for crypto assets EU Regulator Launches Consultation on MiCA Rules for Crypto Assets


The European and Securities Markets Authority (ESMA) has launched a consultation paper on the first requirements as stipulated in the newly adopted Markets in Crypto Assets (MiCA) regulation. The consultation period will be open to the crypto industry’s responses and comments until September 20, 2023.

According to ESMA’s “Technical standards specifying certain requirements of the Markets in Crypto Assets Regulation (MiCA),” the proposals must be presented to the EU parliament by June 30, 2024. Verena Ross, Chair of ESMA expressed her ambition to set high regulatory standards in the EU for crypto-asset related activities and reminded consumers that even with the MiCA implementation, there will be no such thing as a safe crypto-asset.

The consultation package includes seven proposals – five are draft RTSs while two are ITS. These include notification by financial providers when offering crypto-asset services, regulatory approval for digital assets service providers, and handling of customer complaints. Other proposed requirements cover disclosures of conflict of interest and segregation of client funds and assets.

The ESMA proposals are a collaboration between the regulator and the European Banking Authority (EBA) which released its first standards package on July 12.

Industry players are requested to provide feedback by September 20. The EU regulator will present the final proposals to the European Parliament by June 30, 2024.

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