ESMA Seeks Feedback on Crypto Regulations, Plans for MiCA by June 2024

The European Securities and Markets Authority (ESMA), the regulatory body of the European Union's financial markets, has issued a second consultative paper on Markets in Crypto-Assets (MiCA) regulations, with a final report expected by June 2024. The 307-page document solicits feedback on several key aspects of MiCA, including sustainability indicators for distributed ledger technologies, inside information disclosures, technical requirements for white papers, trade transparency measures, and record-keeping for crypto-asset service providers (CASPs).

Regarding sustainability indicators, ESMA is exploring metrics related to energy consumption, greenhouse gas emissions, waste production, and the environmental impact of blockchain network nodes' equipment usage.

In terms of post-trade transparency, ESMA is proposing that CASPs report trading details such as date and time, crypto-asset identification, pricing data, quantity, execution venue, and transaction ID. CASPs may also be permitted to store transaction data in their preferred format, provided they can convert it to a specified format upon regulatory request.

ESMA plans to release a final report based on stakeholder feedback and submit draft technical standards to the European Commission by June 30, 2024. Additionally, a third consultation package is slated for release in the first quarter of 2024. In a previous consultation paper issued in July, ESMA proposed that crypto companies registered under MiCA should provide additional information in the form of notifications to the national competent authorities (NCAs) of their respective countries.