On 24 January 2025, the European Securities and Markets Authority (ESMA) issued an opinion on the regulatory technical standards (RTS) specifying certain requirements in relation to conflicts of interest for crypto-asset service providers (CASPs) under the Markets in Crypto-Assets Regulation (MiCAR).

On 31 May 2024, ESMA published its final report on the draft RTS to further specify the requirements for the policies and procedures to identify, prevent, manage, and disclose conflicts of interest, as well as the details and methodology for the content of the disclosure by CASPs of the general nature and sources of conflicts of interest and the steps taken to mitigate them (RTS on Cols). The draft RTS on CoIs were then submitted to the European Commission (Commission) for adoption. The Commission subsequently notified ESMA that it intended to adopt the draft RTS on CoIs with amendments. The Commission also referred to the possibility for ESMA to submit a new draft of the RTS on CoIs reflecting the proposed amendments.

In the opinion, ESMA suggests a limited number of changes to the amendments proposed by the Commission. Among other things ESMA suggests keeping the provisions relating to personal transactions as a self-standing article (Article 6, Policies and procedures on conflict of interest in the context of personal Transactions) on the basis that personal transactions may be problematic not only because they may be conflicting with the interest of the CASP but also with the interests of one or more clients.

Next steps

ESMA has adopted the opinion, which is being communicated to the Commission, with copies to the European Parliament and the Council.

The Commission may adopt the draft RTS on CoIs with the amendments it considers relevant or reject it.

The European Parliament and the Council may object to an RTS adopted by the Commission within a period of three months.