ESMA Releases Final Guidance on MiCA Regulations
The European Securities and Markets Authority (ESMA) has recently announced the release of its final guidance ahead of the full implementation of the Markets in Crypto-Assets (MiCA) regulations across the region. This significant development comes after 18 months of regulatory efforts, during which ESMA collaborated with the European Banking Authority (EBA) to develop over 30 Technical Standards and Guidelines.
Strengthening Market Oversight
- Focus on tackling market abuse in crypto markets
- Structured reporting format for suspected abuse
- Establishing protocols for cross-border cooperation
- Equipping authorities with tools to identify market manipulation
- Addressing reverse solicitation and engagement with clients
The guidance provided by ESMA aims to equip authorities with the necessary tools to identify market manipulation effectively and enforce penalties. It addresses areas such as reverse solicitation, outlining conditions for engagement with clients, and setting guidelines for suitability assessments to ensure tailored advice for investors.
MiCA Implementation Phases
- First phase targeting stablecoins
- Second phase focusing on broader crypto industry regulations
- Addressing crypto-asset operations, market integrity, and investor protections
Europe’s MiCA regulation is set to take full effect at the end of this month, with the first phase already in place targeting stablecoins. The second phase will cover a broader range of regulations concerning crypto-asset operations, market integrity, and investor protections.
ESMA believes that its final guidance will support the consistent and effective implementation of MiCA regulations across the region. However, ESMA Chair, Verena Ross, emphasized the importance of investors understanding the risks associated with the crypto-assets market, despite the new regulatory regime.
