Regulatory Blog

On 25 March 2024, the European Securities and Markets Authority released its third consultation package concerning the regulation of Markets in Crypto-Assets.

With the rules in EU Regulation 1114/2023 on markets in crypto-assets (MiCA) becoming applicable by the end of 2024, staying compliant is crucial for businesses operating within the European Union/the European Economic Area (EEA). To assist crypto-industry participants in understanding their regulatory obligations under MiCA, Harneys proudly presents its new MiCA Assessment Tool.

On 29 January 2024, the European Securities and Markets Authority published two consultation papers relating to draft guidelines proposed to be issued under Regulation 2023/1114 on markets in crypto-assets.

On 20 October 2023, the European Banking Authority (EBA) released a comprehensive series of consultation papers pertaining to the Markets in Crypto-Assets Regulation (MiCA).

On 20 July 2023, negotiators from the European Council and the European Parliament reached a provisional agreement on new regulations aimed at improving European capital markets and strengthening investor protection in the EU. The agreement focuses on revising the Alternative Investment Fund Managers Directive (AIFMD), broadly referred to as AIFMD II, which governs managers of various investment funds including hedge funds, private equity funds, and real estate funds in the EU. Additionally, it modernises the framework for “plain-vanilla” EU-harmonised retail investment funds known as undertakings for collective investment in transferable securities (UCITS).

On 25 May 2023, the European Securities and Markets Authority (ESMA) issued a public statement warning investors about the risks associated with investment firms offering both regulated and unregulated products and services. ESMA emphasises that retail investors often rely on the reputation of an investment firm, which may in turn lead them to overlook the potential risks of unregulated products and services, known as the "halo effect". More specifically, such an overlook commonly occurs when unregulated products have a similar purpose to regulated financial instruments governed by MiFID II.

On 25 May 2023, the European Systemic Risk Board published a report, focussing on the systemic implications of crypto-asset markets and proposing policy options to mitigate the risks associated with crypto-assets and decentralised finance for the stability of the EU financial sector. Importantly, the report also takes into account the potential impact of the new EU Regulation 2023/1114 on Markets in Crypto Assets (aka MiCA).

On 28 March 2023, the European Parliament announced that the MEPs approved stricter rules to close existing gaps in combating money laundering, terrorist financing, and evasion of sanctions in the European Union. MEPs from the Economic and Monetary Affairs and Civil Liberties, Justice and Home Affairs committees have adopted their position on three pieces of draft legislation regarding the financing provisions of the EU Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) policy.

On 20 March 2023, the European Securities and Markets Authority published a press release, expressing concerns about proposed modifications to the insider list regime contained in MAR in a letter addressed to the European Parliament and the Council of the European Union.