mica

The second round of draft regulatory measures for the Markets in Crypto-Assets Regulation (MiCA), encompassing Level 2 and Level 3 provisions, was separately disclosed by ESMA and the EBA in October 2023

Overview on MiCA

MiCA, as a regulatory framework, constitutes a directly effective European Union Level 1 legislative instrument, aimed at introducing and harmonizing the regulatory landscape for crypto-assets and crypto-asset service providers (CASPs) within the European Union, specifically addressing those entities not covered under existing EU financial services regulations.

MiCA necessitates the development of several Level 2 and Level 3 legislative measures at the EU level, including Regulatory Technical Standards (RTS), Implementing Technical Standards (ITS), and Guidelines, under the new regulatory framework. The responsibility of devising these MiCA Level 2 and Level 3 measures has been entrusted to the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA).

Regulatory updates

July 12, 2023

The initial set of MiCA consultations commenced on July 12, 2023. ESMA released its first of three consultation packages, comprising draft technical standards consisting of five RTS and two ITS. In this initial package, ESMA sought input on proposed regulations pertaining to CASPs, with a focus on authorization procedures, identification protocols, and conflict of interest management, as well as the handling of complaints by CASPs.

Simultaneously, on the same date, the EBA also published its first of three consultation packages. This package included draft technical standards related to the authorization of asset-referenced tokens (ARTs), the assessment of proposed acquisitions of qualifying holdings in ART issuers, and procedures for handling complaints by ART issuers.

October 5, 2023

ESMA subsequently released a second MiCA consultation package on October 5, 2023. This package encompasses eight sets of technical standards, including six draft RTS and two draft ITS, with the proposed text outlined in Annex II of the consultation paper. These standards cover various aspects such as sustainability indicators, measures to ensure continuity and regularity in the performance of crypto-asset services, trade transparency, order book records, record-keeping by CASPs, data required for white paper classification, standard forms and templates for crypto-asset white papers, and technical means for public disclosure of inside information. The consultation period for these measures will extend until December 14, 2023.

 

October 20, 2023

On October 20, 2023, the EBA issued its second batch of consultation papers, presenting draft technical standards and guidelines. These materials cover topics such as the approval process for ART white papers issued by credit institutions (ART White Papers), governance arrangements for remuneration policies (Remuneration Policy Governance Arrangements), and governance arrangements for issuers of ARTs (Issuers of ARTs Governance Arrangements).

  • The draft RTS for ART White Papers aims to harmonize the approval procedure across the EU, outlining steps and timeframes to be followed by credit institutions and competent authorities during the approval process.
  • The Remuneration Policy Governance Arrangements RTS focus on ensuring that remuneration policies do not compromise effective risk management and align with regulatory objectives.
  • The Issuers of ARTs Governance Arrangements Guidelines address governance structures, risk culture, and third-party entity relationships for issuers of ARTs.

The consultation period for these EBA materials will be in effect until January 22, 2024.

What is next:

  • ESMA intends to publish a final report based on the feedback received and submit the draft technical standards to the European Commission for endorsement by June 30, 2024.
  • ESMA is also planning to release a third consultation package in the first quarter of 2024.
  • The EBA, on the other hand, is set to publish its third MiCA consultation package in November 2023.

Cyprus Corporate Services Simplified

At MariCorp we target to simplify Corporate Services as a whole and offer our clients a straightforward and simple solution.

Let's Talk

Contact us

Where to find us:

81, Griva Digeni Avenue, MARINOS Court, 2nd floor, office 203

P.O. BOx  42656, P.C. 6501, 6043

Larnaca – Cyprus

Tel: +357 24663402 , Fax: +357 24663409

E-mail: admin@cyprusconsultancy.com


    By clicking send below, you consent to allow MARICORP CYPRUS CONSULTANCY LIMITED to store and process the personal information submitted above to provide you the content requested.