cryptojournalist
The European Securities and Markets Authority (ESMA) has just released its final guidance to help EU countries finish implementing the Markets in Crypto-Assets (MiCA) regulations. MiCA officially started in June 2024, but the full rules will kick in by December 30, 2024.
What’s the Problem?
Some EU countries — like Belgium, Italy, and Poland — are having trouble meeting the deadline because the rules weren’t clear enough. Regulators and industry experts raised concerns about confusing guidelines, especially around how to classify digital assets and use them legally.
ESMA’s Fixes
To address this, ESMA clarified 12 major issues, focusing on preventing different interpretations of the rules across countries. They included scenarios to explain the guidelines better but avoided giving specific examples of cryptocurrencies to stay neutral.
Crypto and Old Rules (MiFID II)
Another challenge is how crypto fits into older EU financial rules, particularly MiFID II — a regulation created after the 2008 financial crisis. MiFID II doesn’t clearly define crypto-assets. ESMA’s solution? Refine the existing rules without changing the definition of financial instruments.
Still a Work in Progress
While this report is called “final,” ESMA made it clear they’ll keep working with lawmakers and industry players to improve clarity without rewriting the laws.
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