CAPITAL MARKETS | Initial guidance on EU Regulation on crypto currency markets issued by CONSOB

On 30 August 2024, the Italian Council of Ministers approved the draft legislative decree for the adaptation of Italian legislation to the provisions of Regulation (EU) 2023/1114 on markets in crypto-assets (the “MiCAR”). Consequently, on 12 September 2024, CONSOB published its communication No. 1/24, providing operators in the crypto-asset sector with preliminary instructions on how to comply with the provisions of MiCAR. In particular, CONSOB invited any operators intending to take on the role of authorised crypto-asset service providers (“CASP”) to start their adaptation to the MiCAR promptly and sufficiently in advance, and to ensure maximum transparency to clients about the upcoming changes, with particular reference to any plans and implementation measures to support them. In more detail, CASPs will have to adopt organisational-procedural safeguards, among other things, including internal controls to ensure compliance with the obligation to act in a proper and professional manner and in the best interest of clients and potential crypto-asset holders. They will have to set up effective systems and procedures to prevent, detect and report possible cases of market abuse, and also provide potential clients with clear and correct information about the services provided and the crypto-assets concerned, in their marketing communications and subsequent communications to clients. CONSOB has declared itself available for preliminary discussions with the operators concerned in order to facilitate compliance with the new regulations.

Newsletter n. 101 – November 2024