Originally published on: December 17, 2024
The European Securities and Markets Authority (ESMA) has just published its conclusive guidance report to aid member states in their transition to the Markets in Crypto-Assets (MiCA) regulation.
MiCA regulations have been gradually taking effect since June 2024, with the final cut-off set for Dec. 30. The recent guidance release from ESMA aims to support member states that are still striving to achieve regulatory clarity as they approach the deadline.
According to a report by Cointelegraph, the stablecoin market has seen significant growth following the introduction of MiCA guidelines. However, as of December 10, several EU member states, including Belgium, Italy, Poland, Portugal, Luxembourg, and Romania, have expressed challenges meeting the end-of-year deadline due to uncertainties and a lack of clear regulations outlined in the initial MiCA documents.
The ESMA’s final guidance report, following an extensive commentary period involving numerous member states and stakeholders, addresses 12 distinct concerns. The focus is mainly on clarifying the classification and legal use of specific assets under MiCA regulations. The report highlights potential legal uncertainties arising from differing interpretations of the guidelines by national competent authorities across member states.
To tackle these uncertainties, ESMA has included explanatory scenarios covering various aspects of digital asset regulation. However, the report clarifies that real-world examples were not provided, as the guidelines cannot offer opinions on the classification of specific cryptocurrencies or similar assets.
Furthermore, concerns regarding the applicability of the EU’s Markets in Financial Instruments Directive II (MiFID II) guidelines to crypto assets have been addressed in the guidance report. Member states are pushing for an updated definition of crypto assets as financial instruments under MiFID II, seeking clarity without altering the current definition of financial instruments.
Despite being the Final Guidance Report before the Dec. 30 deadline, ESMA emphasizes in the 49-page document its commitment to ongoing collaboration with lawmakers and stakeholders to bring about further clarity without changing the existing regulations.
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