According to Odaily Planet Daily, the European Securities and Markets Authority (ESMA) has issued an opinion on the use of non-EU execution venues by global crypto companies. The European regulator recognizes the risks associated with the complex structures of global crypto companies, as the execution venues of these structures are not within the scope of MiCA.
The opinion is part of ESMA and the NCAsâ wider efforts to ensure the effective application of MiCA and convergent supervisory practices across the EU. ESMAâs intervention aims to address the risks posed by global crypto firms seeking authorization for some crypto brokerage activities under the MiCA Regulation while keeping a significant portion of their organizationâs internal execution venues outside the EU regulatory perimeter.
The regulator said that the complex structures of global crypto firms may include the involvement of EU-authorized brokers that effectively route orders to intra-group execution venues outside the EU, which could lead to reduced consumer protection and an uneven playing field with EU-authorized execution venues.
