February 2025

As the European Union's Markets in Crypto-Assets Regulation (MiCA) comes into full effect, GCEX is dedicated to ensuring that our services align seamlessly with these new standards. Our goal is to provide you—our esteemed institutional and professional clients—with a trading environment that is both secure and fully compliant.

Understanding MiCA

MiCA establishes a comprehensive regulatory framework for crypto-assets within the EU, focusing on:

• Transparency and Disclosure: Ensuring clear information is available for all crypto-asset activities.

• Consumer and Investor Protection: Safeguarding the interests of all market participants.

• Market Integrity: Preventing market abuse and ensuring fair trading practices.

This regulation applies to various crypto-assets, including:

• Asset-Referenced Tokens (ARTs): Tokens maintaining value by referencing multiple assets.

• Electronic Money Tokens (EMTs): Tokens pegged to a single fiat currency.

• Utility Tokens: Tokens providing access to specific services or goods.

By setting these standards, MiCA aims to foster innovation while ensuring financial stability and protecting investors.

GCEX's Commitment to Compliance

At GCEX, we have always prioritised regulatory adherence and the security of our clients. In light of MiCA, we have been enhancing our efforts in the following areas:

1. Licensing and Regulatory Alignment

GCEX is authorised by the Danish Financial Supervisory Authority as a Currency Exchange and registered as a Virtual Asset Service Provider under the AML regulation and we have actively engaged to ensure our operations meet MiCA’s requirement. Through the FSA, we have filed our application for a MiCA license, and are waiting for a response from the regulator.

In addition, we continue offering uninterrupted services across multiple jurisdictions, through existing authorisations that include:

• United Kingdom: Authorised by the Financial Conduct Authority (FCA) as a full-scope investment firm.

• Dubai: Holding a Virtual Asset Service Provider Licence by the Dubai Virtual Assets Regulatory Authority (VARA).

2. Enhanced Client Protections

MiCA introduces stringent consumer protection measures. In line with MiCA's focus, we have been implemented measures such as:

• Transparent Reporting: Providing clear insights into asset valuations, associated risks, and transaction details.

• Robust Market Surveillance: Monitoring trading activities to uphold market integrity and prevent market abuse.

3. Comprehensive Asset Compliance

MiCA imposes strict rules on stablecoins and asset-referenced tokens (ARTs). Therefore, we implement ongoing reviews on all digital assets offered on our platform to ensure they meet MiCA's standards, particularly concerning:

• Stablecoins: Verifying compliance with capital and liquidity requirements.

• Utility Tokens: Ensuring proper classification and adherence to regulatory guidelines.

4. KYC and AML Procedures

MiCA integrates with the EU’s Anti-Money Laundering (AML) regulations, which already require CASPs to implement stringent Know-Your-Customer (KYC) and transaction monitoring frameworks. Our commitment to combating financial crime includes:

• Rigorous Identity Verification: Implementing thorough Know-Your-Customer (KYC) processes.

• Continuous Monitoring: Utilising advanced systems to detect and prevent illicit activities.

• Regulatory Reporting: Maintaining transparent communication with relevant authorities.

What This Means to You

For our clients—hedge funds, brokers, asset managers, family offices, and professional traders—MiCA brings greater regulatory certainty and enhanced protections. Here’s what it means in practice:

• Continued Access to a Fully Regulated Prime Brokerage: Regulatory assurance that our services meet the latest regulatory standards. By ensuring full compliance with MiCA ahead of its enforcement, GCEX guarantees uninterrupted access to trading services across the European market.

• Stronge Security: The enhanced consumer protection measures under MiCA will give clients greater transparency, asset security, and protection against market manipulation.

• Service Continuity with Access to Fully Compliant Digital Asset Offerings: You will experience uninterrupted access to our trading platforms. MiCA sets clear regulatory requirements for stablecoins and asset-backed tokens, ensuring that all digital assets offered through GCEX meet the highest standards of transparency and security.

GCEX is committed to delivering a fully compliant, secure, and institutional-grade trading environment. Our proactive approach to MiCA compliance aims to allow you to focus on your investment strategies confidently and efficiently.

For more information on how GCEX is preparing for MiCA and what it means for your trading operations, contact our team today.

GCEX – Your Trusted Partner in Digital Assets and Forex Trading.