You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

ESMA Seeks Feedback on Reverse Solicitation and Crypto Classification Under MiCA

The European Securities and Markets Authority (ESMA), the primary regulatory body overseeing financial markets within the European Union, has initiated a feedback period regarding guidelines outlined in the MiCA regulation.

MiCA, or the Markets in Crypto Assets Regulation, is set to become effective this year and represents the European Union’s comprehensive legislation for the cryptocurrency industry. This legislation offers the promise of legal certainty, addressing compliance challenges, and carrying significant global implications.

Recently, ESMA introduced two consultation papers covering the topics of reverse solicitation and the classification of cryptocurrencies as financial instruments. These documents serve as a means to gather input from various stakeholders concerning the MiCA guidelines, with the goal of establishing a structured yet adaptable framework for cryptocurrency regulations. The regulator has set a deadline for stakeholders to submit their comments by April 29, 2024.

ESMA encourages all interested parties to participate in this consultation process, specifically extending invitations to crypto-asset service providers, financial entities engaged in crypto-assets, and any stakeholders with an interest in the realm of cryptocurrencies. These consultation papers reflect ESMA’s broader efforts to establish regulatory clarity around cryptocurrencies in alignment with the MiCA regulations.

Responding to Consultation Papers

ESMA’s initial consultation paper is geared towards soliciting further guidance concerning the conditions governing the application of the reverse solicitation exemption. It also seeks input regarding the supervisory measures that national competent authorities can employ to prevent its circumvention.

Article 61 of MiCA, known as the reverse solicitation exemption, is, in fact, a restriction, barring third-country firms from actively soliciting clients based in the EU.

The proposal is designed to elicit public opinions on potential vulnerabilities that third-country firms might exploit to bypass MiCA’s authorization requirements.

Additionally, the supervisory practices aimed at detecting circumvention of the reverse solicitation exemption encompass the monitoring of EU marketing activities and conducting consumer surveys, among other measures.

ESMA is actively seeking feedback on whether market participants endorse the proposed supervisory practices as effective means of identifying improper solicitations.

The second consultation paper includes inquiries related to the criteria used to classify crypto-assets as financial instruments, a move intended to minimize misunderstandings and misinterpretations of policy intent while promoting a consistent approach across the European Union, as emphasized by the regulator.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

Indonesia Watchdog Urges Finance Ministry to Re-Evaluate Crypto Tax Regime
04.03.2024By
Shido Token Plummets 85% Following Exploit on Ethereum Staking Contract
04.03.2024By
MagicEden Marketplace Ethereum is Live
04.03.2024By

Latest news

Indonesia Watchdog Urges Finance Ministry to Re-Evaluate Crypto Tax Regime
04.03.2024
Shido Token Plummets 85% Following Exploit on Ethereum Staking Contract
04.03.2024
MagicEden Marketplace Ethereum is Live
04.03.2024
Bitcoin NFTs Eclipse Ethereum with $168.5 Million in Weekly Sales
04.03.2024
BlackRock Spot Bitcoin ETF AUM Hits $10B Overtaking the iShares Silver Trust
04.03.2024
Bitcoin Price Crosses $65,000, Approaches All-Time High as Momentum Continues
04.03.2024
Bank for International Settlements Releases Executive Summary of Global Stablecoin Recommendations
03.03.2024
Traders Predict This Coin Can 25x By The End Of 2024
03.03.2024
$400 million in ETH Withdrawn from Blast L2 Network Following Mainnet Launch
03.03.2024
Ethereum Co-founder Joe Lubin Bullish on Crypto: “Momentum Unstoppable”
03.03.2024