News and developments
Adapting to MiCA: ESMA’s recent publications for the Crypto Industry
On 25 March 2024, the EU watchdog published:
Author: James Debono, Mark Caruana Scicluna
- a final report on the first package of measures under MiCA;
- a final report on the cooperation between various authorities in relation to MiCA; and
- a consultation document on the third package of measures under MiCA.
ESMA issues a Final Report for the First Package of Measures under MiCA
MiCA requires ESMA to prepare draft regulatory technical standards (RTS) and implementing technical standards (ITS) on a variety of topics. In July 2023, ESMA issued its first consultation package with a raft of measures – under 5 RTSs and 2 ITSs – in respect of the following:-
- the notification by certain financial entities of their intention to provide crypto-asset services;
- the authorisation of crypto-asset service providers (CASPs);
- complaints handling by CASPs;
- the identification, prevention, management and disclosure of conflicts of interest; and
- the proposed acquisition of a qualifying holding in a CASP.
ESMA issues a Final Report for the Cooperation between Competent Authorities under MiCA
ESMA also issued a final report specifying the requirements for cooperation, exchange of information and notification between competent authorities, European Supervisory Authorities, and third-country authorities under MiCA. ESMA will now submit the RTSs and ITSs to the European Commission for adoption. ESMA did not consult publicly on these matters since the standards are not addressed to market participants.Third Consultation Package under MiCA
ESMA’s third consultation package seeks public scrutiny on four new topics, namely:-
- detection and reporting of suspected market abuse in crypto-assets (RTS);
- suitability requirements for certain crypto-asset services and the format of the periodic statement for portfolio management (Guidelines);
- policies and procedures, including the rights of clients, for crypto-asset transfer services (Guidelines); and
- ICT operational resilience for certain entities under MiCA (Guidelines).
Author: James Debono, Mark Caruana Scicluna