According to the MiCA framework, full implementation should occur in around 18 months. Regulators and lawmakers appear to be reviewing suggestions to ensure a smooth transition.
The recently proposed Markets in Crypto-Assets framework (MiCA) will be the subject of a three-part consultation procedure by the European Securities and Markets Authority (ESMA).
Beginning in July 2023, the consultation process will concentrate on the MiCA’s authorization, governance, conflicts of interest, and complaint handling processes. The European Commission, European Parliament, and European Council will all need to approve the suggested actions.
Technical requirements for the use of crypto asset service providers in the EU, as well as policies for addressing complaints and exposing any conflicts of interest, will all be covered in the first consultation package, which is scheduled to start in July.
The second consultation, which is scheduled to start in October, will cover investor disclosures, governance standards for cryptocurrency businesses, and factors relating to sustainability indicators and negative climate impacts.
Related: EU Crypto Regulation Countdown Begins as MiCA Enters Official Journal
The investor protection and regulations to prevent market abuse may be the main topics of ESMA’s final consultation, which will be held in the first quarter of 2024.
The MiCA framework suggested a timetable of 18 months for complete implementation, with all regulations expected to take effect in December 2024.
Despite the fact that MiCA became effective in June, politicians and regulators are already developing ideas to enable a seamless transition to the crypto-specific law after it has been approved by the Economic and Financial Affairs Council of the European Union in May 2023.