Pre-Application Engagement with the Central Bank of Ireland for MiCA Authorisation

The authorisation process under the Markets in Crypto‑Assets Regulation (MiCA) requires firms intending to operate as Crypto-Asset Service Providers (CASPs) in the European Union to obtain regulatory approval from their national competent authority. In Ireland, this authority is the Central Bank of Ireland (CBI).

While the formal application process is the second stage of authorisation, firms are strongly encouraged to engage with the regulator early through a pre-application phase. This initial engagement enables the CBI to understand the proposed business model and provides firms with valuable regulatory feedback before submitting a full application.

The Two-Phase Authorisation Process

The MiCA authorisation process with the Central Bank of Ireland typically consists of two stages:

Phase 1 – Preliminary Engagement

This stage involves early interaction between the firm and the Central Bank and usually includes:

• Submission of a Key Facts Document
• A pre-application meeting, generally held in person
• An initial review of the proposed business model and regulatory scope

Although firms may bypass this step and proceed directly to the formal application, early engagement is generally considered best practice. It allows firms to demonstrate preparedness, clarify expectations with the regulator, and identify potential issues before committing significant resources to the full application.

Phase 2 – Formal Authorisation Application

Following the preliminary engagement, firms submit the full authorisation package, including detailed documentation covering governance, financial projections, operational arrangements, and risk management frameworks required under MiCA.

Purpose of the Pre-Application Meeting

The pre-application meeting provides the Central Bank with an opportunity to gain a high-level understanding of the firm’s proposed operations and allows the firm to present its regulatory strategy.

Typically, firms provide the regulator with a presentation deck outlining key aspects of their proposed business model and organisational structure. This deck forms the basis for the discussion and helps the CBI assess the firm’s readiness to proceed to the formal authorisation stage.

Key Areas Covered in the Presentation Deck

The Central Bank generally expects the presentation to address the following areas.

1. Introduction to the Firm and Proposed Business Model

The firm should provide a high-level overview of:

• The organisation and its background
• The proposed business model under MiCA
• Strategic objectives and expected growth trajectory

This section should clearly explain how the firm intends to operate within the EU crypto-asset ecosystem.

2. Regulatory Permissions Sought and Current Regulatory Status

The presentation should clearly outline:

• The crypto-asset services for which authorisation is being sought
• Any existing regulatory permissions held in other jurisdictions
• The firm’s passporting strategy within the European Union
• Proposed jurisdictions where services will be offered

This helps the Central Bank understand the firm's regulatory footprint and expansion plans.

3. Shareholders and Group Structure

Firms should present high-level information about:

• Ownership structure
• Key shareholders
• The wider group organisation
• Jurisdictions where affiliated entities operate

A clear organisational chart is often used to illustrate group relationships and operational dependencies.

4. Business Model Details

The regulator expects a comprehensive overview of the firm's planned activities, including:

• Regulated and unregulated services
• Key products and service offerings
• Target client segments

Firms should also outline:

• Expected scale of operations (e.g., number of clients, assets under management, revenue projections)
• Operational arrangements, including third-party providers and intra-group services
• Technology infrastructure and IT/cybersecurity framework

A transaction flow diagram should also be included to demonstrate how the firm will access crypto-asset markets, clearly distinguishing between EU and non-EU crypto-asset activities and identifying where execution and processing occur.

Additionally, firms should describe their target market, expected customer growth during the first three years, and any planned migration of clients from existing affiliates.

Finally, this section should identify the key risks associated with the proposed business model, including operational, market, and regulatory risks.

5. Financial Information

The Central Bank expects high-level financial projections covering the first three years of operation, including:

• Profit and loss projections
• Balance sheet forecasts
• Revenue drivers and fee structures

Firms should also provide an overview of:

• Projected prudential capital requirements
• Expected regulatory own funds
• Sources of capital funding and liquidity arrangements

6. Governance and Organisational Structure

The presentation should outline the firm's governance framework, including:

• An organisational chart
• Full-time equivalent (FTE) staffing levels across functions
• Senior management roles and reporting lines
• Composition of the board of directors

Firms must also identify proposed Pre-Approval Controlled Functions (PCFs) required under the Irish regulatory regime.

Where relevant, the firm should highlight:

• Outsourced functions
• Seconded staff arrangements
• Planned staff growth over the first three years of operation

7. Consumer Protection Approach

The final section should explain how the firm intends to ensure consumer and investor protection, a key supervisory priority of the Central Bank.

This should include:

• Suitability and appropriateness assessments for customers
• Risk disclosures for crypto-asset products
• Client onboarding procedures
• Safeguards for both regulated and unregulated activities

Demonstrating a strong consumer protection framework is critical in establishing credibility with the regulator.

Benefits of Early Engagement

Engaging with the Central Bank during the pre-application stage provides several advantages:

• Early regulatory feedback on the proposed business model
• Identification of potential supervisory concerns
• Greater clarity on expectations for the formal application
• Stronger positioning when submitting the full authorisation package

For firms seeking authorisation under MiCA, proactive engagement with the Central Bank of Ireland can significantly streamline the authorisation process and demonstrate regulatory readiness from the outset.

Should you require any further information, contact us on 00353 (1) 2340044 or by email: info@cgsolicitors.ie