ESMA publishes final rules on conflict of interest of crypto assets providers

In the report ESMA sets out draft Regulatory Technical Standards on certain requirements in relation to conflicts of interest for crypto-asset service providers (CASPs) under MiCA, with a view to clarifying elements in relation to vertical integration of CASPs and to further align with the draft European Banking Authority (EBA) rules applicable to issuers of asset-referenced tokens (ARTs).

The RTS also contain updates on:

1. requirements for the policies and procedures for the identification, prevention, management, and disclosure of conflicts of interest, considering the scale, the nature and the range of crypto-asset services provided, as well as

2. details and methodology for the content of the disclosures of conflicts of interest.

Reasons for publication

The Regulation on markets in crypto-assets (MiCA)1 requires ESMA to submit draft regulatory technical standards (RTS) and implementing technical standards (ITS) on a variety of topics. On 12 July 2023, ESMA published a Consultation Paper to seek stakeholders’ views on ESMA’s proposals for 5 RTSs and 2 ITSs. The consultation period closed on 20 September 2023. ESMA received 36 responses, 10 of which were confidential. The answers received are available on ESMA’s website2 unless respondents requested otherwise. ESMA sought the advice of the ESMA Securities and Markets Stakeholder Group’s (SMSG) established under Regulation (EU) No 1095/2010.

Next Steps:

The draft technical standards are submitted to the European Commission for adoption. In accordance with Articles 10 and 15 of Regulation (EU) 1095/2010, the European Commission shall decide whether to adopt the technical standards within 3 months.

Source – Final MiCA rules on conflict of interest of crypto assets providers published