Position Paper on the Ordered Business Wind-Down Plan (PCA) for PSANs and CASPs

In a new position paper, ADAN analyzes the challenges faced by Digital Asset Service Providers (DASPs) and Crypto-Asset Service Providers (CASPs) in meeting the regulatory requirements related to the Orderly Wind-Down Plan (OWP).

This requirement is intended to ensure an orderly winding down of a service provider’s operations, thereby protecting clients and their assets. In particular, it requires the service provider to establish a system that enables:

• to notify its customers of the cessation of business,
• to offer them a return of their digital assets, either in the form of cryptocurrency or converted into fiat currency,
• and to ensure that these funds are transferred securely to their owners or to a designated third-party account.

However, complex situations—such as managing dormant accounts (inactive or unreachable users whose contact information is often outdated)—make it extremely difficult to return assets. These cases create significant operational challenges and expose service providers to substantial regulatory risks.

Three potential approaches to addressing these challenges

To address these challenges, Adan offers several solutions:

• Set a financial threshold below which dormant client funds could be considered abandoned, thereby limiting the operational costs and efforts required to manage them.
• Transfer dormant portfolios to another CASP, although this option is complex in practice due to differences in business models and the uncertain viability of certain providers.
• Turning to the Caisse des Dépôts et Consignations (CDC) is a top priority, according to Adan. As a stable public entity, the CDC could ensure the long-term secure safekeeping of dormant customers’ digital assets, while providing a sustainable solution for service providers ceasing operations.

A call for concerted action

ADAN urges regulatory authorities to clarify the expectations regarding the PCA and to incorporate these proposals into the regulatory framework, so that PSANs and CASPs can meet the requirements while effectively protecting customers.