ESMA Seeks Public Input on Second MiCA Regulatory Consultation Paper
Summary:
The European Securities and Markets Authority (ESMA) issued a second discussion paper on the Markets in Crypto-Assets (MiCA) regulations seeking public input on sustainability indicators for distributed ledgers, disclosures of inside information, white paper standards, trade transparency, and record-keeping for crypto-asset service providers (CASPs). The ESMA will compile feedback into a final report and draft technical standards for submission to the European Commission by June 30, 2024, and plans a third consultation in Q1 2024.
On October 5, the European Union's financial markets watchdog, the European Securities and Markets Authority (ESMA), issued a second discussion paper regarding the forthcoming Markets in Crypto-Assets (MiCA) regulations. This detailed 307-page report invites input on five specific topics within MiCA: distributed ledger sustainability indicators, inside information disclosure, white paper technical standards, trade transparency protocols, and record maintenance practices for crypto-asset service providers (CASPs).
For sustainability, the ESMA includes elements such as power usage, greenhouse effect emissions, and waste generation within its quantitative measures, alongside a subjective analysis of how blockchain node equipment usage can impact natural resources. In terms of post-trade transparency, the ESMA puts forward a proposal that CASPs should disclose essential information like trading and publication timestamps, crypto-asset identification, price data, quantities, trading location, and transaction IDs.
As mentioned in the related news, the European Banking Authority has urged the early adoption of standardized stablecoin regulations. Furthermore, the ESMA proposes allowing CASPs to manage transaction data storage in their preferred format, so long as they can adapt it to a predefined layout if regulatory bodies demand this.
The ESMA's final report, compiled from responses received, and draft technical standards will be shared with the European Commission by the end of June 2024. However, a third round of consultation will precede this in the first quarter of 2024.
The ESMA's former consultation paper, released in July, suggested that crypto businesses required to register under MiCA should additionally supply notification-based information to the National Competent Authorities (NCAs) of their registration jurisdictions.
Published At
10/6/2023 8:55:00 AM
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