In a pivotal move, the European Securities and Markets Authority (ESMA) has unveiled two Consultation Papers addressing crucial aspects of the Markets in Crypto Assets Regulation (MiCA). This comprehensive initiative seeks public input on guidelines related to reverse solicitation and the classification of crypto assets as financial instruments.
Consultation on Reverse Solicitation:
ESMA is actively soliciting feedback on proposed guidance for the reverse solicitation exemption. The aim is to refine conditions and supervisory practices employed by National Competent Authorities (NCAs) to prevent circumvention. ESMA reiterates that the exemption is a narrowly framed exception, emphasizing that MiCA limitations cannot be sidestepped.
Consultation on Classification of Crypto Assets:
ESMA invites stakeholders to contribute insights into establishing precise conditions and criteria for classifying crypto assets as financial instruments. This move aligns MiCA with the Markets in Financial Instruments Directive II (MiFID II), ensuring a harmonized approach across the EU.
Proposed Guidelines: The guidelines provide NCAs and market participants with structured yet flexible criteria for crypto-asset classification, striking a balance between guidance and avoiding a rigid, one-size-fits-all approach.
Next Steps:
Stakeholders have until April 29, 2024, to provide their feedback. ESMA plans to meticulously consider the received insights, with the final report anticipated in the fourth quarter of 2024. This initiative is poised to enhance clarity and contribute to global standards in crypto-asset regulation.
Explore the consultation papers https://www.esma.europa.eu/press-news/esma-news/esma-consults-reverse-solicitation-and-classification-crypto-assets-financial and actively participate in shaping the future landscape of crypto regulation.