EU cryptoasset guidelines under consultation

The April 2024 edition of Compliance Monitor, a publication of Lloyd’s List Intelligence's, features an article written by our experts Charlotte Hill, Daniel Hirschfield, and Shaanil Senarath-Dassanayake about the European Securities and Markets Authority (ESMA)'s consultation papers on draft guidelines under MiCA on reverse solicitation as well as the conditions and criteria for the qualification of cryptoassets as financial instruments.

Click ‘Open File’ below to access a PDF version of the article.

The closing date for responses to the consultations is 29 April 2024, so there is still time left for your voice to be heard!

Under MiCA, ESMA is required to issue final guidelines by 30 December 2024 at the latest. In its press release accompanying the consultation papers, ESMA said it will consider the feedback it receives in Q2 2024 and aims to publish its reports in Q4 2024.

Both consultation papers are essential reading for those involved in crypto activities with an EU angle. Third-country firms that are considering whether they may be able to provide crypto services to a client in the EU in response to the client's request should study the draft guidelines set out in the reverse solicitation consultation paper carefully in order to understand the limited basis that such business may be conducted. The draft guidelines included in the financial instruments consultation paper, if adopted and complied with by National Competent Authorities, should result in a harmonised approach to the cryptoasset/financial instrument dichotomy across the EU, as well as greater legal and regulatory certainty for stakeholders and market participants.

If you have any questions on the consultation papers or how MiCA will affect your business, get in touch with one of us.