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Crypto Firms May Need to Split Services into Separate Companies Under MiCA

Crypto Firms May Need to Split Services into Separate Companies Under MiCA
The European Securities and Markets Authority (ESMA) has released an opinion document outlining significant changes to its conflict-of-interest requirements for Crypto-Asset Service Providers (CASPs) under the Markets in Crypto-Assets Regulation (MiCA). The new framework suggests separating conflicting services into separate legal entities, implementing personal transaction monitoring, and broadening the definition of remuneration. ESMA's modifications aim to enhance investor protection and market integrity. The changes propose stricter management of acute conflicts of interest, comprehensive monitoring of personal transactions, and a comprehensive definition of remuneration. CASPs will need to establish monitoring procedures, transparent remuneration disclosure frameworks, and organizational structures to prevent conflicts of interest. However, industry experts believe that the crypto industry is not yet ready for MiCA implementation.

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