ESMA published new questions and answers on October 17, 2023, regarding the application of the Markets in Crypto-Assets Regulation (MiCA) to crypto-asset service providers (CASPs). The document clarifies the conditions under which CASPs can offer lending services involving clients' crypto-assets and how their advisory practices align with existing investment advice regulations under MiFID II.
The guidance relies on the Markets in Crypto-Assets Regulation (MiCA), specifically addressing compliance obligations for CASPs. It highlights the need for CASPs to understand their regulatory expectations when providing lending services and investment advice related to crypto-assets.
The new Q&As apply specifically to crypto-asset service providers (CASPs) operating under the MiCA framework. These clarifications are essential for CASPs to navigate their compliance obligations effectively.
The material does not specify a deadline for compliance or any transitional period. CASPs are encouraged to review the new Q&As and assess their current practices against the clarified regulatory expectations.
The guidance aims to assist CASPs in aligning their lending services and advisory practices with the clarified regulatory expectations under MiCA and MiFID II. Compliance teams should take immediate action to ensure adherence to these new guidelines.