Updates to ESMA Q&A
On 2 February 2024, ESMA has published updated questions and answers regarding Regulation (EU) 2023/1114 of 31 May 2023 on markets in crypto-assets (“MiCA”).
With this update, ESMA confirmed that crypto-asset service providers (“CASPs”) established between MiCA’s entry into force (June 2022) and 30 December 2024 may to continue providing crypto-asset services (under national applicable law) until 1 July 2026 (assuming the applicable Member State allows the full duration of the grandfathering period). ESMA further confirmed that entities benefiting from grandfathering do not benefit from the EU passport (unless they were to acquire a MICA license and therefore cease to be a “grandfathered” entity. Entities benefiting from grand-fathering will be forbidden from conducting cross-border activities in Member States where the grandfathering clause is not (or no longer) applicable.
ESMA clarified that the prohibition under Article 80(2) of MiCA to receive "remuneration, discount or non-monetary benefit in return for routing orders received from clients" applies to the crypto-asset services of receiving and transmitting orders on behalf of clients as well as the execution of orders on behalf of clients.
ESMA explained that a credit institution can provide any crypto-asset services of a notification under Article 60 of MiCA and also elaborated on certain conditions related to this. Article 60 notifications should be provided to the competent authority in charge of authorising CASPs under Article 62 of MiCA. The notification may in addition be provided to the authority that authorised the relevant CASP under the relevant other EU financial legislation.
ESMA Final Report on MiCA technical standards
On 25 March 2024, ESMA published a Final Report (the “Final Report”) on the following regulatory technical standards (RTS) and implementing technical standards (ITS) specifying certain requirements of MiCA -the first package:-
- Draft RTS pursuant to Article 60(13) of MiCA
- Draft ITS pursuant to Article 60(14) of MiCA
- Draft RTS pursuant to Article 62(5) of MiCA
- Draft ITS pursuant to Article 62(6) of MiCA
- Draft RTS pursuant to Article 71(5) of MiCA
- Draft RTS pursuant to Article 84(4) of MiCA
ESMA has submitted the Final Report to the European Commission who shall decide whether to adopt the RTS and ITS within three months.
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