EU regulator announces the first round of crypto-asset-related regulations based on MiCA | CoinDesk JAPAN | CoinDesk Japan

The European Securities and Markets Authority (ESMA) has issued a decision on how to authorize cryptocurrency (virtual currency) companies in the EU, the first use of new powers under the European Union’s (EU) Crypto Asset Market Regulation Act (MiCA). released a series of detailed proposals.

ESMA’s 160-page proposal includes how crypto companies should handle user complaints and how they should manage conflicts of interest.

MiCA, which will come into force in 2024, will allow wallet providers and exchanges, known as crypto service providers or CASPs, to operate across the EU27 under a single license, creating stables linked to the value of other assets. Set coin reserve requirements. Although the law was largely agreed by June 2022, ESMA has clearly been affected by subsequent allegations of poor governance and security in the crypto sector, including FTX’s bankruptcy filing in November. there is

“Some of the recent collapses in the crypto world demonstrate misuse of customer funds and crypto assets,” the document states. “Media-reported hacking attacks on CASP often lead to the theft of significant amounts of customers’ crypto assets.”

ESMA is also asking for confidential information on cryptocurrency companies’ projected earnings, number of white papers, and use of on-chain and off-chain transactions in a consultation that will run until September 20.

According to ESMA, further consultations are scheduled in October to cover sustainability and recordkeeping, and early 2024 will see when crypto-assets will be considered securities and how foreign companies will be able to provide EU clients with a set of rules. A final consultation is scheduled to consider whether the service will be able to be provided in this way.

According to the document, applicants must demonstrate that customer funds and crypto assets are segregated and not used for the company’s own accounts, as well as the security of ICT systems and underlying distributed ledger technology. It must be explained in detail.

We also identify potential conflicts of interest with our customers, such as executing orders on behalf of our customers while operating our trading platform, or accessing sensitive information held by our employees about issuers of crypto assets. also need to be managed.

The consultation will allow the European Banking Authority (EBA) to issue the MiCA rules to stablecoin issuers in time for new rules covering crypto assets tied to fiat currencies to come into effect in June 2024. It took place on the same day that prompted the anticipation.

｜Translation: CoinDesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: EU Securities Agency Issues First Batch of Detailed Crypto Rules Under MiCA Law