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The European Union Financial Watchdog will launch a three-part consultation process for the newly adopted Cryptocurrency Asset Markets or MiCA framework.
In a notice posted on the European Securities and Markets Authority (ESMA) website on June 12, regulators said the consultation packages will cover MiCA’s authorization, governance, conflicts of interest and complaints procedures starting in July 2023. The measures will be subject to the approval of the European Commission, the European Parliament and the European Council.
The first consultation package will include technical standards for the application of cryptocurrency asset service providers in the EU, as well as procedures for handling complaints and disclosing potential conflicts of interest. The second, expected to begin in October, will look at investor disclosures, governance requirements for crypto firms, and “resilient performance and adverse climate impacts.”
#MiCA enters into force at the end of June.
️ To begin implementation, #ESMA with relevant stakeholders will launch 3⃣ public consultations in July, October & Q1 2024 → https://t.co/AvePQSapZp.
Details on the duration of each public comment period. pic.twitter.com/QFlERttwxR
— ESMA – EU Securities Markets Regulator (@ESMAComms) June 12, 2023
A final consultation, expected in the first quarter of 2024, could address investor protections and anti-market abuse rules, according to ESMA. Under MiCA, a roughly 18-month time frame is proposed for full entry into force, with all rules starting to apply from December 2024.
Related: Ripple welcomes MiCA regulation as US lawsuit highlights lack of clarity
After the European Commission first proposed it in September 2020, the Economic and Financial Council of the European Union approved the MiCA in a vote in May 2023. The ESMA said the framework “came into effect” in June, but regulators and lawmakers appear to be considering proposals aimed at ensuring the smooth implementation of cryptocurrency-focused legislation.
At a time when leaders in the cryptocurrency industry are considering which jurisdictions to do business in, the clarity of digital asset regulation is often at the forefront of discussions. MiCA aims to create a harmonized regulatory framework for cryptocurrencies among EU member states, while United States officials are being criticized for taking a “regulation by enforcement” approach.