On March 25, 2024, the European Securities and Markets Authority (ESMA) announced the completion of its first set of rules and regulations for crypto asset service providers, under the Market in Crypto Assets (MiCA) law.

This marks a significant effort by the EU to regulate the growing crypto market, aiming to increase transparency, ensure investor safety, and clarify regulations across the EU.

ESMA's report details the requirements for crypto companies seeking to operate in the EU under MiCA. These include the necessary information for regulatory approval, details on the services offered, and how to handle customer complaints.

The report has been sent to the European Commission (EC), with ESMA ready to provide more guidance if needed.

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This follows a consultation period that started in July 2023, involving feedback from 36 entities, including confidential inputs from 10.

Moreover, ESMA has initiated its third consultation phase under MiCA, looking for public feedback on new rules. 

These rules concern the detection and reporting of market abuse in crypto assets, rights for clients of crypto-asset transfer services, and operational resilience among others. This consultation is open until June 25, 2024.

Concurrently, discussions on classifying cryptocurrencies as financial instruments have been ongoing. 

In a January 2024 consultation, ESMA suggested that cryptocurrencies that meet MiFID II's definitions should be classified as financial instruments.

This is crucial for determining whether a token can be considered a crypto asset. The public can comment on this until April 29, 2024.

ESMA's efforts reflect the EU's commitment to creating a safe, transparent, and regulated crypto market. 

By introducing these regulations and seeking public input, ESMA aims to balance innovation with investor protection in the fast-paced crypto sector.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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