ESMA Releases New Guidelines for Crypto Asset Supervision
The European Securities and Markets Authority (ESMA) has released a new set of guidelines aimed at assisting National Competent Authorities (NCAs) in effectively supervising the market for crypto assets under the Market Abuse Regulation (MAR). This initiative recognizes the specific challenges posed by cryptocurrency trading, including its global reach and the significant role of social media in influencing market behavior.
Key Focus of the Guidelines
These guidelines underscore the importance of a risk-based and proportionate approach to supervision, fostering a cohesive supervisory culture tailored to the unique landscape of crypto assets. ESMA encourages dialogue between NCAs and the industry to enhance collaboration and consistency in regulatory practices.
Implementation and Compliance
In an effort to ensure a uniform approach across the EU, the guidelines will be made available in all official EU languages and will be posted on ESMA’s website. They are set to take effect three months after the translation process is complete. In the interim, ESMA urges NCAs to begin adopting the recommended principles to strengthen oversight.
Following the publication of the guidelines, NCAs will have a two-month window to report back to ESMA regarding their compliance status. They will need to indicate whether they fully comply, plan to comply, or do not intend to comply with the guidelines, ensuring that all authorities are aligned in their approach to preventing market abuse in the burgeoning crypto sector.
