The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator, has released updated regulatory technical standards and guidelines ahead of the full application of the Markets in Crypto Assets Regulation (MiCA).
The rules are set to come into effect on December 30 this year, across the 27-member bloc.
“The entry into force of the MiCA regime from 30 December 2024 marks a significant step towards having a regulatory framework for the crypto market in place,” said Verena Ross, chair of ESMA.
“It is crucial to recognize that the new regime would not suffice to eliminate the inherent uncertainty and volatility in the crypto-assets market, and investors should fully understand the risks before engaging in this space,” warns Ross.
Framework for Crypto-Asset Markets Addresses Market Abuse
MiCA is providing a framework for crypto-asset markets aimed at addressing concerns related to market abuse, investor protection, and operational resilience.
The regulator said over the past 18 months, ESMA, in collaboration with the European Banking Authority (EBA), has developed over 30 technical standards and guidelines to ensure smooth implementation.
The updated rules include Regulatory Technical Standards on market abuse, outlining systems and procedures to detect and prevent abuse in crypto-asset markets.
These standards also provide reporting templates for suspected market abuse and detail coordination procedures for addressing cross-border enforcement issues.
“MiCA Regulation is Far From Complete,” Says Ex-Ripple Exec
In a recent interview with CryptoNews, Tom Kiddle, co-founder of Palisade and former Ripple executive, shared insights on the EU’s MiCA regulation. While MiCA is being hailed for the clarity it brings to the market, Kiddle raised important concerns.
From the question of whether MiCA offers sufficient protection for retail investors, to the gap in regulation for NFTs and decentralized finance (DeFi), Kiddle believes regulation is a significant first step.
With geopolitical tensions rising and cryptocurrency being scrutinized as a tool for money laundering, global regulatory cooperation will be essential for the future of crypto assets.
The EU’s MiCA laws may provide a competitive advantage, but the global regulatory environment is still tightly fragmented.
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