The article aims to "improve... understanding of cryptoasset trading and the extent to which it resembles or differs from traditional financial markets." It also identifies current and potential areas of risk, not only to consumers but also to market order and financial stability. Finally, the analysis "informs and supports the implementation of the EU Markets in Crypto-Assets (MiCA) regulation".

ESMA has been empowered to develop technical standards and guidelines specifying certain provisions of MiCA. To fulfil this, ESMA has drafted technical standards for those mandates found in Chapter 1 of Title VII dealing with the powers of competent authorities and cooperation between competent authorities, the European Banking Authority (EBA), and ESMA. These technical standards detail how competent authorities, the European Supervisory Authorities (ESAs), and third-country authorities should cooperate with each other in the performance of their duties under MiCA.

The report contains two draft Regulatory Technical Standards (RTS) and two Implementing Technical Standards (ITS) relating to:

(i) the exchange of information between competent authorities,

(ii) procedures, forms and templates for the exchange of information between competent authorities,

(iii) procedures, forms and templates for exchange of information between competent authorities and ESMA/EBA, and

(iv) the template for cooperation with third-country authorities.

ESMA will submit the Final Report as well as the draft regulatory and implementing standards to the European Commission. The Commission has three months to decide whether to adopt the technical standards. The European Commission may extend that period by one month. The regulatory technical standards will also be subject to non-objection by the European Parliament and Council. 

In the consultation package, ESMA is seeking input on four sets of proposed rules and guidelines, covering:

• Detection and reporting of suspected market abuse in cryptoassets (RTS).
• Policies and procedures, including the rights of clients, for cryptoasset transfer services (Guidelines).
• Suitability requirements for certain cryptoasset services and format of the periodic statement for portfolio management (Guidelines).
• ICT operational resilience for certain entities under MiCA (Guidelines).

Deadline for comments is 25 June 2024.

ESMA will publish a final report based on the feedback received and will submit the draft technical standards to the European Commission for endorsement by 30 December 2024 at the latest.

The report includes proposals on:

• information required for the authorisation of cryptoasset service providers (CASPs);
• the information required where financial entities notify their intent to provide cryptoasset services;
• information required for the assessment of intended acquisition of a qualifying holding in a CASP; and
• how CASPs should address complaints.

ESMA has submitted the Final Report to the European Commission and will provide further advice and technical guidance in this area if requested by the Commission.

The draft RTS fulfil a mandate conferred on the EBA in the Markets in Crypto-Assets Regulation (MiCAR) and were developed in cooperation with the European Securities and Markets Authority (ESMA).

MiCA mandates the EBA to develop technical standards and guidelines to specify the requirements for asset-referenced tokens and e-money tokens.

The EBA is seeking consultation responses on its proposed Guidelines to redeem asset-referenced or e-money tokens in the event that an issuer fails to fulfil its obligations under MiCAR.

The proposed Guidelines subject to the consultation include the following:

• A clarification of the principles of redemption, such as equitable treatment of token holders.
• A description of the steps for the redemption plan, including the communication measures, the content of the redemption claims and the distribution plans.
• Addressing the scenario of pooled issuance wherein the same token is issued by multiple issuers.
• Considering the circumstances under which an authority is entitled to activate the plan, and the role that the prudential and resolution authorities will play in this.

Deadline for comments is 10 June 2024.