Regulation
ESAs consult on guidelines for cryptocurrency regulation
THE European Supervisory Authoritiesincluding EBA, EIPA and ESMA, have published a consultation paper on guidelines under the Markets in Cryptocurrencies Regulation (MiCAR).
In doing so, the ESAs intended to develop templates for legal explanations and opinions regarding the classification of cryptocurrencies along with a standardized assessment to support a common approach to classification. In addition, the current move is intended to assist market participants and supervisors in accommodating a standardized test while receiving legal explanations and opinions that provide descriptions of the regulatory classification of cryptocurrencies in different cases. Among them, the ESAs mention:
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Asset-Referenced Tokens (ART), whose white paper for their issuance must be accompanied by a legal opinion that highlights the classification of the crypto-asset, especially with regard to the fact that it is not an electronic money token (EMT) or a crypto-asset that could be excluded from the scope of MiCAR;
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Cryptocurrencies that are not considered ART or EMT under the Regulation, for which the white paper must be accompanied by an explanation of the classification of the cryptocurrency, in particular information that is not an EMT, ART or a cryptocurrency are excluded from the scope of MiCAR.
As part of the press release, the ESAs mention that the consultation paper can be submitted directly from the consultation page, with a deadline for submissions of 12 October 2024. After holding a virtual public hearing on the consultation paper on 23 September 2023, the authorities are ready to publish all contributions, unless otherwise requested.
Background
In an effort to establish a framework for the provision of crypto-asset services, MiCAR develops regimes to regulate the issuance, supply to the public and admission to trading of EMT, ART and other crypto-assets. The draft was created under Article 97(1) of MiCAR, which requires authorities to jointly provide by 30 December 2024 the Guidelines pursuant to Article 16 of the ESA Regulations (EU Regulation) No. 1093/2010 Regulation 1094/2010, Regulation 1095/2010) to specify the content and form of the explanation accompanying the white paper on crypto-assets referred to in Article 8(4) and the legal opinions on the qualification of asset-referenced tokens (ARTs) referred to in Article 17(1), point (b)(ii) and Article 18(2), point (e) of MiCAR.
In addition, ESAs are required to include in the Guidelines a model for explanation and opinion and a standardized test for the classification of cryptocurrencies. At the time of the announcement, this was the only joint policy mandate of ESAs developed under MiCAR.