ESMA published an opinion addressing the risks presented by global crypto firms seeking authorisation under the Regulation on Markets in Cryptoassets ((EU) 2023/1114) (MiCA) for part of their activities (crypto brokerage) while keeping a large part of their group activities (intra-group execution venues) outside the EU regulatory scope.
In the opinion, ESMA provides clarification - addressed primarily to national competent authorities (NCAs) - on the risk of regulatory and supervisory arbitrage arising from multifunction cryptoasset intermediaries that structure their business in a way that enables them to only seek authorisation under MiCA for brokerage services but where they would leave a large part of their group activities (in particular the operation of a trading platform for cryptoassets) outside the scope of MiCA.
ESMA requires NCAs to make case-by-case assessments and outlines specific requirements that should be met.