ESMA has issued statement to clarify expectations for how unauthorised crypto asset service providers (CASPs) must wind down activities while also protecting investors after the end of the transitional period under the Markets in Crypto-Assets Regulation (MiCA) on 1 July 2026

ESMA has published its final report on the simplification of transaction reporting, setting out a clear path towards a ‘Report Once’ approach. ESMA’s review confirms that the main drivers of cost and complexity include frequent and unsynchronised regulatory changes, duplication of reporting across frameworks and channels, and dual-sided reporting and associated reconciliation processes.  

Taking into account the input from stakeholders, ESMA outlines a number of actions and operational improvements it will take forward to make it easier for retail investors to access suitable investment opportunities.  

ESMA will focus on three areas:

• streamlining disclosure requirements and tackling information overload for investors;
• reducing complexity in suitability and appropriateness assessments;
• simplifying MiFID II requirements on sustainability preferences.

ESMA published its Position Paper on “Building more effective and attractive capital markets in the EU”. The Paper includes 20 recommendations to strengthen EU capital markets and address the needs of European citizens and businesses.

ESMA will focus on strengthening supervision, enhancing the protection of retail investors, fostering effective markets and financial stability, enabling sustainable finance, as well as facilitating technological innovation and effective use of data.