The European Securities and Markets Authority (ESMA) is lobbying to modify the EU's cryptocurrency regulatory framework, MiCA. They issued an opinion requesting the European Commission to improve the rules.
ESMA proposes two major changes. The first requirement is that cryptocurrency service providers undergo external cybersecurity examinations. They also advocate for broader background checks on management that include more than just financial crimes.
These improvements aim to strengthen market resiliency and safeguard investors. ESMA emphasizes the importance of conducting rigorous entry point evaluations for crypto businesses. The watchdog recognizes legal constraints but persists in pursuing policy goals — they are reacting to the Commission's proposal to change MiCA's Regulatory Technical Standards (RTS).
ESMA's judgment comes after its March 2024 report on draft technical standards. The Commission intends to approve two RTS with changes. ESMA now has six weeks to amend and resubmit the standards.
The European Parliament and Council have three months to protest the Commission's proposed RTS. This demand for more stringent rules underscores rising worries about crypto market dangers. ESMA's suggestions might influence how crypto firms operate in the EU.
