📖Legal Terms

VNST complies with the European digital asset regulatory framework - Markets in Crypto-Assets (MiCA).

MiCA enhances transparency by providing a comprehensive framework for issuers and service providers, including compliance with anti-money laundering rules. The framework aims to protect investors, maintain financial stability, while enabling innovation and boosting the attractiveness of the digital asset sector. MiCA applies to any individual or entity “engaged in the issuance, offering to the public and facilitating the trading of digital assets or providing services related to digital assets in the European Union.”

Key points of MiCA include:

ICOs are only allowed if the issuer meets two criteria:

• The issuer is a legal entity in one of the European Member States. For VNST, it will be registered in Lithuania.

• A whitepaper must be submitted to the competent state authority, so that the authority can grasp the basic information of the ICO.

Major digital assets covered by MiCA include:

• ART (asset-referenced token) – a digital asset that guarantees its value by pegging its value to an asset, currency basket or commodity.

• EMT (electronic money token – e-money token) – a tdigital asset that is pegged to fiat money, including most fiat-backed stablecoins.

The buyer has the right to withdraw the purchase within 14 days of the purchase and the issuer must refund the money without charging any other fees.

MiCA limits the issuance of electronic coins to ensure the stability of the European financial market. EMT buyers have the right to request a refund of the EMT purchase price from the issuer at any time. Therefore, it is mandatory for the EMT issuer to have a corresponding amount of collateral; otherwise, a fine of up to 15% of the total annual turnover will be applied.

The issuance of ART pegged to the euro must be approved by the European Central Bank. The issuer must be a legal entity in one of the EU countries and must be authorized by the competent authority after a review of the White Paper on the company model, management and identity of the members of the company's management board. ART buyers also have the ability to request a refund, following a specific procedure.

Service providers must be pre-authorized by national authorities to participate in the European market. Large service providers (around 15 million users or more) are supervised by the European Securities and Markets Authority (ESMA). Service providers must comply with the EU Transfer of Assets (TRF) Regulation in keeping data on the recipients of transferred digital assets, to help authorities combat money laundering and terrorist financing.