The European Securities and Markets Authority (ESMA) is urging updates to the European Union’s regulatory framework for cryptocurrencies, known as the Markets in Crypto-Assets Regulation (MiCA). On October 16, ESMA released an official statement calling on the European Commission to revise key aspects of MiCA, particularly to enhance cybersecurity and strengthen the entry requirements for crypto asset service providers (CASPs).
Key Proposed Amendments to MiCA
ESMA has recommended that any business applying to offer crypto services in the EU should provide the results of an external cybersecurity audit. This requirement aims to ensure that the service provider’s systems are secure and capable of protecting users.
Additionally, ESMA suggests that applicants must present an evaluation of the reputation and qualifications of their management team. This includes checks to confirm that key individuals have no history of legal penalties in areas such as financial law, anti-money laundering, and professional misconduct.
Strengthening Market Resilience and Investor Protection
The proposed changes are intended to make the cryptocurrency market more resilient and offer stronger protections for investors. ESMA’s goal is to ensure that companies entering the crypto space in Europe meet high standards of security and integrity from the start
Summary Review: The European Securities and Markets Authority (ESMA) is pushing for updates to the MiCA regulatory framework, urging the European Commission to implement stricter requirements for crypto service providers. Proposed changes include mandatory external cybersecurity audits and more thorough checks on management teams to enhance the market’s resilience and investor protection. The European Council and Parliament must decide on these updates within three months before MiCA is fully enforced.
The European Parliament and the European Council have the final say on whether these changes will be adopted. They have a three-month window to accept or reject the amendments before MiCA fully takes effect on December 30.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decisio
