European Securities and Markets Authority (ESMA) Advice on Initial Coin Offerings and Crypto-Assets

Phone: 650.723.2465
Fax: 650.725.0253

Type: Regulation
Date: 01/09/2019
Agency: European Securities and Markets Authority (ESMA)
Jurisdiction: European Union
Type of Law: Guidance
Status: ESMA Advice for EU crypto-asset regulation
Official URL: External link

In the FinTech Action Plan, the Commission mandated the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) to assess the applicability and suitability of the existing financial services regulatory framework to crypto-assets. The advice received in January 2019 clearly pointed out that while some crypto-assets fall within the scope of EU legislation, effectively applying it to these assets is not always straightforward. Moreover, there are provisions in existing EU legislation that may inhibit the use of certain technologies, including DLT. At the same time, EBA and ESMA have pointed out that most crypto-assets are outside the scope of EU legislation and hence are not subject to provisions on consumer and investor protection and market integrity, among others.