The European Securities and Exchange Commission (ESMA) has published its final guidance ahead of the full implementation of the law. Regulation of Markets in Crypto Assets (MiCA). According to the Dec. 17 statement across the region.
This is the culmination of an 18-month regulatory effort during which ESMA developed more than 30 standards and technical guidelines in cooperation with the European Banking Authority (EBA).
Strengthen market surveillance
A significant focus of ESMA's guidance is tackling market abuse in crypto markets. The publication includes a structured reporting format for suspected abuse and establishes protocols for cooperation between regulators across borders.
These measures are aimed at equipping authorities with tools to detect market manipulation and effectively enforce penalties.
The document also addresses reverse solicitation and outlines the conditions under which crypto-asset service providers (CASPs) can interact with clients.
In addition, it sets guidelines for suitability assessments and ensures that CASPs provide recommendations tailored to the needs of investors. ESMA emphasized alignment with existing financial regulations to promote stability in advisory services.
Meanwhile, support for investors remains in the main framework. The guidance sets out the policies that CASPs must implement to protect client transactions and the specified requirements for classifying crypto-assets as financial instruments.
MiCA implementation steps
Europe's MiCA regulations will come into full force at the end of this month. The first phase, which went into effect six months ago, targeted stablecoins.
Since launch, stablecoin issuers like Tether have faced significant problems Compliance challengesAnd as a result there is its stablecoin USDT Removed from the list On some platforms
The second phase will focus on broader regulation of the crypto industry, addressing crypto-asset operations, market integrity and investor protection.
ESMA believes that its final guidance will support the consistent and effective implementation of MiCA across the region. However, Verna Ross, head of ESMA, noted:
“It is important to recognize that the new regime is not enough to eliminate the inherent uncertainty and volatility in the crypto asset market, and investors should fully understand the risks before engaging in this space.”
