CSB Acting as Security Trustee for Agora Estates p.l.c’s Bond Issue
by CSB Group
30th April 2024
The European Securities and Markets Authority (ESMA) has kept up the momentum ahead of the implementation of the Markets in Crypto-Assets Regulation (MiCA) this year.
On 25 March 2024, the EU watchdog published:
MiCA will establish uniform rules across the European Union (EU) for crypto-assets. ESMA has been busy finalising several aspects under MiCA, which will be implemented in two phases. The provisions of MiCA will generally apply from 30 December 2024, except Titles III (Asset-Referenced Tokens) and IV (E-Money Tokens) which will apply from 30 June 2024.
MiCA requires ESMA to prepare draft regulatory technical standards (RTS) and implementing technical standards (ITS) on a variety of topics. In July 2023, ESMA issued its first consultation package with a raft of measures – under 5 RTSs and 2 ITSs – in respect of the following:
ESMA’s final report covers the topics listed in points 1, 2, 3 and 5 above. The final report on the RTS for conflicts of interest will be published by ESMA at a later stage.
In most cases, the respondents were broadly supportive of ESMA’s proposals. On this basis, ESMA did not introduced substantial changes in its final report – particularly in relation to the notification and authorisation of crypto-asset services. The European Commission, the executive arm of the EU, must decide whether to adopt ESMA’s final report within three months.
ESMA also issued a final report specifying the requirements for cooperation, exchange of information and notification between competent authorities, European Supervisory Authorities, and third-country authorities under MiCA.
ESMA will now submit the RTSs and ITSs to the European Commission for adoption. ESMA did not consult publicly on these matters since the standards are not addressed to market participants.
ESMA’s third consultation package seeks public scrutiny on four new topics, namely:
Stakeholders are encouraged to provide their feedback by 25 June 2024.
Authors: James Debono (Senior Associate) & Mark Caruana Scicluna (Senior Associate)