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MiCA

A provisional agreement was reached between the Council presidency and the European Parliament on the Markets in Crypto-Assets Regulation (MiCA). The proposal includes obligations on cryptoasset issuers as well as service providers. The aim of this new framework is to protect investors and preserve financial stability, while also fostering innovation and the attractiveness of the crypto-asset sector. This regime provides the first regulatory framework at EU level. Under this new framework, service providers have to follow strict requirements to protect consumers and liability is imposed in case they lose investors’ cryptoassets. There is also the classification of tokens that currently do not fall under existing EU financial services legislation. MiCA includes information on environmental and climate footprint as well, with the European Commission required to provide a report on the environmental impact of crypto-assets and the introduction of mandatory minimum sustainability standards for consensus mechanisms after two years.

January 2025 European Banking Authority / European Securities and Markets Authority (ESMA)

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published a Joint Report on recent developments in cryptoassets, analysing decentralised finance (DeFi) and crypto lending, borrowing and staking. 

The publication is the EBA and ESMA’s contribution to the European Commission’s report to the European Parliament and Council under Article 142 of the Markets in Crypto-Assets Regulation (MiCA).

January 2025 European Banking Authority

The European Banking Authority (EBA) published a Consultation Paper on its draft Regulatory Technical Standards (RTS) to specify the technical elements necessary for institutions to calculate and aggregate cryptoasset exposures in relation to the prudential treatment of such exposures. 

These RTS will "address implementation aspects and ensure harmonisation of the capital requirements on cryptoassets exposures by institutions across the EU."

Deadline for comments is 8 April 2025.

January 2025 Malta Financial Services Authority

The Malta Financial Services Authority (MFSA) launched a Consultation Document on the new Cryptoasset Service Provider Return (‘CASP Return’), a tool designed for the "collection of data essential to the authority's supervisory activities."

The Consultation Document is being issued in response to the entry into force of The Markets in Crypto-Assets Act, which transposes and aligns with the Markets in Crypto-Assets Regulation (MiCA). 

MFSA also published Guidance Notes which have been formulated to assist in the "accurate and efficient compilation of the CASP Return".

Deadline for feedback to the consultation is 31 January 2025.

December 2024 European Banking Authority

The European Banking Authority (EBA) published its final Guidelines on reporting requirements under the Markets in Crypto-assets Regulation (MiCA) to ensure that Competent Authorities receive sufficient comparable information to supervise compliance of issuers with MiCA requirements and provide the EBA with the information necessary to conduct the significance assessment under MiCA.

December 2024 European Securities and Markets Authority (ESMA)

The European Securities and Markets Authority (ESMA) published the last package of final reports containing regulatory technical standards and guidelines ahead of the full entry into application of the Markets in Crypto Assets Regulation (MiCA). 

The package contains: 

  • Regulatory Technical Standards on market abuse that specify systems and procedures to prevent and detect market abuse in cryptoassets, the template for reporting suspected market abuse in cryptoassets as well as coordination procedures between competent authorities for the detection and sanctioning of cross-border market abuse situations. These rules will enable supervisors to address suspicions of market abuse and follow up with enforcement actions where necessary.
  • Guidelines on reverse solicitation that confirm ESMA’s previous message that the reverse solicitation exemption should be understood as very narrowly framed and should be regarded as the exception and not be used to circumvent MiCA requirements. This exemption only applies to cases where the client is the exclusive initiator of the service. Guidance is provided on the limited circumstances where this may be the case.
  • Guidelines on suitability that specify how cryptoasset service providers (CASPs) providing advice on cryptoassets or portfolio management of cryptoassets have to give suitable recommendations to their clients or make suitable investment decisions on their behalf. These rules are aligned with the MiFID II requirements so that CASPs providing advice both under MiFID II and MiCA would be subject to similar requirements.
  • Guidelines on cryptoasset transfer services that aim at ensuring investor protection for clients transferring cryptoassets, by specifying the policies and procedures that CASPs should have in place.
  • Guidelines on qualification of cryptoassets as financial instruments who provide conditions and criteria for the qualification of crypto-assets as financial instruments. The guidelines aim to provide more clarity about the delineation between the respective scopes of application of MiCA and other sectoral regulatory frameworks (notably MiFID II).
  • Guidelines on the maintenance of systems and security access protocols that apply to offerors and persons seeking admission to trading who are not subject to the same operational resilience standards under MiCA and DORA as their CASP and issuer counterparts. Therefore, the guidelines provide for a streamlined set of principles for entities in scope to manage their ICT risks.

Links to the reports:

Final Report on the Guidelines on reverse solicitation under the Markets in Crypto Assets Regulation (MiCA)

Final Report on the Guidelines specifying certain requirements of the Markets in Crypto Assets Regulation (MiCA) on investor protection – third package

Final Report on the Guidelines specifying Union standards on the maintenance of systems and security access protocols for offerors and persons seeking admission to trading of crypto-assets other than asset referenced tokens and e-money tokens

Final Report on the Draft technical Standards specifying certain requirements in relation to the detection and prevention of market abuse under the Markets in Crypto Assets Regulation (MiCA)

Final Report on the Guidelines on the conditions and criteria for the qualification of crypto-assets as financial instruments

ESMA releases last policy documents to get ready for MiCA - Press Release

December 2024 European Securities and Markets Authority (ESMA)

ESMA published a statement on the Markets in Crypto-Assets Regulation (MiCA) transitional measures.

December 2024 European Commission

On 17 December 2024, European Commission adopted the Delegated Regulation on regulatory technical standards which supplements the European regulation on Markets in Crypto-Assets (MiCA). 

The delegated regulation specifies the content, methodologies and presentation of information in white papers in relation to sustainability and the adverse impacts on the environment and  climate. The next step is for the  Regulation to be published in the Official Journal of the European Union and will be entered into force 20 days later. 

December 2024 Commodity Futures Trading Commission (CFTC) / European Banking Authority / European Central Bank / European Commission / European Insurance and Occupational Pensions Authority (EIOPA) / Federal Reserve / Office of the Comptroller of the Currency / U.S. Department of the Treasury / U.S. Securities and Exchange Commission (SEC)

The U.S. Department of the Treasury published a joint statement on the EU-U.S. Joint Financial Regulatory Forum, which took place on 4-5 December 2024.

EU participants included representatives of the European Commission, European Banking Authority (EBA), European Securities and Markets Authority (ESMA), European Insurance and Occupational Pensions Authority (EIOPA), European Central Bank (ECB), and Single Resolution Board (SRB).

U.S. participants included representatives from the U.S. Department of the Treasury and staff from independent regulatory agencies, including the Federal Reserve Board (FRB), Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), and Consumer Financial Protection Bureau (CFPB).

The Forum emphasised ongoing U.S. and EU cooperation in a range of areas and focused on seven themes: (1) market developments and financial stability; (2) operational resilience and digital finance; (3) the sharing and financial reporting of financial data; (4) anti-money laundering and countering the financing of terrorism (AML/CFT); (5) sustainable finance; (6) banking and insurance; and (7) capital markets.  

Agency participation varied across themes, with representatives expressing views on issues in their respective areas of responsibility.

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