ESMA Unveils Timeline for MiCA Crypto Oversight Rules


The European Securities and Markets Authority (ESMA)
is gearing up for the implementation of the Markets in Crypto-Assets Regulation
(MiCA). This regulation marks an important step in ushering in a new era of
oversight for digital assets.

As ESMA gears up for the implementation of the MiCA
regulation, the regulator has established a comprehensive plan to tackle
crypto-related risks and establish a regulatory framework for the digital asset
space. However, the watchdog has warned that the MiCA regulation is not a
foolproof safe haven for investors.

MiCA, effective from June 2023, brings with it
several measures in its three levels of implementation, spanning within a
timeframe of 12 to 18 months. ESMA, working closely with EBA, EIOPA, and the
ECB, engages in a public consultation process. The regulator has unveiled a
sequence of technical standards in three comprehensive packages.

These measures, encompassing authorization,
governance, conflict resolution, and complaint-handling procedures, form the
backbone of a regulatory architecture aimed at fortifying the crypto ecosystem.
The first package, set to launch in July 2023, dives into the nitty-gritty of
mandates such as notification content, application for authorization, and complaint-handling
procedures.

The subsequent packages, slated for October 2023 and
Q1 2024, gradually unfold to cover a spectrum of critical mandates, each
contributing to the holistic regulation of crypto-assets. As the ESMA‘s
consultation process unfolds, market participants await the clarity and
certainty that MiCA promises to bring.

With sustainability indicators, business continuity,
trade transparency, and investor protection in the spotlight, the crypto
industry braces for a transformative period. As these regulatory measures take
shape, investors, businesses, and regulators must navigate the evolving
landscape, ensuring a secure and compliant future for crypto-assets in the
European market.

Last year, crypto fraud witnessed a remarkable decline of 51%, signaling a significant shift attributed to the Market in
Crypto Asset (MiCA) regulations. According to a report by AU10TIX, these
regulations have not only tightened the reins on illicit activities within the
crypto space but have also inadvertently redirected the attention of
cybercriminals towards the payments sector.

As MiCA continues to fortify the crypto market
against fraudulent activities, its repercussions are felt in the payments
sector, with a staggering 56% increase in fraud cases. Despite the positive
impact of MiCA on crypto fraud, the ESMA has cautioned that the regulations
will not protect retail investors until December 2024.

The European Securities and Markets Authority (ESMA)
is gearing up for the implementation of the Markets in Crypto-Assets Regulation
(MiCA). This regulation marks an important step in ushering in a new era of
oversight for digital assets.

As ESMA gears up for the implementation of the MiCA
regulation, the regulator has established a comprehensive plan to tackle
crypto-related risks and establish a regulatory framework for the digital asset
space. However, the watchdog has warned that the MiCA regulation is not a
foolproof safe haven for investors.

MiCA, effective from June 2023, brings with it
several measures in its three levels of implementation, spanning within a
timeframe of 12 to 18 months. ESMA, working closely with EBA, EIOPA, and the
ECB, engages in a public consultation process. The regulator has unveiled a
sequence of technical standards in three comprehensive packages.

These measures, encompassing authorization,
governance, conflict resolution, and complaint-handling procedures, form the
backbone of a regulatory architecture aimed at fortifying the crypto ecosystem.
The first package, set to launch in July 2023, dives into the nitty-gritty of
mandates such as notification content, application for authorization, and complaint-handling
procedures.

The subsequent packages, slated for October 2023 and
Q1 2024, gradually unfold to cover a spectrum of critical mandates, each
contributing to the holistic regulation of crypto-assets. As the ESMA‘s
consultation process unfolds, market participants await the clarity and
certainty that MiCA promises to bring.

With sustainability indicators, business continuity,
trade transparency, and investor protection in the spotlight, the crypto
industry braces for a transformative period. As these regulatory measures take
shape, investors, businesses, and regulators must navigate the evolving
landscape, ensuring a secure and compliant future for crypto-assets in the
European market.

Last year, crypto fraud witnessed a remarkable decline of 51%, signaling a significant shift attributed to the Market in
Crypto Asset (MiCA) regulations. According to a report by AU10TIX, these
regulations have not only tightened the reins on illicit activities within the
crypto space but have also inadvertently redirected the attention of
cybercriminals towards the payments sector.

As MiCA continues to fortify the crypto market
against fraudulent activities, its repercussions are felt in the payments
sector, with a staggering 56% increase in fraud cases. Despite the positive
impact of MiCA on crypto fraud, the ESMA has cautioned that the regulations
will not protect retail investors until December 2024.





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