MiCA's Right of Withdrawal

Article 13 MiCA provides a right of withdrawal to retail holders who purchase crypto-assets other than asset-referenced tokens or e-money tokens either directly from an offeror (i.e., a person who offers crypto-assets to the public) or from a crypto-asset service provider placing crypto-assets on behalf of that offeror. MiCA defines retail holders as 'any natural person who is acting for purposes which are outside that person's trade, business, craft or profession.' 

The right of withdrawal means that, within 14 calendar days from the date of the agreement to purchase crypto-assets, retail holders may withdraw from such agreement without incurring any fees or costs and without being required to give reasons.

Reimbursement

In the event that a retail holder exercises their right of withdrawal, all payments received from the retail holder, including any charges, must be reimbursed without undue delay and in any event no later than 14 days from the date notice is received.

The reimbursement must be carried out using the same means of payment as that used by the retail holder for the initial transaction, unless the retail holder expressly agrees otherwise and provided that the retail holder does not incur any fees or costs as a result of such reimbursement. 

Exceptions

Retail holders do not have a right of withdrawal under two circumstances:

• the crypto-asset has been admitted to trading prior to the purchase by the retail holder; or
• the offeror has set a time limit on their offer to the public, and the subscription period has ended.

White Paper Requirement

Offerors must include information on the right of withdrawal must be included in a crypto-asset white paper. If the offeror does not comply with this information obligation, the right of withdrawal is not extended; however, in such a case, the crypto-asset white paper is incomplete and the offeror can be held liable for it (see here for details about MiCA's liability provisions).