With its new crypto regulatory regime due to take effect at the end of the year, the European Securities and Markets Authority (ESMA) published a series of papers on Tuesday setting out final standards and guidance for the new Markets in Crypto Assets Regulation (MiCA) regime.<\/p>\n
To implement the new crypto rules, ESMA developed more than 30 sets of technical standards and guidance in cooperation with the European Banking Authority.<\/p>\n
Among other things, the papers include regulatory standards on market abuse that specify the systems and procedures required to prevent and detect market abuse in cryptoassets, including procedures to ensure co-operation in the detection and sanctioning of cross-border cases.<\/p>\n
“These rules will enable supervisors to address suspicions of market abuse and follow up with enforcement actions where necessary,” ESMA said in a release.<\/p>\n
It also includes guidance on suitability requirements that sets out how firms that provide advice on cryptoassets or portfolio management of cryptoassets have to give suitable recommendations or make suitable investment decisions on clients’ behalf.<\/p>\n
Further, ESMA provided guidance on cryptoasset transfer services that aim to ensure investor protection when crypto is being transferred, along with guidance on exemptions and detailing the conditions and criteria for crypto to qualify as financial instruments (drawing the line between crypto rules and the existing trading rules).<\/p>\n
\u201cThe entry into force of the MiCA regime [on Dec. 30] marks a significant step towards having a regulatory framework for the crypto market in place,” said Verena Ross, ESMA chair, in a release.<\/p>\n
“Nevertheless, it is crucial to recognize that the new regime would not suffice to eliminate the inherent uncertainty and volatility in the cryptoassets market, and investors should fully understand the risks before engaging in this space.”<\/p>\n
Looking ahead, ESMA said its focus will be on collaborating with local regulators to ensure that the new regime’s provisions are fully implemented and subject to harmonized enforcement.<\/p>\n","protected":false},"excerpt":{"rendered":"
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