Italian, French, and Austrian regulators—Consob, AMF, andFMA—have proposed changes to the EU Markets in Crypto-Assets Regulation. Theregulators cited early inconsistencies in supervision across member states as akey concern. The proposals aim to align supervision of crypto-asset serviceproviders, improve cybersecurity, and centralize white paper submissions.Retail investors could experience indirect effects.Platforms targeting EU clients will need to comply with MiCA or equivalentrules. The measures may also impact CFD providers offering crypto derivativesvia EU-authorized intermediaries, promoting uniform regulatory standards andreducing operational risks.MiCA Implementation ChallengesMiCA came into effect on 30 December 2024. It requiresmarket participants offering crypto-related services in Europe to obtain priorauthorisation. The regulation provides a framework for supervising the cryptomarket. Digitalassets meet tradfi in London at the fmls25Early implementation, however, revealed significantdifferences in how national authorities enforce the rules. These gaps couldaffect investor protection and the functioning of the European internal market.Concerns About Non-EU PlatformsAuthorities also raised concerns about platforms outside theEU that serve European clients through intermediaries not covered by MiCA. Suchactivity may expose investors to unregulated risks and create unevencompetition for EU-based service providers.To address these issues, Consob, AMF, and FMA proposedtargeted improvements. Recommendations from the Financial Stability Board andIOSCO informed the proposals. You may find it interesting at FinanceMagnates.com: CFTCto “Explore” Allowing MiCA-Authorized Platforms to Serve U.S. Markets.Key measures include direct supervision by the EuropeanSecurities and Markets Authority of major crypto-asset serviceproviders. This aims to ensure consistent rule application and could reducesupervision costs.Stricter Rules for Non-EU PlatformsThe proposals also address non-EU platforms. Intermediariesexecuting orders for European clients should only use platforms compliant withMiCA or equivalent regulations. Regulators recommended independentcybersecurity audits before granting authorisation and periodically thereafter.Audits would cover asset protection, resilience to cyber-attacks, and incidentmanagement.White Paper Filing ChangesFinally, the regulators suggested clarifying the scrutinyprocess for white papers and establishing a single access point for managingtoken offerings, excluding stablecoins. This is intended to improve legalcertainty for issuers and centralize filings, reflecting the pan-European reachof most offerings.Authorities said the measures aim to provide consistentoversight, reduce investor risks, and support the competitiveness of Europeanmarket participants.This article was written by Tareq Sikder at www.financemagnates.com.