The European Securities and Markets Authority (ESMA) has responded to the European Commission's proposal to amend the Markets in Crypto-Assets Regulation (MiCA) Regulatory Technical Standards (RTS).

In its response, ESMA acknowledges the legal limitations outlined by the Commission. It also emphasizes the importance of the policy goals stated in the proposal.

Proposed Amendments to MiCA Regulation

ESMA's Opinion recognizes proposed amendments to two RTS. These amendments detail the information required for notification by financial entities wishing to offer crypto-asset services.

They also specify what is needed for applications from entities seeking authorization as crypto-asset service providers (CASPs). ESMA states that these RTS aim to improve the assessment process for CASPs and financial entities looking to provide crypto-asset services in the European Union.

To support these goals, ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term recommends that the Commission consider changes to the MiCA regulation (Level 1). Key suggestions include requiring applicant CASPs and notifying entities to submit results from an external cybersecurity Cybersecurity Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer Read this Term audit.

ESMA also proposes checks on the good repute of management members, specifically regarding any penalties beyond certain laws.

Commission to Review RTS

On March 25, 2024, ESMA released its first final report on the draft RTS and sent it to the Commission for adoption. ESMA has now shared its opinion with the Commission, the European Parliament, and the European Council.

The Commission has the authority to adopt or reject the proposed RTS, while the European Parliament and the Council can raise objections within three months.

Meanwhile, the European Union is working to reduce the securities settlement cycle from two days (T+2) to one day (T+1), aligning with international trends. ESMA has noted challenges such as the need for harmonization and modernization of systems, as reported by Finance Magnates.

This upgrade will require substantial investments, and market participants are seeking amendments to the Central Securities Depositories Regulation for a smooth transition. ESMA is collaborating with the European Central Bank and other authorities to establish a governance structure that ensures an inclusive and coordinated approach for the T+1 transition across the EU.