ESMA publishes Final Reports and Guidelines on MiCA
In December, the European Securities and Markets Authority (ESMA) has issued its final set of reports. These documents include regulatory technical standards and guidelines, marking a significant step forward in the implementation of the Markets in Crypto-Assets Regulation (MiCA).
Over the last 18 months, ESMA has been actively engaged in regulatory efforts, producing over 30 technical standards and guidelines. Many of these were developed in close partnership with the European Banking Authority (EBA).
Highlights of the final package
The published materials include:
- Regulatory Technical Standards on market abuse – These technical standards outline the mechanisms and processes required to detect and prevent market abuse in crypto-assets. They also include templates for reporting suspected cases and protocols for cross-border collaboration between regulatory authorities.
- Guidance on Reverse Solicitation – This clarifies that reverse solicitation should be applied strictly as an exception and not as a way to bypass MiCA requirements. It applies only when a service is initiated entirely by the client.
- Suitability Guidelines – These specify how crypto-asset service providers (CASPs) offering investment advice or managing portfolios must ensure their recommendations or decisions align with client needs. These requirements mirror those under MiFID II.
- Guidelines on crypto-asset transfer services – Designed to protect investors during asset transfers, these guidelines establish the procedures and policies CASPs must have in place to ensure client safety.
- Guidelines on classifying crypto-assets as Financial Instruments – These provide criteria for determining whether certain crypto-assets qualify as financial instruments, clarifying how MiCA interacts with other EU financial regulations, such as MiFID II.
- Guidelines on the maintenance of systems and security access protocols – Aimed at entities like offerors or those applying for trading admission who are not covered by MiCA and DORA’s operational resilience standards. These rules set out basic principles for managing risks related to ICT systems.
Next Steps
In the coming months, ESMA will focus on supporting national regulators to ensure a seamless transition during the implementation phase of MiCA. The guidelines will be translated into all official EU languages and published on ESMA’s website. They are set to come into force three months after the translations are made available. The final reports, including the draft regulatory technical standards, have been submitted to the European Commission for approval.
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