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ARTICLE · 29 JANUARY 2019

ESMA Advice On ICOs And Crypto-Assets

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Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers.

SpainTechnology

The European Securities and Markets Authority (hereinafter, "ESMA") has published on January 9, 2019 an Advice on ICOs and crypto-assets in order to clarify the existing legal regime applicable to crypto-assets that qualify as financial instruments.

After analyzing the different business models of crypto-assets, the risks, potential benefits and how they fit within the existing regulatory framework, ESMA has detected various problems related to the applicable regulatory framework. In this respect, ESMA differentiates between crypto-assets that qualify as financial instruments in accordance with the Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (hereinafter, "MIFID II") and crypto-assets that do not qualify as financial instruments.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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