ESMA published Advice Initial Coin Offerings and Crypto-Assets a statement document discussing the main topics around crypto Markets. [Reading Time:40 sec]

– Where crypto-assets qualify as transferable securities or other types of MiFID financial instruments, a full set of EU financial rules are likely to apply.

– ESMA believes that the absence of applicable financial rules leaves consumers exposed to substantial risks.

– Where crypto-assets do not qualify as MiFID financial instruments and unless they qualify as electronic money, they are likely to fall outside of the existing EU financial services rules, in which case investors will not benefit from the safeguards that these rules provide.

ICO trading platforms

– ESMA argue that ICO’s could represent an attractive, although risky, investment opportunity, including for smaller investors that do not typically get access to early-stage financing investments.

– Furthermore, in the end ESMA provides a Glossary with definition Proof of work, Stake, Smart contract and many other specific expressions for the sector.

MiFID II IMPROVEMENTS

MiFID II and MiFIR will ensure fairer, safer and more efficient markets and facilitate greater transparency for all participants. New reporting requirements and tests will increase the amount of information available, and reduce the use of dark pools and OTC trading. 

ESMA, having completed the technical standards and technical pieces of advice, has contributed to the smooth implementation of MiFID II/MIFIR