**News Flash: ESMA Warns on Crypto Firms' Offshore Operations**

The European Securities and Markets Authority (ESMA) has issued a new Opinion highlighting risks posed by global crypto firms seeking partial authorization under the Markets in Crypto Assets (MiCA) regulation while operating offshore.

Released on July 31, the statement warns that such practices can undermine consumer protection and create an uneven playing field. ESMA urges National Competent Authorities (NCAs) to rigorously scrutinize these firms' business models during the authorization process.

Key points include:

- Ensuring compliance with MiCA regulations

- Managing conflicts of interest

- Adhering to guidelines on crypto-asset custody and administration

ESMA also published a Final Report on July 3, detailing eight draft technical standards to enhance transparency and clarity for investors and crypto-asset service providers. The MiCA regulation, effective since June 2023, aims to standardize crypto-asset classification and ensure market uniformity.