European Union: Adopted ESMA Opinion to support the convergent application of MiCA

On 31 July 2024, the European Securities and Markets Authority (ESMA) adopted an Opinion to support the convergent application of the Markets in Crypto Assets Regulation (MiCA). The Opinion addresses risks posed by global crypto firms seeking authorisation under the MiCA Regulation for activities such as crypto brokerage while keeping significant operations, like intra-group execution venues, outside the European Union's regulatory scope. The Opinion highlights the risks associated with complex structures where execution venues fall outside MiCA's scope, and recommends that National Competent Authorities remain vigilant during the authorisation process, assessing global firms' business structures to prevent them from circumventing MiCA obligations. The Opinion calls for a case-by-case assessment of requirements related to best execution, conflict of interest management, client interests, and custody and administration of crypto-assets.