The European Securities and Markets Authority (ESMA) proposed several changes to the MiCA bill prior to its official enactment. The regulator is asking the European Commission to tighten the disclosure requirements for licenses in the region.
The ESMA analysts published a formal opinion on the MiCA bill, urging the European Commission to consider extending some requirements for license applicants and tightening supervision of crypto-asset service providers (CASP).
In particular, the ESMA recommends an amendment to the bill that would require CASPs in the region to undergo mandatory external cybersecurity audits. Such audits should include:
- an assessment of the reputation of members of the management body;
- checks regarding the absence of penalties, including the areas of financial services and AML.
According to the published document, the stricter requirements under MiCA will increase the resilience of the EU crypto market. The ESMA analysts believe that only a more thorough assessment of license applicants in the region will improve the level of protection for local investors.
The European Council will consider the ESMA’s recommendations and decide on possible amendments to the draft law before the end of the year.
The MiCA bill was adopted in 2023. It’ll be fully in force by 2026. Previously, the ESMA analysts warned that multifunctional crypto-asset intermediaries (MCI) could use cryptocurrencies for offshore transactions to circumvent MiCA.
