The European Securities and Markets Authority (Esma), the EU’s financial markets regulator, has released the second final report under the Markets in Crypto-Assets Regulation (MiCA) including eight draft technical standards aimed at enhancing transparency.
The second final report is designed for retail investors, providing clear guidelines for providers on disclosure, record-keeping requirements and data standards for supervision by National Competent Authorities (NCAs).
Key draft technical standards in the report address sustainability indicators for crypto-asset consensus mechanisms and business continuity measures for crypto-asset service providers (CASPs). They also cover trade transparency and the content and format of orderbooks and record-keeping by CASPs.
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Additionally, the standards emphasise the importance of human and machine readability for crypto-asset white papers and the register of white papers. They detail public disclosure of inside information and outline how CASP trading platforms should publish data required for pre-and post-trade transparency.
The draft standards also aim to ensure that NCAs have access to necessary information for effective supervision of the EU crypto-asset market. This includes providing templates and formats for CASP order and transaction records, ensuring both transparency and accountability.
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Public disclosures will help investors understand the environmental impact of crypto-asset consensus mechanisms and outline how issuers should disclose price-sensitive information to prevent market abuses such as insider trading.
Next, these draft technical standards will be submitted to the European Commission for adoption. The Commission will decide on their adoption within three months, marking a significant step towards enhanced transparency and regulatory clarity in the crypto-asset market.
