MiCA was crafted to boost regulatory oversight on unlicensed asset-related activities, but the ESMA said holders won't be protected under the latest regime until December 2024 and potentially longer.
The two reports published by ESMA warned of the "serious risks" DeFi poses to investors, including those related to DEXs and wash trading, and outlined a methodology for categorizing smart contracts.
It is expected that a final implementation of MiCA will emerge as ESMA has shared its plans to submit a final paper with the draft technical standards and implementations by June 30, 2024.
MiCA will come into force in 2024, but the June 11 consultation is further evidence of a ramping up of efforts in the bloc to implement its far-reaching digital asset goals.
The consultation set for July regarding the provisions contained within MiCA will revolve around data needed to obtain a permit, complaint-handling procedures, and management policies, among others.
ESMA wants investment firms to be honest with their clients on the relative lack of regulations for products like gold and digital assets across jurisdictions.
France backpedals with its proposed ban on restricting influencers from promoting digital asset products, with plans to work with the European Banking Authority and ESMA in revising the draft bill.
As Europe prepares for the MiCA enforcement, France is working toward ensuring PSANs' compliance by proposing sweeping changes to the country's regulatory framework.
The impact of FTX's collapse may be largely restricted to the digital asset industry, but one effect the crisis had outside of the space was to put the concept of systemic risk back onto the agenda.
The European Parliament and Council have finalized laws that will regulate a planned pilot project to test the use of blockchain technology for tokenized securities.
The European Parliament reached a consensus on a DLT pilot for early 2023 and the ESMA has called for public input to see if it needs to change securities laws.
The report views digital currency a trending innovation in finance, but also a threat to the sustainability of financial services due to its environmental impact.
