EU Regulators Warn of Offshore Cryptocurrency Risks Under MiCA Regulation

On August 1, the European Securities and Markets Authority (ESMA), the regulator responsible for overseeing financial markets in the European Union, issued a new opinion highlighting the significant risks posed by global cryptocurrency firms seeking partial authorization under Markets in Crypto Assets (MiCA) regulations and conducting significant business offshore.
The ESMA warning focuses on the complex organizational structures of many global cryptocurrency firms that purportedly use EU-authorized brokers to send orders to execution venues outside of the EU, often in offshore jurisdictions.