The European Securities and Market Authority (ESMA) has reiterated the rules on crypto staking under the Markets in Crypto Asset Regulation (MiCA). This clarification comes as crypto firms strive to comply with the guidelines.
Staking remains a contentious issue globally, with regulators like the U.S. SEC taking legal actions against firms providing such services. ESMA stated that MiCA does not ban staking but treats it as ancillary to custody services. Thus, staking service providers must be authorized under MiCA.
A notable feature of MiCA is its requirement for crypto asset service providers (CASPs) to comply with specific disclosures. CASPs must ensure the return of digital assets as per agreements and obtain express consent from users before staking their assets.
This announcement addresses concerns about asset loss and user access, highlighting the strategic importance of regulatory clarity in the evolving crypto landscape.
