EU Securities Regulator Seeks Feedback on Classifying Crypto as Financial Instruments


The European Securities and Markets Authorities (ESMA) has requested public input to aid in the assessment of criteria for categorizing cryptocurrency assets as financial instruments or otherwise.

Meanwhile, this follows the development of the regulations in August of last year when the European Parliament passed the Europe Markets in Crypto Assets (MiCA).

Europe Crypto Regulations: An Ongoing Discussion

The statement explains that the MiFID does not include a “one-size-fits-all” definition for all types of financial securities. It says not having a common definition does make it more difficult to actually define and apply a standardized test to what is considered a financial instrument.

“National competent authorities and market participants should take into account whether the crypto-asset is a digital representation of value or rights, capable of being transferred and stored using DLT, including whether these value or rights represent a right vis-à-vis the issuer, aligning with the definition of ‘crypto-asset’ within the meaning of MiCA.”

The regulatory consultation comes amid the growing crypto industry in Europe. According to Statista, the European crypto market could hit $18.5 billion in annual revenue by 2028.

Meanwhile, recent survey data from crypto exchange Binance suggests that approximately 73% of European citizens are optimistic about the future of crypto.

Furthermore, almost 55% of those survey participants use crypto for everyday purchases.

Europe Actively Seeking Crypto Regulatory Clarity

However, it highlights the exclusion of non-transferrable digital assets, like email and social media accounts, from the regulations of MiCA.

“National competent authorities and market participants should ensure that digital assets that are non-transferable to other holders and that are only accepted either by the issuer or by the offeror do not fall within the definition of crypto-assets and should be excluded from the scope of MiCA.”

For some time now, Europe has been actively working to achieve regulatory clarity.

On January 18, BeInCrypto reported that the European Union had amended its anti-money laundering laws. It has expanded the obliged entities required to report on crypto transactions exceeding €1,000.

Meanwhile, the UK had already taken steps to regulate crypto even before leaving the EU.

In 2019, the Financial Conduct Authority (FCA) published key guidance. It clarified that crypto could be classified as “security tokens, e-money tokens, or unregulated tokens,” depending on their characteristics.

However, the ongoing crypto debate has not stopped major players from offering crypto services within the region. In December 2023, Robinhood launched crypto trading services in the European Union. The trading platform offers 26 cryptocurrencies to European citizens, including Solana, Polygon, and Cardano.

Source : BeInCrypto / Jan 29, 2024 logo


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act. How we keep your money safe.