The European Securities and Markets Authority (ESMA) has released a comprehensive set of proposals outlining how crypto companies operating within the European Union should be authorized, marking the first use of new powers granted under the Markets in Crypto Assets (MiCA) law. As part of the consultation, which runs until September 20th, ESMA is requesting confidential information from crypto companies regarding their expected revenue, number of white papers, and use of on- and off-chain trading.

MiCA, which will come into effect in 2024, will allow wallet providers and exchanges to operate across the EU with a single license and establish reserve requirements for stablecoins linked to the value of other assets. ESMA plans to conduct additional consultations in October on sustainability and record-keeping, with a final round scheduled for early 2024 to address issues such as when crypto will be considered a security and how foreign companies can serve EU clients.