets – the Markets in Crypto Assets Regulation (MiCAR) – provides uniformed rules for crypto markets, which is important for the issuers of crypto assets, crypto asset service providers, investors in crypto assets and for the stability and integrity of the crypto ecosystem in general.

Ellex team of experienced legal advisers in matters related to the digital assets have put together a Crypto Regulation Roadmap where you will find the most important information you need to know about the newly enacted regulation.

Crypto assets under MiCAR

Crypto-assets within the scope of MiCAR:

• Asset-References Token (ATR) is a crypto-asset which maintains its stable value by referencing to another value or right or a combination thereof, including one or more official currencies
• E-Money Token (EMT) is a crypto-asset which maintains its stable value by referencing to the value of one official currency
• Other crypto-assets are such digital assets which have a digital representation of a value or a right which may be transferred and stored electronically, using distributed ledger technology or similar technology.

Crypto-assets outside the scope of MiCAR:

• NFTs only if unique and not fungible with other crypto-assets. MiCAR determines several aspects when NFT should not be considered as unique and non-fungible, e.g., when issuing fractional parts of unique and non-fungible crypto-assets, issuing series or collections, etc.
• Crypto-assets which fall under existing EU financial services legislation (e.g., financial instruments under MiFID II, deposits, funds, insurance products, etc.).
• Crypto-assets which cannot be transferred to other holders (i.e., those accepted only the issuer itself) (e.g., loyalty schemes).

Crypto asset services and crypto asset service providers (CASPs) under MiCAR

Services within scope of MiCAR

The following crypto-asset services are included to MiCAR:

• 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

Special attention should be put on which crypto-asset services are applicable to the service provider, especially if one is currently operating under AMLD5 (the list of crypto-asset services under MiCAR and AMLD5 do not coincide).

New CASPs

• Application to the competent authority, including the following:
  • overview of the applicant, its planned operations, services, instruments etc (similar to business plan)
  • fit & proper documentation of managers and owners
  • overview of prudential safeguards (either own funds or insurance / guarantee)
  • operating internal rules, incl depending on the crypto-asset services to be provided
  • description of risk management and internal control system
  • technical documentation of IT systems and security arrangements
  • description of segregation and safeguarding of client’s funds
  • description of AML/CFT measures to be applied

Proceeding of the competent authority shall last for 4 – 5 months.

• For passporting the CASP license, an application to the competent authority of the home member state, including the following:
  • list of member states where the CASP plans to provide crypto-asset services
  • intended starting date of providing crypto-asset services
  • types of crypto-assets planned to be provided
  • list of activities of the CASP not regulated

Proceeding of the competent authority shall last for approximately 1 month.

Leverage of existing licenses

• VASPs operating currently under the AMLD5
  • Shall have an extended transitional period (up to 18 months from the full application of the MiCAR) and simplified authorisation process. The period of transitional period shall be decided by each member state by the end of June 2024.
  • VASPs wishing to benefit from the CASP license under MiCAR (including passporting regime) may apply for the CASP license prior to the end of the extended transitional period.
• Other licensed financial institutions
  • May benefit from their existing license, i.e., depending on the license a financial institution may be allowed to provide certain crypto asset services after a notification to a competent authority. For example, credit institutions may provide all crypto asset service, the investment firms may provide crypto-asset service if authorized to provide equivalent service under investment firm license, etc.
  • Notification must be done to the home member state competent authority.
  • Proceeding by the competent authority shall last for 40 working days.

Issuance and offering of crypto-assets under MiCAR

• ATRs

• issuers need to apply for an authorisation (incl approval of white paper), proceeding shall last for 8 – 9 months.
• exemptions:
  • providing crypto-assets over a period of 12 months with an outstanding value ≤ 5M EUR; or
  • offer addressed to qualified investors

• EMTs

• issuers need to be either authorised credit institutions or e-money institutions
• issuer required to draft and publish a white paper, notification to the home member state competent authority 40 working days prior to publishing a white paper

• Other crypto-assets
• issuers required to draft and publish a white paper, notification to the home member state competent authority 20 working days prior to publishing a white paper

Ellex in cooperation with Chainalysis, a blockchain analysis firm, also organized a webinar MiCAR – what to expect from the new EU regulation?

During the webinar, we discussed which cryptos shall be regulated under MiCAR, what are the rules for the issuers of crypto-assets and for the crypto asset service providers, who will be most affected by MiCAR and how, and much more! The recording of the webinar is available HERE.