EU Regulator Publishes Consultation on MiCA Standards
The European and Securities Markets Authority (ESMA) has recently released a consultation paper on the implementation requirements of the Markets in Crypto Assets (MiCA) regulation. This move comes as part of ESMA’s efforts to set high regulatory standards in the EU for crypto-asset-related activities.
The consultation paper, titled “Technical standards specifying certain requirements of the Markets in Crypto Assets Regulation (MiCA)”, invites industry players to provide their feedback and comments on the proposals outlined in the paper. The deadline for submitting feedback is set for September 20, 2023.
MiCA is a comprehensive regulatory framework that aims to establish a harmonized set of rules for cryptocurrencies and digital assets in the European Union. The regulation covers various aspects of crypto-assets, including trading, custody, and issuance. ESMA’s consultation paper focuses on the first set of requirements under the MiCA regulation.
The proposed requirements include the notification by financial service providers if they plan to offer crypto-asset services, regulatory approval for digital asset service providers, and the handling of customer complaints by crypto-asset service providers (CASPs). The paper also covers disclosures of conflicts of interest.
The consultation paper is an important milestone in ESMA’s implementation of the MiCA framework. Verena Ross, Chair of ESMA, emphasized the regulator’s determination to ensure that entities involved in crypto-asset-related activities understand that the EU is not a place for forum-shopping. She also highlighted the need for consumers to be aware that, even with the implementation of MiCA, there is no such thing as a completely safe crypto-asset.
ESMA plans to present the final proposals to the European Parliament no later than June 30, 2024. The consultation process allows industry participants to provide their feedback and shape the regulatory framework for crypto-assets in the EU.
The publication of this consultation paper comes as part of a collaborative effort between ESMA and the European Banking Authority (EBA). The EBA also recently released its first standards package on crypto-assets on July 12, 2023.
Overall, the consultation paper on MiCA implementation requirements marks a significant step towards establishing a comprehensive and coherent regulatory framework for crypto-assets in the European Union. It provides an opportunity for industry players to contribute their insights and shape the future of the crypto-asset industry in the EU.
