Could MiCA Regulatory Reporting be a Disruption Event?

Per Anna Sciortino, Senior Policy officer at the European Single Market Authority (ESMA) in a post on LinkedIn, the Implementing Technical Standards on the Markets in Crypto Assets (MICA) white papers were adopted by the European Commission and published in the EU Official Journal.  That means, MICA crypto-assets white papers will need to be prepared using the Inline XBRL global standard based on a taxonomy ESMA is currently developing and on the templates included in the implementing regulation. This is a big win for the XBRL global standard.

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As I understand it, MiCA is a new regulation that will impact somewhere between 15,000 and 25,000 crypto asset issuers and offerors.  It seems to me that the "white paper" is similar to a management discussion and analysis.  The white paper needs to be updated whenever a significant event, similar to how in the US a 8-K needs to be provided to the SEC of a company when an event occurs that may impact a public company's stock price.

Could MiCA regulatory reporting be a disruption event?  It very well could be. Here is why I say that:
  1. Jason Meyers, the CEO and Lead Architect at Auditchain Labs AG says that he might make a tool for creating the Inline XBRL MiCA white papers available for "free" for  some period of time.  In two separate comments, stated (a) that Auditchain Labs may make an easy to use XBRL creation tool available for free for the first white paper of any crypto asset offeror or issuer, (b) might even consider making the tool available for free until 23 December 2026.
  2. This is a completely NEW data/information set which has never been available before. People could be very interested in this data/information set.
  3. The Pacioli.ai tool offers robust verification capabilities and could lead to this new MiCA data/information set being of significantly better quality as contrast to the ESMA listed companies information and SEC Edgar data/information sets which are also made available in Inline XBRL.  ESMA will very likely compare these different data/information sets.
  4. Perhaps if things go well with this "free" campaign; maybe another "free" campaign might be mounted for SEC public company reporting and ESMA listed company reporting.
  5. If the MiCA data/information set quality is high and the data aggregators making that data/information available; that could provide them with clues as to what the SEC EDGAR and ESMA listed company data/information set utility could look like.
  6. Inline XBRL is a unique approach to creating knowledge graphs.  If the Auditchain Labs AG software really is easy to use, it could point the way to other business professionals trying to make use of this new capability.
  7. It very well could be the case that reporting using XBRL would be easier than other reporting approaches like PDF and HTML.
  8. There is no legacy workflow to be replaced, this is a completely new workflow.
  9. It appears that VARA white papers will also, perhaps, be using XBRL.
  10. Change does not occur because people "change their mind"; change occurs because successive generations have different views. (Plank's Principle)
I don't know what is meant by "free".  There tends to be two definitions of free in the English language: "gratis" (at no monetary cost) and "libre" (with little or no restriction).


Modern accountancy is this way.

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