The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has responded to the European Commission proposal to amend the Markets in crypto-assets Regulation (MiCA) Regulatory Technical Standards (RTS). ESMA acknowledges the legal limitations raised by the Commission but emphasises the importance of the policy objectives behind the initial proposal.
In the Opinion, ESMA takes note of the amendments proposed to the two RTS specifying:
the information to be included in a notification by certain financial entities of their intention to provide crypto-asset services and
the information to be included in an application for authorisation as crypto-asset service provider.
ESMA also reiterates that the final objective of these RTS is to ensure a thorough entry point assessment for applicant crypto-asset service providers (CASPs) and financial entities intending to provide crypto-asset services in the EU. This will increase the resilience of the crypto assets market and enhance investor protection in the crypto-assets space.
ESMA therefore recommends the Commission consider amendments to the MICA regulation (Level 1), namely:
requiring applicant crypto-asset service providers and notifying entities to provide the results of an external cybersecurity audit; and
including, in the assessment of the good repute of the members of the management body of applicant crypto-asset service providers, checks regarding the absence of penalties also in areas other than commercial law, insolvency law, financial services law, anti-money laundering and counter terrorist financing, fraud or professional liability.
