ESMA published a new question and answer document on October 17, 2023, regarding the temporary holding of EU client crypto-assets in non-EU hot wallets. The document clarifies that such temporary presence can be considered a purely technical or transient transfer step, rather than custody or administration.
The guidance relies on the Markets in Crypto-Assets Regulation (MiCA), specifically addressing compliance requirements for crypto-asset service providers (CASPs) regarding asset custody and client protection.
The guidance applies to crypto-asset service providers (CASPs) operating under MiCA, emphasizing the need for these entities to review their current practices in light of the new clarifications.
No specific deadline or transitional period is stated in the document, but CASPs are encouraged to assess their operations to ensure compliance with MiCA's requirements.