The European Securities and Markets Authority (ESMA) has raised concerns about global cryptocurrency companies seeking partial approval under the Markets in Crypto Assets (MiCA) regulation while operating largely from offshore locations.
On July 31, ESMA highlighted risks linked to these firms’ use of EU-licensed brokers to handle trades through non-EU execution venues. This practice, according to ESMA, could jeopardize consumer protection and create an uneven competitive environment for EU trading platforms.
To address these issues, ESMA is urging National Competent Authorities in EU member states to rigorously evaluate the business models of these firms during the authorization process.
The authority stressed that compliance with MiCA is essential for safeguarding market integrity and consumer interest.
Alongside this warning, ESMA released a Final Report on July 3, detailing draft technical standards aimed at improving transparency for both investors and crypto-service providers. These standards cover various aspects such as sustainability, trade transparency, and record-keeping.
Since MiCA’s implementation in June 2023, EU regulators have been working to enforce its provisions and standardize crypto-asset classification, with recent moves including a new tool for market consistency. Meanwhile, notable crypto players, including Italy’s central bank and exchanges like OKX, are adapting to the new regulations and planning MiCA-compliant operations.
Binance has decided to halt spot trading of Tether (USDT) within the European Economic Area (EEA) as it works to comply with the EU’s new crypto regulations under MiCA (Markets in Crypto-Assets Regulation).
California is taking a bold step toward protecting cryptocurrency investors, with new amendments transforming an existing financial regulation bill into a dedicated digital assets framework.
Japan’s Financial Services Agency (FSA) is working on a proposal to amend existing financial laws, aiming to bring cryptocurrencies under the same regulatory framework as traditional financial instruments.
The U.S. Commodities Futures Trading Commission (CFTC) has taken a significant step by revoking a previous directive that had suggested stricter oversight of digital asset derivatives.