ESMA publishes risk opinion on EU-authorized crypto brokers using non-EU execution venues

The European Securities and Markets Authority (ESMA) has published an opinion on the use of non-EU execution venues by global crypto firms. The European regulator recognises the risks associated with complex structures of global crypto firms whose execution venues fall outside the scope of MiCA. The opinion is part of ESMA and NCAs’ wider efforts to ensure the effective application of MiCA and convergent supervisory practices across the EU. ESMA’s intervention aims to address the risks posed by global crypto firms seeking authorisation for some of their crypto brokerage activities under the MiCA Regulation while keeping a significant portion of their organisation’s internal execution venues outside the EU regulatory scope. The regulator said that complex structures of global crypto firms may include the involvement of EU-authorised brokers that effectively route orders to intra-group execution venues outside the EU, which could lead to reduced consumer protection and an uneven playing field with EU-authorised execution venues. (Finance Feeds)