The European Securities and Markets Authority (ESMA), the European Union’s regulatory body overseeing financial markets, has issued a second consultation document concerning the Markets in Crypto-Assets (MiCA) directives. Released on October 5th, this latest consultation seeks input from stakeholders on various aspects of MiCA, covering five specific areas.
In this 307-page document, ESMA is soliciting input on sustainability indicators for distributed ledgers, disclosures of inside information, technical requirements for white papers, trade transparency measures, and record-keeping for crypto-asset service providers (CASPs).
For sustainability indicators, ESMA is interested in feedback on quantitative metrics related to energy consumption, greenhouse gas emissions, and waste production associated with crypto-assets. They also seek qualitative insights into the environmental impact of blockchain network nodes on natural resources.
Regarding post-trade transparency, ESMA suggests requiring CASPs to report specific details related to their trades, including trading and publication date and time, crypto-asset identification, pricing information, quantity, execution venue, and transaction ID. ESMA also proposes flexibility in allowing CASPs to store transaction data in their preferred format, with the condition that they can convert it into a standardized format if requested by regulatory authorities.
The regulator intends to compile a final report based on stakeholder feedback and submit draft technical standards to the European Commission by June 30, 2024. Additionally, a third consultation package is scheduled for publication in the first quarter of 2024.
It is important to note that in a previous consultation paper released in July, ESMA proposed that crypto companies registered under MiCA should provide additional information through notifications to the national competent authorities (NCAs) in their respective countries.
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