EU ESMA issued second consultation and white paper on the technical standards specifying certain requirements under the Markets in Crypto-Assets Regulation (MiCA).
Follows first of three consultation packages published in Jul. 2023, see #179189.
Second consultation package includes all remaining mandates with 12-month deadline.
The third and final consultation package is expected to be published in Q1 2024.
The aim of the public consultations is to collect views, comments, and opinions from stakeholders and market participants on the appropriate implementation of MiCA.
Consultation
Proposals relate to: content, methodologies, presentation of sustainability indicators, adverse impacts on climate; continuity, regularity in performance of CASP services.
Also: offering pre- and post-trade data to the public; content and format of order book records and record keeping by CASPs; machine readability of white papers and register of white papers; technical means for proper public disclosure of inside information.
White Paper
To allow for familiarisation with Inline XBRL, EU ESMA also made available a proof of concept (PoC) illustrating a concrete application of the proposed format requirements.
The PoC includes: draft taxonomy, an xHTML file (also containing XBRL tags), which illustrates what a section of a crypto-asset white paper in Inline XBRL would look like.
Also, an Excel converter into Inline XBRL, which displays how it would be possible to create an Inline XBRL file without the use of complicated software tools.
Stakeholders are invited to download Excel converter, test how it can be customised.
Effectiveness
Consultation is open until Dec. 14, 2023 and EU ESMA expects to publish final report and submit draft technical standards to the EU CMSN for endorsement by Jun. 2024.
In Oct. 2023 EU ESMA issued SMSG advice on MiCA technical standard, see #187763.
In Nov. 2023, EU ESMA issued Verena Ross' speech at Malta FSA forum, #191830.
On Jul. 4, 2024, EU ESMA published the second final report under MiCA covering eight draft technical standards that were consulted on between Oct. and Dec. 2024.
The standards in report aim to provide more transparency for retail investors, clarity for providers on technical aspects of disclosure and record-keeping requirements.
And data standards to facilitate supervision by national competent authorities (NCAs).
The standards in the final report cover: sustainability indicators for crypto-asset consensus mechanisms; business continuity measures for CASPs; trade transparency.
Content and format of orderbooks and record-keeping by CASPs; machine readability of white papers and the register of white papers; inside information public disclosure.
Once in place the standards will ensure NCAs have access to information needed for effective supervision of EU cryptoasset market, investors will have gained clearer understanding of impact of their investments on the climate and environment.
ESMA also issued study on MiCA whitepaper data formats, which sets out results of study to assess appropriate machine-readable format for the MiCA white papers and other similar textual disclosures, which recommends adopting Inline XBRL (iXBRL).
ESMA has therefore mandated iXBRL as technical format for standardized white paper templates, is developing a taxonomy for its use and will publish it asap after adoption of the draft standards, will issue an editable template on its website by mid-2025.
The relevant technical standard allows for 12 months lead time following date of entry into force, in the meantime white papers should be issued as per MiCA, on websites.
The draft technical standards will now be submitted to EU CMSN for adoption.
On Oct. 25, 2024, EU CNCL issued cover note attaching letter from EC to ECOFIN.
Confirmed that the listed RTS could not be adopted within the 3-month time period, as adjustments to the initial drafts were needed, which need additional time to process.
EC working closely with ESMA to make sure the RTS are adopted as soon as possible.
Nov. 5, 2024 RTS on Continuity
On Nov. 5, 2024, EU CMSN issued adopted RTS of Oct. 31, 2024, on continuity and regularity in the performance of crypto-asset services (C(2024)7523).
Article 2 provides for requirements regarding the organizational aspects of the business continuity arrangements to be maintained by CASPs.
Article 3 lays down the requirements applicable to the business continuity policy to be established by CASPs, including its essential elements.
Article 4 requires CASPs to establish business continuity plans to implement the business continuity policy and specifies their minimum content.
Article 5 specifies the requirements for the periodic testing of business continuity plans to be undertaken by CASPs; Article 6 requires CASPs to take into account increased complexity and risk when developing their business continuity policy and, in this context, to carry out a self-assessment of the scope, nature and range of services.
Regulation shall enter into force on the twentieth day following that of OJ publication.
Subject to scrutiny period, usually 2 months, during which EP and council may object.
Nov. 13, 2024 ITS on Public Disclosure
On Nov. 13, 2024, EU CMSN issued ITS Reg 2024/2861 on technical means for the appropriate public disclosure of inside information and for delaying public disclosure.
Regulation in force on 20th day following publication in the Official Journal, Dec. 3.
Nov. 28, 2024 RTS on Trade Transparency
On Nov. 28, 2024, EU CMSN adopted final RTS specifying the manner in which crypto-asset service providers operating a trading platform for crypto-assets are to present transparency data (C(2024)8510); regulation into force on 20th day after OJ issue.
Subject to scrutiny period, usually 2 months, during which EP and council may object.
Nov. 29, 2024 RTS on Order Book Records
On Nov. 29, 2024, EU CMSN adopted final RTS specifying the content and format of order book records for providers operating a trading platform (C(2024)6909).
Subject to scrutiny period, usually 2 months, during which EP and council may object.
Regulation in force on 20th day following that of publication in the Official Journal.
Dec. 2024 Crypto-asset White Paper Templates
On Dec. 3, 2024, EU CMSN issued final Reg 2024/2984, of Nov. 29, in Official Journal.
Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the EU, i.e. Dec. 23; it shall apply from Dec. 23, 2025.
Dec. 16, 2024 Machine-readable White Paper Data
On Dec. 16, 2024, EU CMSN adopted the final draft RTS (C(2024)8791) specifying the data necessary for the classification of crypto-asset white papers, and the practical arrangements to ensure that such data is machine-readable.
Article 1 provides for the accompanying data for the classification of white papers.
Article 2 provides for the Legal Entity Identifiers; Article 3 provides for the identification of the crypto-asset and the related white paper.
Article 4 lays down the date of entry into force of the delegated act.
Regulation enters into force on 20th day following publication in Official Journal of EU.
Regulation shall apply from Dec. 23, 2025.
Dec. 17, 2024 Sustainability Indicators
On Dec. 17, 2024, EU CMSN adopted final draft RTS (C(2024)8782) specifying content, methodologies and presentation of information in respect of sustainability indicators in relation to adverse impacts on climate and other environment-related adverse impacts.
Article 1 provides the definitions; Article 2 specifies the requirements for the presentation of information in the white papers; Article 3 lays down general principles for the presentation of information by crypto-asset service providers.
Article 4 specifies obligations for disclosures in the white paper; Article 5 specifies the obligations for disclosure on the websites of crypto-asset service providers; Article 6 provides further details on disclosure requirements; Article 7 covers entry into force.
Regulation shall enter into force on the twentieth day following that of OJ publication.
