ESMA provides guidance on MiCA best practices

The briefing, developed in close cooperation with National Competent Authorities (NCAs), promotes convergence and prevents regulatory arbitrage, providing concrete guidance about the expectations on applicant Crypto Asset Service Providers (CASPs), and on NCAs when they are processing the authorisation requests. 

For example, the briefing contains clear guidance on: 

• Substance and governance and the ability of CASPs offering their service in the EU to operate autonomously and with sufficient in-country personnel.
• Outsourcing and the effective limits to set regarding the externalisation of functions and services. 
• Suitability of personnel and the importance for CASPs, and particularly its executive management, to demonstrate effective technical knowledge of the crypto ecosystem.

The guidance in the briefing helps NCAs, applicants and the general public to operationalise MiCA and RTS obligations into concrete controls and checks. Consequently, it serves to maintain a strong regulatory framework characterised by a consistent, effective, and forceful supervision.