EU financial regulators are to launch a three-part consultation process on the recently adopted Framework for Markets in Cryptoassets, or MiCA.
In a notice posted to the European Securities and Markets Authority (ESMA) website on June 12, the regulator said that from July 2023, the consultation package will cover MiCA's mandate, governance, conflicts of interest and complaints-handling procedures. The measures will be approved by the European Commission, the European Parliament and the European Council.
The first consultation package will include technical standards to be applied by EU crypto asset service providers, as well as procedures for handling complaints and disclosing potential conflicts of interest. The second, expected to begin in October, will consider disclosures to investors, governance requirements for Crypto companies, and “sustainability metrics and adverse climate impacts.” Final consultations, expected in the first quarter of 2024, may consider investor protection and anti-market abuse rules, according to ESMA. The MiCA framework proposes approximately 18 months to come into full effect, with all rules to come into force in December 2024.
After first being proposed by the European Commission in September 2020, the EU Economic and Financial Affairs Committee approved the MiCA in a May 2023 vote. ESMA said the framework “went into force” in June, but regulators and lawmakers appear to be considered ring proposals aimed at ensuring the smooth implementation of crypto-focused legislation.
Regulatory clarity on digital assets is often at the forefront of discussions as crypto industry leaders consider which jurisdictions to operate in. MiCA aims to create a consistent regulatory framework for cryptocurrencies among EU member states, while US officials h ave been criticized for their approach to "enforcement" regulation."
