In a new position paper, Adan analyzes the challenges faced by Digital Asset Service Providers (PSANs) and Crypto-Asset Service Providers (CASPs) in complying with regulatory requirements related to the Orderly Wind-Down Plan (PCA).

This obligation is designed to ensure an orderly cessation of a service provider’s activities while protecting clients and their assets. It requires providers to implement measures that:

  • Inform clients about the cessation of activities,
  • Offer clients the restitution of their digital assets, either as crypto-assets or converted into fiat currency,
  • Ensure the secure transfer of these funds to their rightful owners or a designated third-party account.

However, complex situations such as managing dormant clients — inactive or unreachable users whose contact details are often outdated — significantly complicate the restitution process. These cases create substantial operational challenges and expose providers to significant regulatory risks.

Three solutions to address these Challenges

To tackle these issues, Adan suggests several solutions:

  • Establish a financial threshold below which the funds of dormant clients could be deemed abandoned, thus limiting the operational and administrative burden of managing them.
  • Transfer dormant portfolios to another CASP, although this approach is often impractical due to differences in business models and the uncertain viability of some providers.
  •  Engage the Caisse des Dépôts et Consignations (CDC), a solution prioritized by Adan. As a stable public entity, the CDC could provide long-term secure storage for dormant clients’ digital assets, offering a sustainable option for providers winding down their activities.

A call for coordinated action

Adan urges regulatory authorities to clarify expectations surrounding the PCA and incorporate these proposals into the regulatory framework, enabling PSANs and CASPs to meet their obligations while effectively protecting clients.