EU Flags Concerns Over Crypto Firms with Partial Licenses 🔥

On July 31, ESMA highlighted risks linked to these firms’ use of EU-licensed brokers to handle trades through non-EU execution venues. This practice, according to ESMA, could jeopardize consumer protection and create an uneven competitive environment for EU trading platforms.

To address these issues, ESMA is urging National Competent Authorities in EU member states to rigorously evaluate the business models of these firms during the authorization process.

The authority stressed that compliance with MiCA is essential for safeguarding market integrity and consumer interest.

Alongside this warning, ESMA released a Final Report on July 3, detailing draft technical standards aimed at improving transparency for both investors and crypto-service providers. These standards cover various aspects such as sustainability, trade transparency, and record-keeping.

Since MiCA’s implementation in June 2023, EU regulators have been working to enforce its provisions and standardize crypto-asset classification, with recent moves including a new tool for market consistency. Meanwhile, notable crypto players, including Italy’s central bank and exchanges like OKX, are adapting to the new regulations and planning MiCA-compliant operations.

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