Details on how Binance is following the new MiCA stablecoin rules .
The new rules will come into effect across the European Economic Area (EEA) on June 30, 2024.
Stablecoins will be regulated in the EEA, which means in practice that only certain regulated companies will be able to issue and offer to the public stablecoins (those stablecoins will be “Regulated Stablecoins”).
Existing stablecoins that may not fall into this category will therefore be subject to certain restrictions and will be categorized as
“Unauthorized Stablecoins.”inance will restrict the availability of Unauthorized Stablecoins for EEA users across its product offerings.
Convert functions for Unauthorized Stablecoins will be maintained in a “sell-only” mode.
Spot trading pairs with Unauthorized Stablecoins will remain available until further notice.
Custody and wallet services of Unauthorized Stablecoins will continue.
Rewards across the platform will be changed to Regulated Stablecoins, BNB or other non-stablecoin tokens.
New borrowings of Unauthorized Stablecoins will be blocked in Margin.
New subscriptions, including Auto-Subscribe feature, involving Unauthorized Stablecoins will be blocked in Simple Earn Flexible and Locked Products.
New Loan subscription and new incremental collateral involving Unauthorized Stablecoins will be blocked in Binance Loans & VIP Loans.
New Auto-Invest subscriptions with Unauthorized Stablecoins will be blocked. New subscriptions of Dual Investment products with Unauthorized Stablecoins will be blocked before 2024-06-29 (UTC+3).
New subscriptions involving Unauthorized Stablecoins will be blocked in Cloud Mining before 2024-06-29 (UTC+3).
EEA users will not be able to send or receive any Unauthorized Stablecoins in Binance Pay.

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#Megadrop #BNBAnalysis #MiCA #ETHETFsApproved

The European Union is set to make history next year as the first major jurisdiction in the world to implement comprehensive and customized rules for the crypto sector. The law, approved by the European Parliament in April, makes it possible for crypto firms to operate across the EU's 27 member states if they manage to get authorized in one.

This profile is part of CoinDesk's Most Influential 2023. For the full list, click here.

A key figure behind the making of the landmark law was Stefan Berger, the center-right German lawmaker who negotiated the framework for the European Parliament.

As rapporteur for the Markets in Crypto Assets (MiCA) regulation (meaning he reported on the issue for the parliamentary committee that worked on legislative proposals), Berger was responsible for proposing amendments and running discussions with the Council that gathers member nations' heads of state.

As he steered MiCA through the EU's complex legislative process, he staved off efforts by lawmaker groups to limit the use of energy-intensive proof-of-work protocol that was broadly viewed by the crypto industry as a ban on Bitcoin. After FTX came crashing down in November 2022, Berger blamed it on the arrogance of its founder Sam Bankman-Fried instead of blockchain technology.

While skeptics questioned the strength of MiCA against bad actors, he pushed for the quick finalization of the legislation so that Europe will "have rules which rule this type of situation out from the word go."

The law, which offers crypto companies harmonious (or "passport-able") rulemaking across a bloc of close to 450 million people, is seen as a template for jurisdictions around the world to follow. Many in the U.S. crypto community compare MiCA's comprehensive legislation (for example, on stablecoins and exchanges) to the U.S.'s lack of lawmaking on digital assets.

Digital euro next

Now that MiCA's future is set, Berger is tasked with shepherding through Parliament the EU's grand plans for a digital euro, which might be an even bigger challenge than MiCA. EU lawmakers largely agreed that the crypto sector needed rules but they aren't exactly jumping at the idea of a central bank digital currency (CBDC).

A digital euro would require a lot of technical work potentially involving blockchain and have major privacy implications few lawmakers are on board with. Others welcome it as a necessary alternative to private crypto payments. With Berger at the helm, 2024 is shaping up to be another interesting year for crypto policy in Europe.

The ESMA has published a lengthy document requesting feedback on 5 aspects of MiCA.

By June 30th, 2024, the regulator will have published a final report based on feedback.

On October 5, the EU’s markets regulator, the European Securities and Markets Authority (ESMA), issued a second consultation paper on mandates for the Markets in Crypto-Assets (MiCA). The ESMA has published a lengthy document (307 pages) in which it requests feedback on five aspects of MiCA.

The Authority tracks quantitative measurements related to energy consumption, greenhouse gas emissions, and waste production, and a qualitative statement related to the effect of equipment used by blockchain network nodes on earth’s resources.

Stringent Compliance Protocols

Moreover, the European Securities and Markets Authority (ESMA) recommends mandating CASPs record trading and publishing date and time, crypto asset identity, price information, amount, venue of execution, and transaction ID to increase post-trade transparency.

CASPs should be allowed to keep transaction data in “the format they consider most appropriate,” as proposed by the European Securities and Markets Authority (ESMA), so long as they are able to transform the data into a defined format upon request from regulatory bodies.

By June 30th, 2024, the regulator will have published a final report based on comments received and submitted its technical standards to the European Commission. However, a third consultation package will be released in the first quarter of 2024.

In July, the ESMA published the prior consultation document. The European Securities and Markets Authority (ESMA) presented a plan in which crypto firms subject to MiCA registration would be required to provide additional data in the form of notifications to the NCAs of the country in which they would be registered.

Highlighted Crypto News Today:

Toncoin surges 9%. What Should Investors Do?

Brussels, DATE – The European Union is raising the bar for crypto asset service providers, with new shareholder vetting rules proposed as a part of the Markets in Crypto Assets regulation (MiCA). This unified framework seeks to harmonize crypto activities across its 27 member states, ensuring integrity, transparency, and regulatory compliance in the rapidly expanding digital currency sector.

Setting the stage with MiCA’s regulatory framework

MiCA, poised for implementation in December 2024, stands out as a landmark legislation in the evolving global cryptocurrency landscape. Its reach extends to crypto assets that are hitherto untouched by existing EU financial norms. Through MiCA, the EU is attempting to build an all-encompassing framework for various stakeholders in the crypto universe, be it issuers, service providers, or everyday users.

At its core, the legislation revolves around pivotal domains such as authorizations, rigorous supervision, unwavering consumer protection, market integrity, and maintaining financial equilibrium. MiCA’s overarching aim? To ensure crypto entities operate in a manner that neither compromises the robustness of the financial system nor jeopardizes public welfare.

Drilling down on ownership and governance standards

Recent consultations by the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have shed light on the nitty-gritty of what crypto asset service providers need to adhere to. The requirements emphasize responsible ownership and governance.

For shareholders boasting a qualifying stake (those who possess more than 10% of either capital or voting rights), the fit and proper criteria become crucial. Such stakeholders must not be tainted by past convictions, especially those linked to grave concerns like money laundering, terrorist financing, or any other infractions that can cast shadows on their reputability.

It’s not just shareholders who are under the microscope. Board members of crypto entities also face rigorous standards. These individuals must be deemed fit and proper, equipped with an impressive arsenal of knowledge, prowess, and experience that resonates with their roles. But it’s not just about qualifications; ethical considerations are paramount. Board members should embody values of honesty, and integrity, and display an unflinching commitment to independent decision-making.

EU regulators: Operational excellence and regulatory oversight

Delving deeper into the operational side, crypto service providers can’t afford to be lax. The regulations mandate the setting up of robust internal control systems. This spans across various facets, from risk management structures and compliance protocols to dedicated audit functions and judicious remuneration policies.

Moreover, transparency is the name of the game. These providers will be obligated to put their cards on the table, detailing their crypto holdings. In addition, they need to demarcate their business avenues in line with MiCA’s predefined categories, ensuring clarity for both regulators and consumers.

EU regulators aren’t merely playing the role of rule-setters; they are vigilant watchdogs. If crypto entities falter in their obligations, regulatory bodies have the teeth to act decisively. From suspending or revoking authorizations to imposing stringent sanctions or administrative actions, the regulators have a plethora of tools at their disposal to ensure compliance.

Conclusion

The EU’s MiCA law is an ambitious stride in bringing order to the Wild West of cryptocurrencies. By setting stringent criteria for stakeholders, demanding operational excellence, and ensuring robust regulatory oversight, the EU is aiming to sculpt a crypto ecosystem that’s both thriving and trustworthy. As the December 2024 implementation date inches closer, crypto asset service providers would do well to align with these norms, ensuring a smoother transition into a more regulated digital future.

The post Crypto Investors Are Unprotected Under EU Rules Until 2024: ESMA appeared first on Coinpedia Fintech News

The European Securities and Markets Authority (ESMA) has warned cryptocurrency investors in Europe that they are not yet protected under European Union cryptocurrency asset market rules, which will take time to come into effect. Under these regulations, known as the Markets in Crypto-Assets Regulation (MiCA), crypto investor protections will not be effective until at least December 2024, leaving investors exposed to potential losses. Even after December 2024, there is no guarantee that investors will be fully protected by MiCA until 2026, despite the regulations becoming applicable to crypto asset service providers in 2024.

Europe’s crypto investors are currently facing extended uncertainty as regulatory protections mentioned in the Markets in Crypto-Assets Regulation (MiCA) is facing delays. As per the European Securities and Markets Authority (ESMA), MiCA-based investor safeguards won’t come into effect until at least December 2024.

They highlighted in their statement that crypto-asset holders and clients of crypto-asset service providers will remain unprotected under EU’s crypto rules.

There is no guarantee that investors will enjoy complete protection under MiCA, even after December 2024. EU countries have the option to grant crypto service providers an additional 18-month “transitional period,” also known as a “grandfathering clause.” It will allow them to operate without a license.

It means that until July 1, 2026, investors will not benefit from protections under MiCA. The ESMA underscored that most National Competent Authorities (NCAs) will have limited supervisory powers during this transitional period. They will be primarily governed by existing anti-money laundering regimes. However, they are less detailed than MiCA.

MiCa timeline Source: ESMA Reminder of ongoing risks in Crypto market

ESMA’s warning serves is reminder to retail investors that there is no such thing as a safe crypto asset. That statement will stay true even after MiCA’s implementation.

ESMA reminds holders of crypto-assets and clients of crypto-asset service providers that MiCA does not address all of the various risks associated with these products. Many crypto-assets are by nature highly speculative

The ESMA has issued this warning soon after it released MiCa’s second consultation paper on October 5. This was after MiCa was approved in June 2023

On one hand MiCA has been praised for bringing standardization and regulatory clarity to the market. On the other hand, concerns have been raised regarding its impact on innovation and privacy. The one-size-fits-all approach by EU regulators has been criticised because fails to account for the unique features of decentralized systems. It could potentially stifle the growth of crypto projects.

The post European Crypto investors face extended wait for regulatory protections as ESMA issues warning appeared first on Todayq News.

As we approach economic data and being an election cycle with key dates ahead, let's take a look at some critical market indicators and what they could mean for investors.
Falling DXY (US Dollar Index)
The DXY measures the value of the US dollar against a basket of foreign currencies. A falling DXY typically suggests that the dollar is weakening. This can have several implications:
- Export Competitiveness: A weaker dollar makes US exports cheaper and more competitive abroad.
- Inflation Pressures: Imported goods become more expensive, potentially leading to higher inflation.
- Foreign Investment: A lower dollar can attract foreign investment into US assets, as they become cheaper for foreign buyers.
Rising US 10-Year Treasury Yield
The 10-year Treasury yield is a key benchmark for borrowing costs and overall economic sentiment. A rising yield generally indicates:
- Expectations of Economic Growth: Investors may be anticipating stronger economic performance and higher inflation.
- Tighter Financial Conditions: Higher yields can lead to increased borrowing costs for consumers and businesses, potentially slowing down economic activity.
Federal Reserve's Role
The Federal Reserve plays a crucial role in managing economic stability and market confidence. Here’s how the Fed might intervene to keep markets steady:
- Monetary Policy Adjustments: The Fed can adjust interest rates and engage in quantitative easing to inject liquidity into the markets.
- Communication Strategies: Clear and consistent communication from the Fed can help manage market expectations and reduce uncertainty.
- Market Operations: The Fed might buy or sell government securities to influence interest rates and provide necessary support to financial markets.
Election Cycle Impact
With the upcoming election on November 5, market dynamics can be influenced by political developments:
- Policy Uncertainty: Markets often experience volatility leading up to an election due to uncertainty about future policies.
- Stimulus Expectations: Anticipation of post-election fiscal stimulus can buoy market sentiment.
- Historical Trends: Historically, election years tend to see positive market performance, as policymakers aim to maintain economic stability.
Outlook
Given these factors, it's reasonable to expect markets to trend upwards as we approach the election. The Fed’s likely interventions to ensure liquidity and stability, combined with political considerations, should help maintain positive momentum and prevent panic.
Key Takeaway: Stay informed about these trends and the Fed’s actions, as they can provide valuable insights into market movements. Maintaining a long-term perspective and staying attuned to policy developments will be crucial in navigating the months ahead.

#AltSeasonComing #MiCA #FIT21 $XRP $

The Dutch Authority for Financial Markets (AFM) has taken a hard stance on cryptocurrency regulations, despite the strict regulations already in place in the Netherlands.

On March 18th, Laura Van Geist, the chairman of the AFM, expressed her opinion that the EU’s cryptocurrency regulation law, MiCA, will only partially address cryptocurrency risks. She emphasized that the country will take a hard line regarding cryptocurrency regulation, even if companies are outflowed abroad, and “will not lower the standards to attract business.”

Van Geist believes that cryptocurrency is difficult to grasp and vulnerable to fraud and manipulation, and its value is mainly based on speculation, which has no potential value. While the MiCA law includes the requirement that wallet providers and exchanges obtain licenses to operate in the EU within 18 months, Van Geist argues that law enforcement does not need to be so lenient.

This is not the first time that the AFM has taken a strong stance against cryptocurrencies. In May 2022, Paul-Willem van Gerwen, Dutch AFM head of capital markets and transparency supervision, called for individual investors to be banned from trading in cryptocurrency derivatives. While the UK has already banned individuals from trading in crypto derivatives in 2020, the Netherlands has not yet taken action.

It is clear that the Dutch regulatory authorities are taking a cautious approach when it comes to cryptocurrency, and they are not willing to compromise on their standards to attract business. The government is willing to go the extra mile to protect investors and ensure that the cryptocurrency market is free from fraudulent practices and manipulation. With the increasing popularity of cryptocurrencies, it remains to be seen whether other countries will follow the Dutch example and tighten their regulatory oversight of this nascent market.

#VanGeist #MiCA #azcoinnews #crypto2023 #BTC

This article was republished from azcoinnews.com

On March 20, Circle’s Director of EU Strategy & Policy, Patrick Hansen, published an article on the Circle blog discussing the impact of the Markets in Crypto-Assets Regulation (MiCA) on the European Union’s (EU) crypto industry.

The article highlights how MiCA will change the way crypto companies operate in the EU, providing them with the ability to serve the entire EU market with just one license. Before MiCA, crypto companies had to comply with the regulatory frameworks of each of the 27 member states, leading to higher costs and limiting their competitiveness compared to US or Asian counterparts.

MiCA’s implementation is expected to have several positive impacts on the EU crypto industry, including increased competitiveness and market share for regulated businesses, institutional adoption and activity, and potentially becoming a huge opportunity for economic and technological revival in the EU.

However, the success of MiCA will depend on the implementation standards and enforcement practices developed by EU supervisory authorities in the next 12-18 months. Some of MiCA’s passages carry the risk of burdening industry participants, and their full effects will only become apparent once technical implementation standards provide practical operational guidelines.

MiCA has the potential to become a globally adopted regulatory standard like the GDPR is today for privacy. The EU market is the largest internal market in the world with 450 million relatively wealthy consumers. By the sheer size of its market, MiCA will likely persuade many companies worldwide to adopt its operating standards, possibly on an international scale, in order to maintain globally streamlined operations and products. The article also notes that the longer the US regulatory vacuum for crypto-assets persists, the greater the global impact of MiCA standards will be.

In conclusion, the MiCA regulation could represent a positive boost for the EU crypto industry and the EU economy overall, but its success is highly dependent on the development of practical implementation standards. MiCA could set global standards for crypto regulation, but its practical success is the only thing that will matter at the end of the day.

#MiCA #EU #Circle #Stablecoin #azcoinnews

This article was republished from azcoinnews.com

The European Parliament went ahead and did it: Today, after years of deliberations and at least two official delays, the landmark Markets in Crypto-Assets (MiCA) regulatory framework was voted in. European Union legislators also passed a separate crypto-related rule known as the Transfer of Funds regulation that imposes stronger surveillance and identification requirements for crypto operators, CoinDesk’s Jack Schickler reported.

The rules were described as a "world first” by the European Commission's Mairead McGuinness, and also an “end of the Wild West era for crypto assets," according to Green Party lawmaker Ernest Urtasun. The laws, which will be enforced at the state-level, still need to be officially approved by the supra-governmental body called the EU Council, are just about cleared to take effect next year. (The Council’s approval is more of a formality at this point, considering it already approved the text of the law last year.)

This article is excerpted from The Node, CoinDesk's daily roundup of the most pivotal stories in blockchain and crypto news. You can subscribe to get the full newsletter here.

For many, MiCA represents a crucial step forward for the crypto industry. It’s the first major attempt to provide a comprehensive set of rules for crypto companies so they know in advance what they can and cannot do and where their responsibilities lie if they want to operate in the 27-nation strong trading bloc. The European Union hopes it sets the global standard (and, in some sense, is worried about MiCA’s effectiveness in the EU if similar rules are not adopted everywhere).

CoinDesk has written a number of overviews of the legal framework. But. in short, MiCA requires crypto firms – like wallet providers and exchanges – to be licensed by the EU, and comply with money laundering and terrorism finance safeguards if they want to serve EU-based customers. Some have balked at the reporting standards, which will undoubtedly weaken privacy for crypto users in the name of customer safety and national security.

But considering how regulatory uncertainty has damped the crypto industry’s ability to grow over the past decade (that’s been a recurring line from crypto lobbyists and advocates), the move brings some amount of welcomed transparency and stability. Binance CEO Changpeng Zhao tweeted his support, calling MiCA “a pragmatic solution” with which his exchange will comply.

All this is in comparison to the two other massive crypto markets – the U.S. and China. At least on paper, China has officially banned all crypto activity – but recent smoke signals suggest that freeze could thaw (at least in a Hong Kong financial sandbox). The country has not been able to stamp out crypto trading or mining entirely, and legitimizing some portions of the industry could be a boon for those looking to return.

Meanwhile, in the U.S. there seems to be a coordinated effort of elected representatives, unelected regulators and policymakers of both major political parties as well as the Federal Reserve and Biden administration to get crypto out of the wider economy. It seems to be part of what President Joe Biden called a “whole-of-government approach” to dealing with crypto in an executive order at the beginning of 2022, before the worst excesses and calamities of the year came to light.

There are still authorities in the U.S. working to legitimize and regulate crypto, even if some high-powered officials like Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), are opposed to writing new rules. According to Gensler, the financial rules already on the books are clear enough to cover the novel peculiarities of decentralized tech. Political infighting between those who want to give crypto time to find its legs and those who prefer knee-capping it has left the entire industry worse for wear.

Right now, ether (ETH), the second-largest cryptocurrency by market cap and the native token of the Ethereum blockchain, is in a situation similar to Schrödinger’s security – stuck in a superposition of being both lawful and not, essentially because Gensler has said ether may and may not have fallen afoul of the Howey Test definition of a security.

See also: SEC Lays Its Cards on the Table With Assertion That DeFi Falls Under Purview  

Such legal insecurity has led the chief executive of Coinbase, the largest U.S. crypto exchange to say it may have to leave the country.You can say it’s an empty threat considering Coinbase’s business is built around extracting fees from U.S. customers, but Brian Armstrong is hardly alone.

In all fairness, Gensler is calling for common-sense oversight of increasingly powerful financial rails. Boil down what he wants – for exchanges to register with the SEC and bulk up their customer identification systems – and I’m sure it’s not too far off from the EU’s new standards. Of course, the difference between the EU and U.S. is that one took a “whole-of-government” approach to dealing with crypto, while the other merely says it will.

Native USDC on zkSync

Native USDC on zkSync: A New Era for Transactions
Circle's USDC stablecoin recently launched as a native asset on the zkSync Layer 2 scaling solution for Ethereum. This integration marks a significant development for both zkSync and the broader blockchain ecosystem. Here's a breakdown of what it means:
What is Native USDC on zkSync?
Previously, USDC existed on zkSync as a bridged asset, meaning it originated on the Ethereum blockchain and was transferred to zkSync through a bridge. Now, with the native integration, USDC becomes a core part of the zkSync ecosystem, with several advantages:
Faster and Cheaper Transactions: Native USDC transactions leverage zkSync's technology, enabling significantly faster and cheaper transactions compared to using USDC on the Ethereum mainnet.Improved Liquidity: The transition from bridged USDC to native USDC is expected to gradually increase liquidity within the zkSync ecosystem. This can benefit users and developers building applications on zkSync.Seamless Integration: Native USDC allows for easier integration with zkSync-based decentralized applications (dApps) compared to bridged USDC.

Benefits of Native USDC on zkSync:
Enhanced User Experience: Faster and cheaper transactions with USDC will improve the overall user experience within zkSync dApps.Increased Scalability: By utilizing zkSync's technology, native USDC can handle a higher volume of transactions, contributing to the scalability of the zkSync ecosystem.Wider Adoption: Easier integration and a potentially more efficient system can attract more developers and users to zkSync, expanding its reach.
Overall, the launch of native USDC on zkSync is a positive step forward. It promises faster, cheaper, and more user-friendly transactions with USDC within the zkSync ecosystem.
Here are some additional points to consider:
Security: While zkSync offers security benefits, it's still under development. It's crucial to stay updated on the project's security audits and best practices for secure transactions.Regulation: As a regulated stablecoin, USDC brings a layer of trust and transparency to the zkSync ecosystem. However, it's important to understand any regulatory implications associated with using USDC on zkSync.

The European Union's Markets in Crypto-Assets Regulation (MiCA), which came into effect in June 2023, plays a significant role in regulating stablecoins within the European Economic Area (EEA). Here's a breakdown of key points:

MiCA and Stablecoins
Clarity and Consistency: MiCA establishes a clear and consistent regulatory framework for crypto-assets, including stablecoins, across all EU member states. This eliminates the need for individual regulations within each country.Focus on Transparency and Governance: MiCA emphasizes transparency and robust governance for stablecoin issuers. Issuers must have proper authorization, capital reserves, and risk management procedures in place.Types of Stablecoins: MiCA differentiates between different types of stablecoins based on their underlying assets:Fiat-backed stablecoins: These are pegged to traditional currencies like the Euro or USD. MiCA requires issuers of fiat-backed stablecoins to hold adequate reserves of the equivalent fiat currency. Only credit institutions and electronic money institutions (EMIs) can issue fiat-backed stablecoins under MiCA.Asset-referenced tokens: These are pegged to other assets like commodities or cryptocurrencies. MiCA's requirements for asset-referenced tokens might differ depending on the specific asset.

Thanks for reading and following guys! Cheers and let's load big bags in this bullrun 💰💰💰
#airdropking #MiCA #ZkSync #Stablecoins
$ZKS ? :) 🚀🚀🚀

CryptosHeadlines.com - The Leading Crypto Research Network:

The EU’s financial regulator has reiterated that cryptocurrencies are risky, despite the bloc’s recent #MiCA proposals.

The EU financial regulator has warned that cryptocurrencies are still risky, even after the bloc issued its first set of MiCA proposals. The regulator said that investors should be aware of the risks before investing in cryptocurrencies.

ESMA published a consultation paper on July 12. The paper discusses technical standards for the Markets in #Crypto-Assets (MiCA) regulation.

ESMA is asking for feedback from all stakeholders on how to regulate crypto assets. They are also asking for confidential information from crypto firms, such as their expected revenue, number of white papers, and how they use on-chain and off-chain trading.

Applicants must prove that they will not mix client funds with crypto assets, and that they will not use the assets for their own company. They must also provide information about the security of their ICT system and the underlying distributed ledger technology.

Participants must submit their responses by September 20th:

The regulator will hold a second round of consultation in October to discuss sustainability and record-keeping. The third round will take place in early 2024 and will focus on how foreign companies can serve #EU consumers.

The new MiCA proposals require crypto service providers to handle customer complaints in a specific way. They also lay down conflict-of-interest rules for the virtual assets industry.

EBA urges stablecoin issuers to prepare for MiCA:

MiCA was approved by the European Parliament in April and the EU Council in May. It will come into force in 2024 and will be fully implemented by 2025.

The law will allow crypto exchanges and wallet providers to operate in all 27 EU countries with a single license.

The European Banking Authority (EBA) issued a press release on July 12th.

The EBA urged #stablecoin issuers to start preparing for MiCA now, so they won’t have to rush to comply with the guidelines when they’re implemented.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

$BTC $ETH $BNB

IOTA aligns with MiCA in a strategic move for growth in EU’s evolving crypto regulations.

MiCA Bill comes with key regulations, VASP license, KYC, and blockchain integration.

Besides IOTA, AlephZero and Nexera have also aligned with MiCA.

IOTA’s recent alignment with the European Union‘s MiCA bill signifies a strategic move within the evolving regulatory landscape. The Markets in Crypto-Assets (MiCA) bill, initially met with concerns, reveals promising opportunities for innovation and growth in the crypto space.

#IOTA's alignment with the EU's #MiCA bill represents a strategic move to navigate the evolving regulatory landscape while capitalizing on opportunities for innovation and growth. MiCA, or Markets in Crypto-Assets, initially raised concerns within the crypto community, but a… pic.twitter.com/59uHxgqfPv

— Collin Brown (@CollinBrownXRP) November 13, 2023

MiCA, a regulatory bill initiated by the EU Commission and finalized in March 2022, introduces key elements crucial to understanding its impact on the crypto sector. The core decisions in this bill are as follows.

Firstly, the VASP License Mandate. Here, MiCA dictates that any crypto provider operating within the EU must secure a Virtual Asset Service Provider (VASP) license. This license is essential for legally providing various crypto services, including transfers, custody, lending, and borrowing.

Secondly, the bill enforces Know Your Customer (KYC) regulations on non-custodial wallets, aiming to enhance transparency and security in the crypto space. Next, MiCA addresses potential risks associated with algorithmic stablecoins by prohibiting their use as digital assets. Finally, MiCA introduces additional rules for token issuance processes and explores the integration of blockchain technology in traditional markets.

With MiCA set to come into full effect in December 2024, the possibility of witnessing a regulated digital asset market in the EU by the following year is strong. However, MiCA is just one aspect of the EU’s approach to fostering blockchain innovation. 

The EU has been actively collaborating with industry players in various projects. These projects include IOTA ($IOTA ), AlephZero ($AZERO), and Nexera ($NXRA). The International Association for Trusted Blockchain Applications (INATBA), comprising over 100 members, plays a significant role in assisting MiCA’s progression, balancing innovation and regulation.

While MiCA appears as an effort to regulate crypto, it underscores the EU’s commitment to responsible growth and innovation. The alignment of projects like IOTA with MiCA showcases a dedication to responsible growth and innovation within a regulatory framework.

Read Also

EU Leads the Way in Crypto Legislation with MiCA’s Enactment

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IOTA Stardust Update and Network Fork Sees Support from Binance and Bitpanda

IOTA 2.0 Revolutionizes Consensus with Slot Commitment Chains

IOTA 2.0 Pivoting to DAGs, Spells the End of Blockchain Woes

The post IOTA Strategically Aligns with EU’s MiCA Bill to Navigate Regulatory Landscape appeared first on Crypto News Land.

The Electronic Money Association requested the Department of Finance a most extended transition period before implementing the MiCA regulation.

According to a report by the Independent, the organization, which has major fintech players such as Revolut and PayPal, among others, wrote to the EU regulators asking for more time before applying the new regulatory framework.

The MiCA framework will require crypto companies to obtain authorization from a national competent authority before offering their services in the EU. It will also impose capital requirements, governance standards, disclosure obligations, and consumer rights for crypto firms.

You might also like: Malta takes next steps to align with EU’s MiCA regulation

The MiCA is expected to come into force in December 2024, but some crypto companies are hoping for a more extended transition period of up to five years. They argue that the new rules could be more complex and costly to implement, especially for smaller and more unique players in the industry. They also fear that the regulations will stifle innovation and competition in the crypto space.

The background of MiCA can be traced back to the increasing popularity and adoption of cryptocurrencies and digital assets, which have raised concerns regarding investor protection, market integrity, and financial stability. The need for a harmonized regulatory framework across the EU has created a fragmented and uncertain regulatory landscape for crypto-assets.

One of the critical challenges of implementing MiCA is striking the right balance between regulation and innovation. The crypto market is known for its fast-paced and innovative nature, and overly burdensome rules could stifle innovation and hinder the industry’s growth. Therefore, regulators must carefully design regulations that provide adequate investor protection without stifling innovation.

Another challenge is the cross-border nature of the crypto market. Geographical boundaries do not bind cryptocurrencies and digital assets, and therefore, a harmonized regulatory approach is necessary to ensure a level playing field for market participants across the EU. Coordinating and aligning regulations among member states can be complex, requiring close collaboration and cooperation between regulators.

Additionally, the evolving nature of the crypto market poses a challenge for regulators. The technology and market dynamics are constantly changing, and regulators must adapt and update the regulatory framework to keep pace with these changes. This requires a flexible and agile approach to regulation, which can be challenging in a highly regulated environment.

You might also like: EU’s MiCA rules could prohibit MEV activities on Ethereum