- ESMA has released a consultation document on MiCA implementation requirements.
- Industry stakeholders are invited to provide feedback by September 20th.
- EU regulators plan to submit final proposals to the European Parliament by June 30, 2024.
The European Securities and Markets Authority (ESMA) consultation form It builds on the initial requirements outlined in the recently adopted Crypto Asset Market (MiCA) Regulations.
ESMA’s “Technical Standards Specifying Certain Requirements for the Crypto-Assets Market Regulation (MiCA)” seeks feedback from the industry on proposals to be submitted to the EU Parliament by 30 June 2024 at the latest.
The consultation is open for responses and comments from the crypto industry until September 20, 2023, according to the regulator’s schedule.
ESMA President Verena Roth, said:
“This first package of consultations is an important milestone for ESMA in the implementation of the MiCA framework. We are determined to help parties involved in crypto-related activities understand that the EU is not a place for forum shopping, and even if MiCA is introduced However, we want to remind consumers that there is no such thing as a safe cryptocurrency.”
📨 Enter rules for cryptocurrency service providers 👉 Authorize, identify and manage conflicts of interest 👉 Complaints
🗓️ September 20 pic.twitter.com/mhiYNxFWA9
— ESMA – EU Securities Markets Regulator 🇪🇺 (@ESMAComms) July 12, 2023
Draft contains conflict of interest provisions
According to ESMA, the MiCA regulation requires regulators to develop both regulatory technical standards (RTS) and implementing technical standards (ITS).
This is the first consultation document released by the regulator to MiCA, detailing seven proposals (five draft RTS and two ITS).
Specifically, RTS requirements include notice by financial providers when they plan to offer cryptocurrency services. Regulatory Approval for Digital Asset Service Providers. Handling of customer complaints by Crypto Asset Service Providers (CASP). The draft also includes a conflict of interest disclosure.
Regarding the requirement to separate client funds and assets, regulators point to Section 62(2)(k) of the MiCA. According to it, CASP applicants are obliged to confirm that this is the case, along with an explanation of how this is done.
“Some of the recent collapses in the cryptocurrency world have revealed misuse of customer funds and crypto assets. This seems to have been allowed by the lack of governance and internal controls,,” ESMA noted in its paper.
ESMA’s proposal is the result of a collaboration between the regulator and the European Banking Authority (EBA), which also announced its first package of standards on Wednesday 12 July.