On the 31st of July 2024, the European Securities and Markets Authority published its Opinion to address the risks posed by global crypto firms seeking authorisation under Regulation 2023/1114/EU (MiCAR) for part of their activities (crypto brokerage) whilst keeping many of their group activities (namely, intra-group execution venues) outside MiCAR’s scope. ESMA recommends national competent authorities to assess global firms’ business structures on a case-by-case basis, outlining the specific requirements to be met regarding best execution, conflicts of interest, the obligation to act honestly, fairly and professionally in clients’ best interests, and the obligation regarding the custody and administration of crypto-assets on clients’ behalf.
