European Regulator Releases Final Guidance on MiCA

The European Securities and Markets Authority (ESMA) released its final guidance on Tuesday to aid member states in implementing upcoming regulations.

This final report from ESMA covers topics such as reverse solicitation, systems, the classification of certain crypto assets as financial instruments, and draft technical standards for market abuse prevention.

The European Union’s Markets in Crypto Asset (MiCA) rules, specifically designed for the crypto sector, are scheduled to take effect across the 27-nation bloc by December 30. However, some countries have not yet enacted the necessary legislation to implement MiCA.

For instance, Portugal’s central bank informed CoinDesk on Monday that it is still determining which national competent authority will oversee these rules due to the lack of passed legislation. Industry trade associations have indicated that one factor contributing to these delays for national competent authorities was the brief period between ESMA’s release of its final technical standards in October and the implementation deadline.

Verena Ross, ESMA Chair, stated that as the transitional period continues, they will provide ongoing guidance and collaborate with all National Competent Authorities (NCAs) to ensure the smooth implementation of MiCA and to foster a level playing field through supervisory convergence actions.