The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator, has recently launched its first consultation package under the Markets in Crypto-Assets Regulation (MiCA). This marks a significant step towards establishing concrete rules for crypto markets in the EU. ESMA is seeking stakeholder comments until September 20, 2023.

In this initial consultation package, ESMA is soliciting input on proposed rules for crypto-asset service providers (CASPs). The focus areas include CASP authorisation, identification, conflict of interest management, and complaint handling procedures.

The consultation also aims to collect insights on stakeholders’ current and future activities. This fact-finding exercise will help ESMA better comprehend the EU crypto-asset markets and their potential evolution. The data collected will remain confidential and will be used to fine-tune proposals in the upcoming second and third consultation packages.

Verena Ross, Chair of ESMA, emphasized the importance of this consultation package in implementing the MiCA framework. Ross stated that the initiative translates ESMA’s ambition to establish high regulatory standards for crypto-asset related activities in the EU into tangible requirements.

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator, has recently launched its first consultation package under the Markets in Crypto-Assets Regulation (MiCA). This marks a significant step towards establishing concrete rules for crypto markets in the EU. ESMA is seeking stakeholder comments until September 20, 2023.

In this initial consultation package, ESMA is soliciting input on proposed rules for crypto-asset service providers (CASPs). The focus areas include CASP authorisation, identification, conflict of interest management, and complaint handling procedures.

The consultation also aims to collect insights on stakeholders’ current and future activities. This fact-finding exercise will help ESMA better comprehend the EU crypto-asset markets and their potential evolution. The data collected will remain confidential and will be used to fine-tune proposals in the upcoming second and third consultation packages.

Verena Ross, Chair of ESMA, emphasized the importance of this consultation package in implementing the MiCA framework. Ross stated that the initiative translates ESMA’s ambition to establish high regulatory standards for crypto-asset related activities in the EU into tangible requirements.

Ross also highlighted that ESMA is determined to ensure that entities involved in crypto-asset related activities understand that the EU is not a place for forum-shopping. She further reminded consumers that even with the implementation of MiCA, no crypto-asset can be deemed entirely safe.

ESMA will continue working on its remaining mandates alongside this consultation, with plans to publish a second consultation package in October 2023. The feedback received from this consultation will be considered for a final report, and the draft technical standards will be submitted to the European Commission for endorsement by June 30, 2024 at the latest.

In conclusion, ESMA’s launch of its first consultation package under MiCA marks a significant step towards establishing concrete rules for crypto markets in the EU. By seeking stakeholder input on proposed rules for CASPs and collecting insights on current and future activities in the crypto market, ESMA is working towards establishing high regulatory standards for crypto-asset related activities in the EU. This initiative is part of a larger effort by European regulators to bring regulations to the crypto industry and ensure that it operates in a transparent and fair manner. As this process continues to unfold, it will be important for stakeholders to stay informed and participate in shaping the future of crypto regulation in the EU. With these efforts, it is hoped that consumers can have greater confidence in the safety and security of their investments in crypto-assets. The launch of this first consultation package under MiCA represents an important step forward in achieving these goals.