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Homepage > News > Business > EU watchdog backs MiCA amendments; Ireland drafts AML rules In another busy week for digital asset regulation in the European Union, the bloc’s top financial markets watchdog has recommended amending the EU’s landmark digital asset regulatory framework, the Markets in Crypto-Assets (MiCA) regulation. Meanwhile, Ireland looks set to draft “urgent” new digital asset rules ahead of the EU’s new package of laws aimed at cracking down on money laundering and terrorist financing. ESMA backs additional external audit requirements On October 16, the European Securities and Markets Authority (ESMA) released an official opinion on MiCA, encouraging the European Commission (EC)—the primary executive arm of the EU—to proceed with its proposal to update several aspects of the framework. Specifically, the Commission proposed to update the Regulatory Technical Standards (RTS) of MiCA to require applicant crypto-asset service providers (CASPs) and notify entities to provide the results of an external cybersecurity audit. This audit would include an assessment of “the good repute” of the CASP’s management body and checks regarding the absence of penalties in areas other than commercial law, insolvency law, financial services law, anti-money laundering and counter terrorist financing, fraud or professional liability—the standard areas checked for penalties.  ESMA was keen to emphasize that the goal of the RTS is to ensure a “thorough entry point assessment” for applicant CASPs and financial entities intending to offer digital asset services in the EU. “This will increase the resilience of the crypto assets market and enhance investor protection in the crypto-assets space,” said the financial markets watchdog. According to the statement, ESMA has already communicated its opinion to the EC, the European Parliament and the European Council, and it’s now up to those bodies to decide whether to go ahead with the amendments to MiCA. “The EC may adopt the…

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Filed under: News - @ October 21, 2024 9:23 am