The European Securities and Markets Authority (ESMA) has entered the final phase of establishing regulatory frameworks for crypto assets within the EU with its latest report on the Markets in Crypto Assets (MiCA) regulation.

This report has been submitted to the European Commission, the executive arm of the 27-member bloc. The commission will offer further advice and technical guidance as needed.

Key policies outlined in the report include requirements for the authorization of crypto-asset service providers (CASPs), procedures for financial entities to declare their intent to offer crypto-asset services, standards for evaluating significant acquisitions in CASPs, and protocols for addressing complaints within these entities.

The main objective of the report is to ensure fair competition among CASPs, promoting a level playing field for all market participants while prioritizing investor protection across the EU.

The Securities and Markets Stakeholder Group of ESMA has expressed support for this objective, advocating for consistent regulatory oversight for both traditional financial intermediaries and those offering crypto-asset services.

To facilitate this goal, the group has proposed a "two-track approach" for notification and authorization processes, aiming to simplify regulatory requirements for all entities involved.

Additionally, ESMA has launched its third consultation package, inviting public feedback on proposed rules regarding the detection and reporting of suspected market abuse in the crypto sector. The consultation also addresses policies for crypto-asset transfer services and establishes suitability requirements for specific crypto-asset services. Moreover, it seeks to enhance ICT operational resilience for firms under MiCA.

Comments on these proposals will be accepted until June 25, 2024. Meanwhile, the European Banking Authority (EBA) has been actively consulting on MiCA regulation measures since its finalization in 2023. Furthermore, the EBA collaborated with ESMA in March to release draft regulations for issuers of multi-currency stablecoins.