Regulation
Europe harmonizes rules with MiCA
8.30pm ▪ 3 minute read ▪ by Mikaia A.
Europe is clearly showing its seriousness in regulating cryptocurrencies with the announcement of new guidelines under the MiCA regulation. On July 12, European banking and financial authorities published these guidelines to standardize the classification of cryptocurrencies. Today, we dive into these new regulations and their potential impact on the cryptocurrency market.
A New Era for Cryptocurrencies
Europe is making great strides in regulating cryptocurrencies, especially stablecoinsOn 12 July, the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) presented a series of guidelines for the classification of cryptocurrencies pursuant to the MiCA regulation.
The goal is to establish a common and standardized approach to categorize the different forms of cryptocurrency.
These new rules include a series of questions to determine whether a token should be classified under MiCA or falls into another category, such as electronic money tokens (EMTs) or asset-referenced tokens (ARTs).
Broadcasters must now provide detailed legal opinions to clarify the classification of their tokens.
It is essential to note that these guidelines also include explanatory templates and standardized tests, designed to help market participants and supervisors adopt a uniform approach.
“We are aiming for a harmonized classification of cryptocurrencies, which will bring greater clarity and legal certainty for investors,” according to an ESMA official.
The MiCA regulation roadmap
The implementation of the First MiCA regulation on stablecoins took place on June 30 and further arrangements are expected by December 2024.
Circle, the issuer of the USDC and EURC stablecoins, has already compliant with MiCA standardsdemonstrating the speed with which the market is adapting.
The new guidelines also include a public consultation open until mid-October and a virtual hearing is scheduled for September 23.
Key points of the new regulation:
- Introduction of a series of questions to classify tokens;
- Explanatory templates and legal opinions required for each token;
- Public consultation and virtual hearing to discuss the guidelines.
These steps show that the European Union is serious about harmonizing cryptocurrency rules, aiming to create a stable and transparent environment. The planned standardization should offer better protection for investors and encourage innovation in the cryptocurrency field.
The MiCA regulation is a decisive step forwardproviding essential guarantees to investors and improving transparency in the cryptocurrency market in Europe.
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Mikaia A.
The blockchain and cryptocurrency revolution is happening! And the day the impacts are strong and the most vulnerable economy in the world is affected, against all hope, you will say that I was for that I chose
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.