- ESMA has published the second consultation package for MiCA.
- The regulator draws focus on five key areas.
- The third consultation package will be published in Q1 2024.
The European Securities and Markets Authority (ESMA) published its second consultative paper on digital assets market rules under the Markets in Crypto-Assets Regulation (MiCA) framework on October 5.
The second publication follows a previous consultation package that sought to collect stakeholder views, comments, and opinions on technical standards for specifying specific requirements of the MiCA crypto regime.
Focus Areas in the Second Consultation
ESMA published a 307-page document seeking stakeholders’ input on five sets of proposed rules under the MiCA framework, covering:
- Sustainability indicators for distributed ledgers: The regulator proposes quantitative and qualitative metrics, among them greenhouse gas emissions and testimony about equipment’s use impact on natural resources.
- Disclosures of inside information: ESMA has proposed a draft that distinguishes the disclosure of inside information on the relevant party’s website from active dissemination to the public to make both an obligation for service providers.
- Technical requirements for white papers: The regulator suggests adopting specific metadata that would make white papers easily searchable through its database (European Single Access Point – ESAP) based on a three-type crypto assets classification system foreseen by MiCA.
- Trade transparency measures: The regulator proposes a mandatory requirement that obligates service providers to report trading and publication information of orders, including the identity of the crypto asset, quantity, and pricing, as well as the date, time, and venue of trade execution.
- Record-keeping and business continuity requirements for crypto-asset service providers (CASPs): ESMA suggests allowing CASPs to store data in the format they consider appropriate, provided it can be converted into the regulator’s preferred format.
Next Steps
ESMA has urged relevant stakeholders to submit their feedback on the consultation by December 14, after which the regulator will publish a final report and present it to the European Commission for endorsement by June 30, 2024.
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The regulator will publish a third consultation package in Q1 of 2024.
Stay updated on how France is preparing for MiCA:
France Prepares for MiCA with Focus on 6 Key Areas
Read why the MiCA framework is important for the industry:
Why the EU’s MiCA Approval and Crypto Tax Changes Matter
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