ESMA releases Q&A guidance on EU MiCA crypto regulation

The European Securities and Markets Authority (ESMA) published a new Q&A document on 29 July 2026 to clarify the application of the EU Markets in Crypto‑Assets Regulation (MiCA). The guidance, aimed at more than 270 crypto‑asset service providers already registered in the Union, details how MiCA’s rules interact with ESG rating requirements and the Markets in Financial Instruments Regulation (MiFIR). It also addresses the provision of crypto‑asset loans by crypto‑asset service providers (CASPs), stating that while MiCA does not regulate loan issuance per se, CASPs must comply with general obligations on transparency, client communication, risk disclosure and obtain explicit consent before using clients’ assets for lending. The Q&A seeks to ensure a uniform interpretation of MiCA across all EU member states and to avoid divergent readings that could undermine the single market.

The document underscores the need for CASPs to operate honestly and professionally, maintain adequate safeguards for client assets, and disclose the significant risks associated with crypto‑asset lending, including counter‑party and guarantee shortfalls. By providing concrete operational guidance, ESMA aims to strengthen market integrity and investor protection within the rapidly evolving crypto sector.