ESMA finalises first rules on crypto-asset service providers

Pan European financial regulatory body The European Securities and Markets Authority (ESMA), the EU’s 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 rules Consultation Paper to seek stakeholders’ views on ESMA’s proposals for 5 regulatory technical standards (RTSs) and 2 implementing technical standards (ITSs). 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 foster clarity and predictability, promote fair competition between crypto-asset service providers (CASPs) and a safer environment for investors across the Union, includes proposals on:

• information required for the authorisation of CASPs,
• the information required where financial entities notify their intent to provide crypto-asset services,
• information required for the assessment of intended acquisition of a qualifying holding in a CASP, and
• how CASPs should address complaints.

Regarding next steps, ESMA said that it has submitted the Final Report to the European Commission (EC) and will provide further advice and technical guidance in this area if requested by the EC.

ESMA’s Final Report on its proposed crypto rules for the EU can be found here (pdf).