The ABBL responds to ESMA’s consultation on Markets in Crypto Assets Regulation

The ABBL has provided its response to the European Securities and Markets Authority (ESMA) consultation on the Markets in Crypto Assets Regulation (MiCA). Specifically, the consultation targeted draft technical standards and guidelines specifying certain requirements of the MiCA on detection and prevention of market abuse, investor protection and operational resilience (so called, third consultation paper).

ABBL suggestions and requests for clarification

The ABBL broadly supports ESMA’s draft technical standards and guidelines with a few suggestions and areas requiring further clarification:

• The ABBL agrees with ESMA’s assessment but suggests that Crypto-Asset Service Providers (CASPs) providing custody and administration of crypto-assets on behalf of clients should not be considered as PPAETs to avoid duplication of monitoring activities similarly to MAR approach in the context of financial instruments.
• The ABBL emphasizes the need to distinguish between off-chain and on-chain executions, especially concerning algorithmic trading and latency issues.
• The ABBL calls for a definition of “admitted to trading” for crypto-assets, which is crucial for monitoring arrangements.
• While supporting the proposed Suspicious transaction and order report (STOR) template, the ABBL suggests that certain information, such as an Account number, should be more accurately defined to reflect crypto-asset accounts, potentially using public addresses in distributed ledgers.

• ABBL response to ESMA’s consultation on Markets in Crypto Assets Regulation 25/06/2024

The ABBL’s response aims to ensure that ESMA’s MiCA guidelines are practical, clear, and supportive of a robust regulatory framework for the growing crypto-assets market. By addressing these key areas, the ABBL seeks to contribute to a regulatory environment that fosters innovation while safeguarding market integrity and investor protection.

The ABBL will keep its members updated on further progress regarding MiCA and its Level 2 policy documents