ESMA Opens Feedback Window on MiCA Guidelines
The European Securities and Markets Authority (ESMA), the top regulator of the European Union’s financial markets, has launched a feedback window for guidelines under the Markets in Crypto Assets Regulation (MiCA).
MiCA is the EU’s comprehensive crypto law that is set to take effect this year. The legislation aims to provide legal certainty, address compliance challenges, and have global implications.
ESMA has released two consultation papers on reverse solicitation and the classification of cryptocurrencies as financial instruments.
The regulator is seeking inputs from stakeholders to create structured and flexible crypto laws. Interested parties have until April 29, 2024, to submit their comments.
ESMA invites crypto-asset service providers, financial entities dealing with crypto-assets, and all stakeholders interested in crypto-assets to respond to these consultation papers.
Responding to Consultation Papers
In its first consultation paper, ESMA seeks guidance on the conditions for applying the reverse solicitation exemption and supervision practices to prevent circumvention.
The reverse solicitation exemption, Article 61 of MiCA, restricts third-country firms from soliciting clients in the EU. ESMA wants to understand potential loopholes that could be exploited by these firms.
The second consultation paper addresses the qualification of crypto-assets as financial instruments. ESMA wants to ensure a harmonized approach throughout the Union and reduce misunderstandings and misinterpretations.
Hot Take: ESMA Seeks Feedback on MiCA Guidelines
The European Securities and Markets Authority (ESMA) has opened a feedback window for guidelines under the Markets in Crypto Assets Regulation (MiCA). The regulator is seeking inputs from stakeholders on two consultation papers regarding reverse solicitation and the classification of cryptocurrencies as financial instruments. MiCA, the EU’s comprehensive crypto law set to take effect this year, aims to provide legal certainty and address compliance challenges. Interested parties, including crypto-asset service providers and financial entities dealing with crypto-assets, are invited to respond to the consultation papers by April 29, 2024. ESMA’s goal is to create structured yet flexible regulations for the crypto industry and ensure a harmonized approach throughout the Union.
By
By
By
By