ESMA Clarifies MiCA Stance on Crypto Staking

The European Securities and Market Authority (ESMA) has released an updated Q&A addressing the provision of staking services under the Markets in Crypto Asset Regulation (MiCA). Staking, a controversial topic in many jurisdictions, is not explicitly regulated by MiCA, which neither prohibits nor provides specific rules for it. Despite this, ESMA clarified that staking services are considered ancillary to custody services, thus requiring service providers to be authorized under MiCA. Firms offering staking alongside custody must ensure assets can be returned as agreed and obtain user consent, in accordance with Article 75 of MiCA. This update aims to guide crypto firms towards compliance amidst regulatory scrutiny.