Pan-European financial regulator The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, has published its first Final Report under the Markets in Crypto-Assets Regulation (MiCA) initiative.
In July 2023 ESMA published a crypto rule consultation document to seek the views of stakeholders on ESMA’s proposals for 5 Regulatory Technical Standards (RTS) and 2 Implementation Technical Standards (ITS). The consultation period closed on 20 September 2023. ESMA said it received 36 responses, 10 of which were confidential.
The new report, which aims to enhance clarity and predictability, promote fair competition between cryptocurrency service providers (CASP) and a safer environment for investors across the Union, includes proposals on:
- information required for the approval of CASPs;
- the information required when financial entities notify their intention to provide cryptographic services;
- information required to evaluate the intended acquisition of a qualifying interest in CASP, and
- how CASPs should deal with complaints;
Regarding next steps, ESMA said it has submitted its Final Report to the European Commission (EC) and will provide further advice and technical guidance in this area if requested by the EC.
ESMA Final Report on proposed encryption rules for the EU can be found here (pdf).