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. 

June 2025 Malta Financial Services Authority

The Malta Financial Services Authority held a recent workshop for cryptoasset service providers (CASPs) on MiCA Requirements on Market Conduct and the MFSA Expectations.

The event brought together several market participants, including licensed and prospective entities, legal and compliance professionals, and regulatory experts. 

Key highlights from the workshop included:

  • Conflict of Interest Management: CASPs were reminded that identifying and disclosing conflicts of interest alone is not sufficient. They must implement measures to prevent and manage these conflicts in practice, beyond mere disclosure.
  • Client Best Interest and Best Execution: CASPs are expected to act in their clients’ best interests during trade execution. This includes a comprehensive assessment of factors such as price, cost, speed, execution likelihood, and settlement reliability. The MFSA emphasised that best execution is not solely about obtaining the best price, but also about optimising overall client outcomes through a holistic approach.
  • Marketing and Communication Standards: All marketing material should be fair, clear, and not misleading. In addition, transparency around promotions and incentives is essential, including clearly outlined conditions. Incentives must be proportionate, relevant to the service or product, and not of substantial value.
  • Compliance Function: The MFSA stressed the importance of a permanent, effective, and independent compliance function within CASPs, as a critical pillar of sound governance and regulatory adherence.
  • Website Disclosures and Best Practice: As a best practice, regulatory and risk disclosures should be prominently included in the footnotes across all pages of CASPs’ websites. During the event, reference was also made to the recent thematic review of CASP websites which the MFSA has undertaken, and which findings were issued in a Dear CEO Letter to the sector.

Other topics were also addressed during the workshop, namely, Reverse Solicitation, Advisory and Portfolio Management, Transfer Services and Complaints Handling.

June 2025 Autorité des marchés financiers

Following the entry into force of the MiCA ordinance and the implementing decree amending French law, the Autorité des marchés financiers (AMF) is amending its doctrine on the regime for digital asset service providers (DASPs) to take into account the entry into force of MiCA concerning cryptoasset service providers (CASPs).

June 2025 Malta Financial Services Authority

The Malta Financial Services Authority issued a Circular that provides an updated version of the Markets in Crypto-Assets (MiCA) Rulebook, which applies to entities falling within scope of the Markets in Crypto-Assets Act, along with amendments to Chapter 3 of the Financial Institutions Rulebook (‘FIR/03’) which applies in part to issuers of e-money tokens.

The rules which have been added or updated seek to apply MiCA Level 2 and Level 3 requirements or clarify the process which should be followed by applicant’s and/or Authorised Persons when submitting certain notifications to the Authority. All amendments are immediately applicable upon publication  of the updated rules. 

June 2025 European Banking Authority

The European Banking Authority (EBA) published a No Action letter advising the EU Commission, EU Council and EU Parliament to ensure that, in the long term, "EU law needs to avoid a dual authorisation under two pieces of EU law for the activity of transacting electronic money tokens (EMTs)." 

While the existing Payment Services Directive 2 (PSD2) still applies, the letter advises "national competent authorities (NCAs) to enforce authorisation of PSD2 for a specified subset only of cryptoasset service providers (CASPs) that transact EMTs, to do so only after a transition period that ends on 2 March 2026, and then to deprioritise specified PSD2 provisions."

May 2025 European Central Bank

The European Central Bank published 'Just another crypto boom? Mind the blind spots', which analyses recent developments in crypto markets and their growing interconnectedness with the traditional financial sector.

The special report is part of the Financial Stability Review, May 2025.

May 2025 Malta Financial Services Authority

The Malta Financial Services Authority published a Dear CEO letter regardinga  supervisory review of cryptoasset service providers’ website.

April 2025 Commission de Surveillance du Secteur Financier (CSSF)

The CSSF published Circular CSSF 25/888 'Application of the Guidelines of the European Securities and Markets Authority on the procedures and policies, including the rights of clients, in the context of transfer services for cryptoassets under the Markets in Crypto Assets Regulation (ESMA35-1872330276-2032).

April 2025 European Securities and Markets Authority (ESMA)

ESMA published the opening statement by Executive Director Natasha Cazenave, given at the ECON hearing on cryptoassets and financial stability, 8 April 2025.

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