The European Securities and Markets Authority (ESMA) has published a consultation package under MiCA and is inviting comments from stakeholders. The European Securities and Markets Authority is an independent European Union Authority located in Paris.

ESMA replaced the Committee of European Securities Regulators on 1 January 2011. It is one of the three new European Supervisory Authorities set up within the European System of Financial Supervisors. The ESMA aims to release three consultation packages, and the first one is looking for input on proposed rules for crypto-asset service providers (CASPs).

The authoritative body wants to know more about the authorisation, identification, and management of conflicts of interest for CASPs and also how they should address complaints. Furthermore, ESMA wants to know more about the current and planned activities of respondents to better understand the EU crypto-asset markets and their future development. The questions touch on subjects such as the expected turnover of the respondents, their plans for the use of on-chain vs off-chain trading, as well as the number of white papers they plan to publish.

It’s worth noting that any input gathered as part of this consultation will remain confidential but will influence certain proposals to be inserted in the second and third consultation packages. ESMA representatives talked about this first consultation package and described it as an important milestone for ESMA in the implementation of the MiCA framework. They also emphasised that the information obtained will help transform the Authority’s ambition to set high regulatory standards in the EU for crypto-asset related activities into actual requirements.

As for the second consultation package, it is currently scheduled for October 2023. More information about MiCA The Markets in Crypto Assets Regulation (MiCA) was created to establish the very first common licensing regime for crypto wallets and exchanges looking to operate in the European Union. The scope of MiCA covers issuers of unbacked crypto assets, trading venues, stablecoins, and wallets alongside rules to reveal the identity of persons transacting cryptocurrencies.

Under MiCA, crypto companies such as wallets and exchanges will receive an operating licence as long as they abide by certain governance and consumer protection norms. The legislation also introduces reserve requirements for stablecoins. In April 2023, MiCA passed with 517 votes in favour to 38 against and 18 abstentions following an initial vote postponement due to technical difficulties related to the document’s translation.

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