On 31 May 2024, the European Securities and Markets Authority (ESMA) issued a final report on draft technical standards on certain requirements in relation to conflicts of interests of crypto-asset service providers (CASPs) under the Markets in Crypto Assets Regulation (MiCAR).

The aim of the draft technical standards is to specify the requirements for CASPs in identifying and addressing the existing or potential conflicts of interest.

The final report follows a consultation that ESMA issued on 12 July 2023. The consultation closed on 20 September 2023.

Among other things in the final report ESMA clarifies that although the conflicts of interest regime under MiCAR bears similarities with the MiFID II conflicts of interests regime, the two also differ on some points (for instance, MiFID II does not cover internal conflicts of interests which are covered in Article 3 of the draft regulatory technical standards and stem from Level 1) and therefore a copy and paste approach was not adopted. Instead, ESMA relied on the MiFID II regime, where appropriate, but also brought some changes to take into account supervisory experience of Member State competent authorities.

The final report has been sent to the European Commission and ESMA will provide further advice and technical guidance in this area if requested by the Commission.