ESMA: Digital asset investor protections won’t kick in until end of 2024
The post ESMA: Digital asset investor protections won’t kick in until end of 2024 appeared on BitcoinEthereumNews.com. The European Securities and Markets Authority (ESMA) said holders of digital assets in the European Union will not be protected under the bloc’s Markets in Crypto Assets (MiCA) regulatory regime until December 2024 at the earliest and potentially not until July 1, 2026. ESMA noted that European digital asset investors will not benefit from the rights and protections of the new EU digital asset regulatory regime until at least December 2024. The statement by ESMA, the top EU-wide financial markets regulator, was an update on the transition timeline for the bloc’s landmark MiCA regulation, of which ESMA is the primary rulemaking and oversight authority, in cooperation with national authorities. “It is important for holders of crypto-assets and current or prospective clients of crypto-asset services in the EU to be aware that in addition to the risks inherent to crypto-assets, MiCA rules on the provision of crypto-asset services will not enter into application until December 2024,” said ESMA. The regulator explained that until that time, digital asset holders will not benefit from any EU-level regulatory and supervisory safeguards or the recourse mechanisms built into the MiCA regulation, such as the ability to file formal complaints with national authorities against digital asset service providers. In addition, “even after MiCA becomes applicable to crypto-asset service providers, Member States have the option of granting entities already providing crypto-asset services in their jurisdictions up to an additional 18-month transitional period during which they may continue to operate without a MiCA license.” This means that holders of digital assets and clients of digital asset service providers “may not benefit from full rights and protections afforded to them under MiCA until as late as July 1, 2026.” ESMA noted that during this transition period, local authorities will have limited powers to supervise unlicensed digital asset service providers, and in most cases, these…
The post ESMA: Digital asset investor protections won’t kick in until end of 2024 appeared on BitcoinEthereumNews.com.
The European Securities and Markets Authority (ESMA) said holders of digital assets in the European Union will not be protected under the bloc’s Markets in Crypto Assets (MiCA) regulatory regime until December 2024 at the earliest and potentially not until July 1, 2026. ESMA noted that European digital asset investors will not benefit from the rights and protections of the new EU digital asset regulatory regime until at least December 2024. The statement by ESMA, the top EU-wide financial markets regulator, was an update on the transition timeline for the bloc’s landmark MiCA regulation, of which ESMA is the primary rulemaking and oversight authority, in cooperation with national authorities. “It is important for holders of crypto-assets and current or prospective clients of crypto-asset services in the EU to be aware that in addition to the risks inherent to crypto-assets, MiCA rules on the provision of crypto-asset services will not enter into application until December 2024,” said ESMA. The regulator explained that until that time, digital asset holders will not benefit from any EU-level regulatory and supervisory safeguards or the recourse mechanisms built into the MiCA regulation, such as the ability to file formal complaints with national authorities against digital asset service providers. In addition, “even after MiCA becomes applicable to crypto-asset service providers, Member States have the option of granting entities already providing crypto-asset services in their jurisdictions up to an additional 18-month transitional period during which they may continue to operate without a MiCA license.” This means that holders of digital assets and clients of digital asset service providers “may not benefit from full rights and protections afforded to them under MiCA until as late as July 1, 2026.” ESMA noted that during this transition period, local authorities will have limited powers to supervise unlicensed digital asset service providers, and in most cases, these…
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