The European Union is gearing up for an extensive MiCA consultation process.
The European Union's primary financial supervisor is set to launch a tripartite consultation process concerning the recently approved Markets in Crypto-Assets (MiCA) framework.
Detailed in a statement on the European Securities and Markets Authority (ESMA) webpage on June 12th, the officials revealed that the consultation packages slated for July 2023 would delve into the authorization, management, potential conflict of interest, and grievance resolution procedures under the MiCA umbrella.
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These procedures are yet to be approved by the European Commission, the European Parliament, and the European Council.
The inaugural consultation bundle will spotlight the technical standards associated with the crypto asset service providers' application within the EU. It will also address methods for processing grievances and declaring a potential conflict of interest scenarios.
The following consultation, projected to commence in October, will focus on investor information disclosure, governance requirements for crypto firms, and the assessment of "sustainability indicators and adverse impacts on climate."
ESMA claims that the final consultation, which is set to launch in the Q1 of 2024, will consider protective measures for investors and regulations to prevent market manipulation.
The MiCA framework's roots can be traced back to September 2020, when it was first suggested by the European Commission.
The proposal earned the green light from the Economic and Financial Affairs Council of the European Union in a May 2023 vote.
The initiation of the MiCA consultation process signals a structured approach to crypto asset regulation by the EU, setting a precedent for other jurisdictions to follow and offering clarity for industry players.
