ESMA Seeks Crypto Industry Input on MiCA Regulatory Framework

<p>The
European Securities and Markets Authority (<a href="https://www.financemagnates.com/terms/e/esma/">ESMA</a>) is curious what the
cryptocurrency industry thinks about the recently introduced Markets in
Crypto-Assets Regulation (<a href="https://www.financemagnates.com/tag/mica/" target="_blank" rel="follow">MiCA</a>). Accordingly, it has published its inaugural
consultation package and plans to publish two more in the future. Stakeholders
are invited to submit their comments by the end of September 2023.</p><p>ESMA Wants to Know the Industry's Opinion on Crypto Regulation in Europe</p><p>This
consultation package, the first of three, seeks input on proposed rules for
crypto-asset service providers (CASPs), specifically concerning their
authorization, conflicts of interest identification and management as well as handling complaints.</p><p>ESMA also
intends to gather more insights on stakeholders' current and future activities
as part of a fact-finding exercise to better understand the EU's crypto-asset
markets and their evolution. This initiative includes gaining information about
stakeholders' expected turnover, planned white paper publications, and
preferences for on-chain versus off-chain trading.</p><p>Verena
Ross, the Chairwoman of ESMA, considers this first consultation package a
significant step towards implementing the MiCA framework. </p><p>"We are
determined to ensure entities involved in crypto-asset related activities
understand that the EU is not a place for forum-shopping. We also want to
remind consumers that, even with the implementation of MiCA, there will be no
such thing as a safe crypto-asset," Ross commented.</p><p>Responses
to these consultations will remain confidential and assist ESMA in fine-tuning
proposals for the second and third consultation packages. Alongside this
consultation, ESMA will continue working on its remaining mandates with a view
to publishing a second consultation package in October 2023.</p><p>ESMA
expects to publish a final report and submit the draft of technical standards to
the European Commission for endorsement no later than 30 June 2024. The
regulation was first presented in September 2020, So its implementation could
take four years. Of course, if there are no delays along the way.</p><blockquote><p lang="en" dir="ltr">The EU brings <a href="https://twitter.com/hashtag/CryptoAssets?src=hash&amp;ref_src=twsrc%5Etfw">#CryptoAssets</a>, crypto-assets issuers and service providers under a regulatory framework.