European Supervisory Authorities Consultation Paper on Guidelines under Markets in Crypto-Assets Regulation (MiCAR)

The European Supervisory Authorities, including EBA, EIPA, and ESMA, have taken a significant step towards regulating crypto assets by publishing a consultation paper on Guidelines under Markets in Crypto-Assets Regulation (MiCAR). This move aims to provide clarity and standardization in the classification of crypto assets, assisting market participants and supervisors in adopting a common approach.

The consultation paper outlines the requirements for asset-referenced tokens (ARTs) and other crypto assets that fall under the scope of MiCAR. It emphasizes the need for white papers to be accompanied by legal opinions or explanations that clearly define the classification of the crypto asset, ensuring it complies with regulatory standards.

Market participants and stakeholders are encouraged to provide feedback on the consultation paper, with the deadline for submissions set for 12 October 2024. The ESAs have also scheduled a virtual public hearing on 23 September 2023 to discuss the guidelines further.

MiCAR aims to establish a regulatory framework for crypto asset service provision, including the issuance, public offering, and trading of EMTs, ARTs, and other crypto assets. The Guidelines developed under MiCAR will specify the content and format of explanations and legal opinions accompanying crypto asset white papers, as mandated by Article 97(1) of MiCAR.

This consultation paper marks a significant milestone in the joint efforts of the ESAs to regulate crypto assets effectively. Stakeholders are encouraged to participate in the consultation process to shape the future of crypto asset regulation in Europe.