The European Union’s financial watchdog will launch a three-part consultation process for the recently adopted Markets in Crypto-Assets framework, or MiCA.
In a notice posted to the European Securities and Markets Authority (ESMA) website on June 12, regulators said the consultation packages would cover the authorization, governance, conflicts-of-interest and complaint-handling procedures of MiCA starting in July 2023. The measures will be subject to approval by the European Commission, European Parliament and European Council.
The first consultation package will include technical standards on the application of crypto asset service providers in the EU, as well as procedures for handling complaints and disclosing potential conflicts of interest. The second, expected to start in October, will consider disclosures of information to investors, governance requirements for crypto firms, and “sustainability indicators and adverse impacts on climate.”
#MiCA enters into force at the end of June.
️ To begin implementation, #ESMA with relevant stakeholders will launch 3⃣ public consultations in July, October & Q1 2024 → https://t.co/AvePQSapZp.
Details on the duration of each public comment period. pic.twitter.com/QFlERttwxR
— ESMA – EU Securities Markets Regulator (@ESMAComms) June 12, 2023
According to ESMA, the final consultation, expected in the first quarter of 2024, may consider investor protection and rules to counter market abuse. The MiCA framework suggested a roughly 18-month timeline to fully take effect, with all rules applying beginning in December 2024.
Related: Ripple welcomes MiCA regulation as US lawsuit highlights lack of clarity
After first being proposed by the European Commission in September 2020, the Economic and Financial Affairs Council of the European Union approved MiCA in a May 2023 vote. ESMA said the framework had “entered into force” as of June, but regulators and lawmakers seem to be going through proposals aimed at ensuring a smooth implementation of the crypto-focused legislation.
At a time when crypto industry leaders are considering in which jurisdictions to conduct business, regulatory clarity of digital assets is often at the forefront of discussions. MiCA aims to create a consistent regulatory framework for crypto among EU member states, while United States officials have been criticized for taking a “regulation by enforcement” approach.
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