On October 5, the European Securities and Markets Authority (ESMA), the regulatory body responsible for overseeing markets in the European Union (EU), released its second consultation paper concerning the authorization of Markets in Crypto-Assets (MiCA).
In this extensive 307-page document, ESMA invites input from stakeholders regarding five key aspects of MiCA regulation. These areas encompass sustainability indicators for distributed ledgers, disclosure of inside information, technical requirements related to white papers, trade transparency measures, and the role of Crypto-Asset Service Recordkeeping Providers (CASP).
Regarding sustainability indicators, ESMA is interested in quantifiable data such as energy consumption, greenhouse gas emissions, and waste generation associated with crypto assets. They also seek qualitative insights into the environmental impact of the equipment used by blockchain network nodes.
In terms of post-trade transparency, ESMA suggests that CASPs should be obligated to report specific details such as trade and release dates, crypto-asset identification, pricing information, trading volume, execution location, and transaction ID. ESMA further proposes that CASPs be granted the flexibility to store transaction data in a format they find most suitable, as long as they can convert it into a specified format when requested by regulatory authorities.
ESMA intends to compile feedback from stakeholders and subsequently issue a final report. By June 30, 2024, they plan to submit a draft technical standard to the European Commission. Before this, however, a third advisory package is expected to be released in the first quarter of 2024.
ESMA had previously published a consultation document in July, outlining requirements for cryptocurrency companies registered under MiCA. These companies would need to provide additional information through notifications to their respective national competent authorities within the country of their registration.
