The European Securities and Markets Authority warns crypto companies operating globally of the potential risks that may arise while seeking authorization under MiCA.
The European Securities and Markets Authority (ESMA), the regulatory body responsible for overseeing the EU's financial markets, has issued a new Opinion highlighting the considerable risks posed by global crypto firms that seek partial authorization under the Markets in Crypto Assets (MiCA) regulation while conducting significant operations offshore.
On July 31, the ESMA released its MiCA-related opinion statement, which it has done on other occasions in the past following the implementation of new industry-wide regulations (i.e. in the aftermath of Brexit).
ESMA's latest warning focuses on the intricate organizational structures of many global crypto firms, which are known to use EU-authorized brokers to route orders to execution venues based outside the EU, commonly in offshore jurisdictions.
