Markets in Crypto Assets (MiCA), a regulatory framework for the European Union, is 18 months away from execution and regulators are planning a multi-step consultation process starting in July 2023. With this process, the lawmakers aim for a seamless implementation of the regulations. MiCA is a comprehensive regulatory framework that will come into effect in December 2024.
The consultation process was announced on June 12, 2023, on the website of the European Securities and Markets Authority (ESMA).
Multi-layer Consultation Process to begin for MiCA in July
ESMA is releasing the consultation packages for MiCA, with the second and third consultation packages having the shortest deadlines for completion. These levels would cover the areas of authorization, conflicts of interest, governance, and the procedure for handling complaints.
The second package is set to be published in October 2023. However, the specifics of the package are yet to be determined (TBD), but it is expected to cover the mandates with a deadline of 12 months. It could also include the disclosure of information to investors, Crypto Assets Service Providers (CASPs) governance requirements, and rules for trade transparency.
The third package shall be published sometime in the first quarter of 2024, and the specifics of it are also TBD. It might include rules regarding investor protection and counter-market abuse.
The first consultation package including certain technical details will be published in July 2023. The inclusions of the packages are listed and mandate the following. Article 60 (13): Right to Service (RTS) on the content of the notification from certain entities of the non-compete agreement (NCAs). Article 62 (5): RTS on the details of the application for CASP authorization.
Article 71(5): RTS on the procedure of complaint handling. Article 72(5): RTS on the prevention, management, and disclosure of conflict of interest. Article 84(4): RTS on the information regarding acquisition requirements. Article 60 (14): RTS on the templates and forms for the notification from the entities to NCAs. Article 62(6): RTS of the forms and template regarding the authorization applications of CASPs.
Execution Process of MiCA and Surrounding Speculations
The MiCA regulations were published in the Official Journal of the European Union (OJEU) on June 9, 2023. It was first introduced in the E.U. parliament in September 2020, and then it was signed into law on May 31, 2023. Once it is implemented on December 30, 2024, it will be a pioneer regulatory framework for the crypto industry.
However, BTC.x CEO Christian Anders expressed skepticism about the seamless implementation of Markets in Crypto Assets regulations. Getting every member nation of the European Union to adhere to the regulations would require intense lobbying efforts. Countries like Sweden have been reluctant in the issuance of licenses to crypto firms.
The member nations must share the enthusiasm surrounding crypto and the upcoming regulations for the efforts to bear fruits. Although the nations cannot directly deny these regulations, they can slow the implementation process.
After being published in the Official Journal of the European Union (OJEU) on June 9th, the rules will come into effect after a period of 20 days. Specific regulations will take effect nearly six months before the final implementation date scheduled on December 30, 2024.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/19/mica-consultation-procedure-starting-from-july-2023-in-e-u/