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The Coin Rise 2024-12-17 21:53:16

ESMA Provides Final Guidance In MiCA Rule Implementation

The European Securities and Markets Authority (ESMA) has provided final guidance to help member states prepare for the Markets in Crypto-Assets Regulation (MiCA) . This new set of rules aims to create consistent crypto regulations across the European Union (EU) and will take effect on December 30, 2024. However, some member states still need to pass their laws and fully enforce MiCA in their areas. Details of the ESMA Report ESMA’s report highlights three key areas: reverse solicitation, draft technical standards for preventing market abuse, and guidance on when crypto-assets can be a financial instrument. These guidelines aim to tackle important issues and ensure that MiCA is applied consistently across all 27 EU member countries. The section on reverse solicitation explains when service providers can connect with EU customers without actively promoting their services. This helps close regulatory gaps and protect consumers. ESMA also introduced draft technical standards to improve measures against market abuse in the crypto sector. These standards aim to stop insider trading, market manipulation, and other illegal activities that could shake investor trust. Additionally, ESMA pointed out that some crypto-assets might be classified as financial instruments based on their specific features. This classification is important because it decides if these assets are governed by MiCA or other financial rules in the EU. Meanwhile, the success of these rules depends on how ready each member state is to adopt them into their laws. ESMA and its MiCA Crypto Regulations Target The Final Report addresses several critical areas related to crypto-asset service providers (CASPs), focusing on enhancing transparency, facilitating fair competition, and safeguarding investor interests. Some critical proposals include specifications on authorization requirements, notification procedures assessment of acquisitions, and complaint handling. On authorization requirements, the ESMA listed the information required for CASP authorization. The authority aims to establish stringent criteria, ensuring the credibility and reliability of service providers in the crypto space. It also mandated that financial entities intending to offer crypto-asset services provide specific information as part of their notification process. This enables regulatory oversight and compliance with established standards. MiCA’s Stablecoin Regulation MiCA, which was passed into law in May 2023, represents a comprehensive regulatory framework for digital assets within the European Economic Area (EEA). Recall that MiCA stablecoin regulation came into force in June 2024. This regulation imposed stringent requirements on fiat-backed stablecoins, with reserves held in custody by a third party and segregated by other assets. The European Banking Authorities (EBA) now oversees token regulations, taking over from national authorities. Stablecoin issuers within the EU must now hold licenses as credit institutions or Electronic Money Institutions under the MiCA framework. The post ESMA Provides Final Guidance In MiCA Rule Implementation appeared first on TheCoinrise.com .

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