ESMA to Initiate Consultations on Crypto Rules in EU
The European Securities and Markets Authority (ESMA), the European Union's securities market regulator, has announced a consultation set for July regarding new regulations for handling complaints and conflict of interest issues that cryptocurrency companies within the bloc would need to comply with.
The announcement, available on the regulator's website, details the forthcoming introduction of these potential regulatory changes.
In the upcoming month, ESMA will unveil proposals on the practical application of the EU's new Markets in Crypto Assets (MiCA) rules. These include the specific forms and notifications that cryptocurrency companies, as well as established funds, must follow to provide services within the EU.
Subsequent consultations are also scheduled. One slated for October will explore environmental impact disclosures and might extend to trading transparency and governance requirements. Early 2024 will see another consultation focused on market abuse and investor protection, according to ESMA.
After lengthy discussions, MiCA was published in the EU's official journal last Friday. Starting at the end of next year, this regulation will permit cryptocurrency exchanges to operate across the EU with a single license. Additionally, rules mandating stablecoin issuers to maintain appropriate reserves will come into effect in June 2024. Industry insiders have indicated that the practical implementation of these rules, under subsidiary legislation, could play a crucial role.
Further procedural rules are expected from ESMA's counterpart, the European Banking Authority (EBA). The EBA will be tasked with setting capital requirements and supervising significant stablecoins. These forthcoming regulations reflect the EU's proactive approach towards establishing a regulatory framework for the rapidly evolving cryptocurrency sector.
In the upcoming month, ESMA will unveil proposals on the practical application of the EU's new Markets in Crypto Assets (MiCA) rules. These include the specific forms and notifications that cryptocurrency companies, as well as established funds, must follow to provide services within the EU.
Subsequent consultations are also scheduled. One slated for October will explore environmental impact disclosures and might extend to trading transparency and governance requirements. Early 2024 will see another consultation focused on market abuse and investor protection, according to ESMA.
After lengthy discussions, MiCA was published in the EU's official journal last Friday. Starting at the end of next year, this regulation will permit cryptocurrency exchanges to operate across the EU with a single license. Additionally, rules mandating stablecoin issuers to maintain appropriate reserves will come into effect in June 2024. Industry insiders have indicated that the practical implementation of these rules, under subsidiary legislation, could play a crucial role.
Further procedural rules are expected from ESMA's counterpart, the European Banking Authority (EBA). The EBA will be tasked with setting capital requirements and supervising significant stablecoins. These forthcoming regulations reflect the EU's proactive approach towards establishing a regulatory framework for the rapidly evolving cryptocurrency sector.
