According to Foresight News, the European Securities and Markets Authority (ESMA) issued a document in response to the European Commission’s proposal to amend the Regulatory Technical Standards (RTS) for Market Regulation of Crypto Assets (MiCA). ESMA acknowledged the legal restrictions proposed by the Commission, but emphasized the importance of the policy objectives behind the initial proposal.

In the opinion, ESMA notes the proposed amendments to two RTS, specifically regarding: the information to be included in the notification of the intention of certain financial entities to provide crypto-asset services; and the information to be included in the application for authorisation of a crypto-asset service provider. ESMA reiterates that the ultimate goal of these RTS is to ensure a thorough entry point assessment of applicant crypto-asset service providers (CASPs) and financial entities intending to provide crypto-asset services in the EU. ESMA therefore recommends that the Commission consider an amendment to the MICA Regulation (Level 1) to require applicant crypto-asset service providers and notifying entities to provide the results of an external cybersecurity audit; and when assessing the good reputation of the members of the governing bodies of applicant crypto-asset service providers, including checks on commercial law, bankruptcy law, financial services law, anti-money laundering and combating the financing of terrorism, fraud or professional liability.