ESMA publishes MiCA advice
18 October 2023 Europe
Image: Parradee/stock.adobe.com
In a letter to the Economic and Financial Affairs Council, ESMA has encouraged European member states to put preparations in place for the upcoming markets in crypto assets (MiCA) regulation.
Verena Ross, ESMA chair, advises member states to designate the competent authorities responsible for carrying out MiCA functions and duties. In the letter, she also proposes consideration of a shortened grandfathering timeframe of 12 months to jurisdictions offering it. Currently, MiCA will allow the process to continue until 1 July 2026.
Alongside the letter, ESMA has released a statement listing expectations for crypto-asset service providers and their supervising authorities, from now until the end of the MiCA transition. The organisation recommends a focus on supervisory consistency across the EU and well-planned resource dedication in advance of the regulation coming into force, enabling effective supervision.
ESMA additionally raises the importance of client awareness of their grandfathered crypto-asset offerings’ regulatory status.
Verena Ross, ESMA chair, advises member states to designate the competent authorities responsible for carrying out MiCA functions and duties. In the letter, she also proposes consideration of a shortened grandfathering timeframe of 12 months to jurisdictions offering it. Currently, MiCA will allow the process to continue until 1 July 2026.
Alongside the letter, ESMA has released a statement listing expectations for crypto-asset service providers and their supervising authorities, from now until the end of the MiCA transition. The organisation recommends a focus on supervisory consistency across the EU and well-planned resource dedication in advance of the regulation coming into force, enabling effective supervision.
ESMA additionally raises the importance of client awareness of their grandfathered crypto-asset offerings’ regulatory status.
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