Seeking more robust policies to control the European Union’s bitcoin market, the European Securities and Markets Authority (ESMA) has advised the European Commission to change the Markets in Crypto-Assets Regulation (MiCA). In an official statement on October 16, ESMA emphasized the need for improvements in cybersecurity and investor protection in the expanding digital asset environment.
ESMA stressed the need to keep in line with MiCA’s original objectives even while it admitted the legal limitations noted by the European Commission. Mandatory cybersecurity examinations for businesses seeking permission as crypto asset service providers (CASPs) are among the suggested improvements. These outside audits would assess the security systems of the platforms in order to improve their resistance against cyberattacks.
Apart from cybersecurity, ESMA advised revisions to data disclosure policies. Under the updated structure, CASP candidates would have to give thorough data, including the findings of these outside cybersecurity audits. Moreover, the regulator demanded a more comprehensive assessment of corporate leadership, including management members’ legal and reputational status.
The ESMA underlined that these changes seek to strengthen the entrance evaluation for companies joining the bitcoin market, thereby fostering a strong digital asset ecosystem. The EU wants to create a safer environment for investors by increasing openness and security; therefore, it wants to strengthen the whole market.
The European Commission, the European Parliament, and the European Council have also received the suggested revisions. These establishments will now choose whether to follow the advice or turn it down. Three months should see the last word on the modifications.
The debate over these changes highlights the rising need for tougher rules in response to the fast-changing cryptocurrency scene as MiCA gets ready for complete implementation by December 2024.
