The European Securities and Markets Authority (ESMA), the
EU’s financial markets regulator and supervisor, has published the second Final
Report under the Markets in Crypto-Assets Regulation (MiCA).
This report covers eight draft technical standards aimed at
providing more transparency for retail investors and clarity for providers on
the technical aspects of disclosure and record-keeping requirements.
Additionally, the standards include data protocols to facilitate supervision by
National Competent Authorities (NCAs).
ESMA’s MiCA Technical Standards
The final report includes the following draft technical
standards: sustainability indicators for crypto-asset consensus mechanisms,
business continuity measures for crypto-asset service providers (CASPs), trade
transparency, content and format of orderbooks and record-keeping by CASPs,
machine readability of white papers and the register of white papers, and
public disclosure of inside information.
The draft standards provide market participants with
technical requirements to ensure both human and machine readability of
crypto-asset white papers. They also establish templates and formats for CASP
order and transaction records.
MiCA Standards Await Adoption
The rules detail how CASP trading platforms should publish
the data required for pre-and post-trade transparency. This measure ensures
that NCAs have access to the necessary information for effective supervision of
the EU crypto-asset market.
The report also addresses public disclosures, aiding
investors in understanding the environmental impact of the consensus mechanisms
underpinning the crypto-assets they hold. It outlines how issuers should
disclose price-sensitive information to the public to prevent market abuses,
such as insider dealing.
Once finalised, the draft technical standards will be
submitted to the European Commission for adoption. The European Commission will
decide whether to adopt them within three months.
This article was written by Tareq Sikder at www.financemagnates.com.
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