Cap. 647 Art. 29Refusal of  authorisation.       S.L. 373.01.        S.L. 373.01.

(1) Where an applicant operates establishments or relies on third parties established in high-risk third countries identified pursuant to Article 9 of Directive (EU) 2015/849, the competent authority shall ensure that the applicant complies with the provisions of regulations 12(2), 6(3) and 6(4) of the Prevention of Money

Laundering and Funding of Terrorism Regulations before granting or refusing an authorisation to act as a crypto-asset service provider in accordance with the provisions of the MiCA Regulation and this Act.

(2) Before granting or refusing an authorisation to act as a crypto-asset service provider in accordance with the provisions of the

MiCA Regulation and this Act, the competent authority shall ensure that the applicant complies with the provisions of regulation 11(10)

and (12) of the Prevention of Money Laundering and Funding of

Terrorism Regulations, where applicable.

(3) The competent authority shall refuse to grant an authorisation under Article 63 of the MiCA Regulation and article 28 where there are objective and demonstrable grounds that:

(a) the management body of the applicant poses a threat to its effective, sound and prudent management and business continuity, and to the adequate consideration of the interest of its clients and the integrity of the market, or exposes the applicant to a serious risk of money laundering or terrorist financing;

(b) the members of the management body of the applicant do not meet the criteria set out in Article 68(1) of the MiCA Regulation;

(c) the shareholders or members, whether direct or indirect, that have qualifying holdings in the applicant do not meet the criteria of sufficiently good repute set out in Article 68(2) of the MiCA Regulation; and, or

(d) the applicant fails to meet or is likely to fail to meet any of the requirements of Title V of the MiCA Regulation and this Part.

(4) Without prejudice to the provisions of sub-article (3), the competent authority shall also refuse to grant an authorisation under Article 63 of the MiCA Regulation and article 28 where:

(a) there exist close links between the applicant and other natural or legal persons and the said links prevent the effective exercise of their supervisory functions; and, or

(b) the laws, regulations or administrative provisions of a third country governing one or more natural or legal persons with which the applicant has close links, or any difficulties involved in their enforcement, prevent the effective exercise of its supervisory functions.