The European Securities and Markets Authority (ESMA) is calling for modifications to the European Union’s Markets in Crypto-Assets Regulation (MiCA), expressing concerns over the framework’s current structure.
ESMA on Oct. 16 issued an official opinion urging the European Commission to pursue amendments that would enhance regulatory oversight in the crypto space.
“ESMA acknowledges the legal limitations raised by the Commission but emphasizes the importance of the policy objectives behind the initial proposal,” the regulator wrote, emphasizing the need for tighter standards in crypto markets.
ESMA’s recommendations focus on refining two key regulatory technical standards (RTS) within MiCA.
These RTS cover essential elements such as disclosures regarding the intent to offer crypto services and the process of obtaining authorization as a crypto asset service provider (CASP).
One significant change ESMA is advocating for is a requirement for external cybersecurity audits for CASP applicants.
According to the regulator, applicants should provide an external assessment of their management’s integrity, alongside confirmation that the organization has no record of penalties beyond areas like commercial law, insolvency …
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