ESMA publishes second consultation on crypto market rules

Summary:

The European Securities and Markets Authority (ESMA) has published a second consultation package under the Markets in Crypto-Assets Regulation (MiCA) to gather feedback from stakeholders on five sets of proposed rules. The consultation package aims to provide clarity and consistency in the regulation of crypto-asset activities in the European Union.

The proposed rules cover several areas, including:

1. Sustainability indicators for distributed ledgers: ESMA is seeking input on how to measure the sustainability of crypto-asset activities, including carbon footprint and environmental impact.

2. Disclosures of inside information: The proposed rules outline the requirements for public disclosures of inside information related to crypto-asset activities, aiming to ensure transparency and fair market practices.

3. Technical requirements for white papers: ESMA is seeking feedback on the technical requirements for white papers, including formatting, accessibility, and content standards, to ensure that investors and market participants have access to accurate and comprehensive information.

4. Trade transparency measures: The proposed rules outline measures to improve trade transparency, including the reporting of trades, public disclosure of large positions, and the prohibition of market manipulation.

5. Record-keeping and business continuity requirements for crypto-asset service providers: ESMA is proposing rules to ensure that crypto-asset service providers maintain accurate records, implement business continuity plans, and provide fair customer treatment.

Stakeholders are encouraged to provide feedback on these proposed rules by 14 December 2023. Once ESMA receives feedback, it will publish a final report and submit the draft technical standards to the European Commission for endorsement by 30 June 2024 at the latest. Additionally, ESMA plans to publish a third consultation package with the remaining 18-month mandates in Q1 2024.

This consultation package is a significant step in the implementation of MiCA, which aims to create a comprehensive regulatory framework for crypto-asset activities in the European Union. The proposed rules will help ensure the stability, security, and integrity of the crypto-asset market, while also protecting investors and preventing market manipulation.

For further information, please contact Solveig Kleiveland, Communications Team Leader, at press@esma.europa.eu.