The European Securities and Markets Authority (ESMA) is gearing up for the implementation of the Markets in Crypto-Assets Regulation (MiCA). This regulation marks an important step in ushering in a new era of oversight for digital assets.
As ESMA gears up for the implementation of the MiCA regulation, the regulator has established a comprehensive plan to tackle crypto-related risks and establish a regulatory framework for the digital asset space. However, the watchdog has warned that the MiCA regulation is not a foolproof safe haven for investors.
MiCA, effective from June 2023, brings with it several measures in its three levels of implementation, spanning within a timeframe of 12 to 18 months. ESMA, working closely with EBA, EIOPA, and the ECB, engages in a public consultation process. The regulator has unveiled a sequence of technical standards in three comprehensive packages.
MiCA's Regulatory Roadmap
These measures, encompassing authorization, governance, conflict resolution, and complaint-handling procedures, form the backbone of a regulatory architecture aimed at fortifying the crypto ecosystem. The first package, set to launch in July 2023, dives into the nitty-gritty of mandates such as notification content, application for authorization, and complaint-handling procedures.
The subsequent packages, slated for October 2023 and Q1 2024, gradually unfold to cover a spectrum of critical mandates, each contributing to the holistic regulation of crypto-assets. As the ESMA's consultation process unfolds, market participants await the clarity and certainty that MiCA promises to bring.
Markets in Crypto-Assets Regulation ???? Why should you #BeCryptoAware? What's ESMA's role?Consumers face risks when investing in #CryptoAssets or consuming crypto services.#MiCA is no safe harbour. Crypto assets remain highly volatile and speculative.https://t.co/CYVPFJgIZx pic.twitter.com/vWGKR3vaQV
— ESMA - EU Securities Markets Regulator ???????? (@ESMAComms) January 16, 2024
With sustainability indicators, business continuity, trade transparency, and investor protection in the spotlight, the crypto industry braces for a transformative period. As these regulatory measures take shape, investors, businesses, and regulators must navigate the evolving landscape, ensuring a secure and compliant future for crypto-assets in the European market.
This article was written by Jared Kirui at www.financemagnates.com.
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