Odaily Planet Daily News Circle EU Strategy and Policy Director Patrick Hansen said on Twitter: "I recommend this old advisory letter issued by the German financial regulator BaFin in 2018 to provide some guidance on how tokens work in Germany and the EU. When it might be considered a security under the law. At EU level, there are currently no guidelines for the regulatory classification of tokens/crypto-assets as financial instruments in the sense of MiFID II (eg transferable securities).
But that could change soon. As part of the MiCA implementation process, ESMA is mandated to issue guidance on the criteria and conditions for cryptoassets as financial instruments (securities). This work will be completed in the first quarter of 2024, and it is very interesting to watch.
Still, the EU is unlikely to deviate from its previous assessment that most crypto assets fall outside the bloc's existing securities regulation. As early as 2019, the European Banking Authority (EBA) and the European Securities and Monetary Authority (ESMA), the main EU regulators, had determined that, in general, cryptoasset activities do not constitute a legal entity within the scope of EU banking, payment and e-money laws. regulated services, the risks to consumers are not addressed at EU level. This awareness is one of the main drivers of MiCA.
Moreover, this assessment has even been incorporated into already applicable EU law, such as the DLT pilot regime, which states that 'most cryptoassets fall outside the scope of EU legislation and raises serious concerns in terms of investor protection, market integrity and financial stability. challenge. They therefore require a sui generis regime at EU level. '
Nonetheless, the industry should pay close attention to the forthcoming European Securities and Financial Authority (ESMA) guidance and should also contribute its views to the advisory package due to be published in the first quarter of 2024. "
In previous news, the European Securities and Markets Authority (ESMA) released a series of detailed proposals on how to authorize encryption companies in the European Union.
The EU agency is also seeking confidential information on the cryptocurrency firm’s expected revenue, the number of white papers and the use of on-chain and off-chain transactions in a consultation running until Sept. 20.
ESMA said further consultations on sustainability and record-keeping will take place in October, with the final set to be completed in early 2024, and will consider when cryptocurrencies are considered a security and how foreign companies will Serving EU customers.
Aaron