19. Juli 2024

ESMA to Launch MiCA Rollout: 3 Consultations to Begin in July

• The European Markets in Crypto-Assets (MiCA) regulation was agreed upon in the European Parliament on April 20.
• ESMA will be launching three consultations throughout the next year with the first starting on June 16.
• ESMA must conclude its consultations by the end of Q1 2024 before the first stage of MiCA’s roll-out can begin.

What is MiCA?

The European Markets in Crypto-Assets (MiCA) regulation was agreed upon in the European Parliament on April 20. It is a groundbreaking piece of global crypto law that sets out to regulate digital assets and crypto assets within Europe.

ESMA’s Role

The European Securities and Markets Authority (ESMA) are responsible for rolling out this regulation and have published a timeline with three upcoming consultations, beginning on June 16th. They are responsible for developing regulatory technical standards and guidelines for various areas, such as authorization, governance, conflicts of interest, complaint-handling procedures and criteria to decide when a crypto-asset should be considered a financial instrument under MiFID versus MiCA. ESMA is also tasked with making Bitcoin environmentally sustainable after debates around banning it due to its environmental impact.

Timeline

The three consultations by ESMA will take place in July, October, and the final one in Q1 of 2024. To begin implementation, ESMA must conclude their consultations before the end of Q1 2024 before Title III – regarding ‘Asset-Referenced Tokens’ – can come into force. By December 2024 it is expected that MiCA will be fully operational across Europe.

Stakeholders Involved

For successful implementation of MiCA relevant stakeholders should be involved throughout each step of this process – from consultation to entry into force – including national regulators who will have responsibility for enforcing compliance with MiCA locally within their respective countries once it comes into effect across Europe as a whole.

Conclusion

MiCA marks an important milestone for cryptocurrency regulations worldwide and has been welcomed by both industry insiders and governmental authorities alike who understand its potential to create clarity within digital asset markets while protecting investors from fraudulent activities or other malpractices associated with these assets types . With ESMA’s planned consultations commencing soon, we can expect further progress towards full enforcement over the coming months leading up to December 2024 .