Opinion

Shaping the future of MiCAR: ESMA publishes second MiCAR consultation package

Published Date
Oct 12, 2023
On 5 October 2023, after the publication of a first consultation paper in July 2023 that focused on draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) applicable to crypto-asset service provers (CASPs), the European Securities and Market Authorities (ESMA) published its second consultation paper on Technical Standards under the Markets in Crypto-assets Regulation (MiCAR). In this context, crypto-asset issuers, CASPs and financial entities dealing with crypto-assets as well as all stakeholders having an interest in crypto-assets are invited to provide their feedback by 14 December 2023.

The Consultation Package contains six draft RTS and two draft ITS covering the following topics:

  • Sustainability: The first draft RTS covers the content, methodologies and presentation of information in respect of sustainability indicators in relation to adverse impacts on the climate to be included in crypto-asset white papers by persons drawing-up such white papers as well as by CASPs on their websites.
  • Disclosure of Inside Information: A draft ITS lays down technical means for the disclosure of inside information to the public as well as the delaying of such disclosure.
  • White Paper: A draft RTS and a draft ITS aim at ensuring more standardisation and clarity in relation to the information that must be included in the white papers. In addition to those, ESMA also released a Proof of Concept (PoC) illustrating the concrete application of the Inline XBRL format requirements set out in the ITS in respect of crypto-asset white papers. This PoC includes:
    • A draft taxonomy;
    • An xHTML file, illustrating a section of a crypto-asset white-paper in Inline XBRL;
    • An Excel converter into Inline XBRL.
  • Trade transparency measures: A draft RTS specifies how pre- and post-trade transparency data are to be made available and presented to the public by CASPs operating a trading platform for crypto-assets.
  • Record-keeping: A draft RTS specifies record-keeping requirements for CASPs and the formats to be used when providing transaction details to competent authorities. Another draft RTS specifies the content and format of order book records for CASPs operating a trading platform for crypto-assets.
  • Business continuity requirements: A draft RTS lays out business continuity requirements with which CASPs have to abide, including organisational arrangements as well as periodically reviewed and tested business continuity policy and plans.

Acknowledgments to Romain Garcia-Messelet, intern at the A&O Luxembourg Financial Services Regulatory team, for his contribution to this post.

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This content was originally published by Allen & Overy before the A&O Shearman merger