Summary
The European Securities and Markets Authority (ESMA) has drafted guidelines that prioritize crypto firms within the European Union (EU) over outside firms. The guidelines seek comments on providing clarity under the Markets in Crypto Asset (MiCA) rules passed last year. The aim is to protect EU-based investors and MiCA-compliant crypto asset service providers (CASPs) from non-EU and non-MiCA compliant entities. According to the guidelines, firms outside the EU would be banned from solicitation, including ads, sponsorship deals, and influencer or celebrity solicitation. ESMA has also clarified that non-fungible tokens (NFTs) are outside the scope of the regulatory framework. Public consultation on the guidelines is open until the end of April, and ESMA has until late December to issue the final guidelines.
Key Points
1. The European Securities and Markets Authority (ESMA) has drafted guidelines prioritizing crypto firms in the European Union over outside firms, aiming to protect EU-based investors and ensure that EU CASPs are not at a competitive disadvantage compared to third-country firms.
2. Under the proposed guidelines, firms outside of the EU would be banned from solicitation, including ads, sponsorship deals, and influencer or celebrity solicitation.
3. ESMA has released another consultation paper focusing on crypto as a financial instrument, clarifying that non-fungible tokens (NFTs) are outside the scope of the regulatory framework. Public consultation on both papers will be accepted until the end of April.