ESMA consultation paper on the markets in crypto-assets (MiCA) implementation
ESMA’s consultation paper emphasizes the limitations on third-country firms providing crypto-asset services and the need to interpret the reverse solicitation exemption narrowly.
The European Union’s Securities and Markets Authority (ESMA) has been mandated to develop technical standards and guidelines for certain provisions of the ‘Regulation on markets in crypto-assets (MiCA)‘. ESMA has already released two consultation packages in July and October 2023 to gather input from stakeholders. The current consultation paper aims to collect views and opinions on the implementation of MiCA, particularly regarding the development of certain MiCA mandates by December 2024.
The provision of crypto-asset services by third-country firms is strictly limited under MiCA. To protect EU-based investors from non-compliant entities outside the EU, ESMA and national competent authorities will take necessary action.
To provide guidance on applying the reverse solicitation exemption and preventing its potential circumvention, ESMA is considering adopting guidelines. These guidelines will define the supervision practices that national competent authorities should implement. ESMA has issued a Consultation Paper (CP) to seek input from interested parties in developing these guidelines. Respondents are encouraged to support their arguments or proposals with relevant information.
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