The European Securities and Markets Authority (ESMA) has published a consultative paper on the Markets in Crypto-Assets (MiCA) regulations, specifically focusing on technical specifications for crypto asset service providers (CASPs). The paper is the first of three consultative packages that ESMA intends to release as part of its mandate under MiCA.
Under MiCA, entities already licensed are presumed to have the capability to provide crypto-asset services. However, these entities will be required to submit additional information through notifications to the national competent authorities (NCAs) in their respective countries. The consultative paper seeks feedback on regulatory and implementing technical standards for these notifications, as well as for CASP authorization applications, conflict management, complaint handling, and disclosures to NCAs by entities planning to acquire shares in a CASP.
Respondents are invited to provide feedback on the consultative paper by September 20. The finalized standards will be submitted to the European Commission by June 30, 2024, to comply with the MiCA deadline. ESMA plans to release the second and third consultative packages in October and the first quarter of 2024, respectively.
In addition to seeking feedback, ESMA included four general questions to gain insight into respondents’ current and planned activities in the EU crypto-asset markets. These questions aim to better understand the market’s dynamics and future development, covering topics such as turnover expectations, white paper publications, and the use of on-chain and off-chain trading.
MiCA was approved by the European Parliament on April 20 and will be implemented in multiple stages throughout 2024 and 2025.