The European Securities and Markets Authority (ESMA) has recently published clarifications on the application of European rules for financial markets. This move is significant as it aims to provide greater clarity on the regulation of crypto assets.
According to ESMA's guidelines, platforms that hold customer assets must be able to return the same type of crypto-asset held for the customer, not just the equivalent in cash or another digital asset. This clarifies the distinction between custody services and conversion or exchange services.
The authority also emphasizes that crypto service providers cannot retain interest generated by customer funds deposited in credit institutions. The income must be transferred to the customer as it comes from their money.