EU states approve the Markets in Crypto Assets (MiCA) rules, becoming the first major global jurisdiction with a crypto licensing regime, taking effect in 2024
The European Union has taken a major step towards regulating the crypto industry by approving new rules on crypto assets. The EU Council approved the Markets in Crypto Assets regulation (MiCA) which will require crypto firms to obtain a license to operate in the EU and impose rules on stablecoin issuers. The new rules aim to better protect investors, prevent money laundering and fraud. The EU finance ministers also agreed on new measures to force crypto firms to disclose customer information to tax authorities in order to combat tax evasion. If approved by the European Parliament, the new laws and tax rules will take effect in mid-2023 and represent the first comprehensive crypto regulatory framework for a major jurisdiction.
EU Finance Ministers Approve Landmark Crypto Rules and Anti-Money Laundering Measures
On Tuesday, the finance ministers of the European Union (EU) unanimously approved the Markets in Crypto Assets regulation (MiCA), which requires crypto firms to seek a license to operate across the bloc and stablecoin issuers to hold suitable reserves.
SEC Commissioner suggests Europe's crypto regulation as a model for the US
Hester Peirce, the Republican leader at the US Securities and Exchange Commission, has suggested that Europe's cryptocurrency regulations could serve as a model for the US. Speaking at a Financial Times event, Peirce praised the Markets in Crypto Assets law (MiCA), which was passed by EU lawmakers in April. The law aims to ensure that crypto transfers can always be traced and suspicious transactions can be blocked. Peirce also expressed her lack of optimism about the current regulatory system in the US, but noted that Congress is "working on some things."
US Regulatory Paralysis Drives Crypto Industry Players to Europe, Warns Ripple Policy Head Susan Friedman
The lack of clear regulatory guidelines for the digital asset industry in the United States is causing key business opportunities and innovation to move to other nations with proper frameworks, such as European countries and the UAE. Susan Friedman, the Policy Head at Ripple blockchain, has warned that this migration of crypto industry players to Europe is impacting jobs and investment loss. The recently introduced MiCA regulations in Europe have created a clear set of rules for the industry, which is attracting talent and investment. The US risks losing a significant share of the industry's growth potential if it does not provide a comprehensive regulatory framework.
Crypto Daily News: Twitter Hacker Pleads Guilty, Coinbase Insider Trading Case, and Vietnam Crypto Kidnapping Trial
In today's crypto news, a UK national behind a Twitter hack pleaded guilty to charges in the US, including stealing cryptocurrency and cyberstalking victims. A former Coinbase product manager was sentenced to two years in prison for insider trading involving cryptocurrency. Binance launched a free service platform for VIP users to connect with crypto investment managers.
3 takeaways from the European Union's MiCA regulations
The European Union has recently passed the Markets in Crypto-Assets (MiCA) regulation, which aims to establish standard regulations and harmonized rules for the crypto industry and investors. However, some experts are concerned that MiCA's one-size-fits-all approach to regulation for decentralized finance (DeFi) may stifle innovation and increase compliance costs for smaller firms. Additionally, the regulation's requirement for crypto-asset service providers to gather and keep personal data raises privacy concerns and may subject users to privacy violations. It is important for authorities to strike a balance between privacy protection and innovation within the crypto industry.
European Union proposes Markets in Crypto Assets (MiCA) regulations to apply to crypto-related services within the EU.
The Markets in Crypto Assets (MiCA) regulation is set to become law in the European Union by July 2023, with some rules taking effect in 2024 and 2025. It applies to those engaged in the issuance, offer to the public, and trading of crypto-assets or related services. NFTs are not covered, but regulators may monitor large collections. MiCA imposes stricter rules on stablecoins, more disclosure obligations, and anti-money laundering and data security procedures.
Under MiCA, most crypto asset issuers only need to create a white paper and notify authorities in the EU country where they plan to do business. However, issuers of asset-referenced tokens (ARTs) must have their white papers approved and meet higher standards if they are "significant" in size. ART issuers must also have a registered EU office and match reserves to liabilities. The regulation includes market abuse rules and fines for incorrect information in white papers, but it may not prevent all industry blow-ups.
Top U.S. Regulator Says Europe's Landmark Crypto Regulation Could Serve as Model for U.S.
Hester Peirce, a commissioner at the Securities and Exchange Commission (SEC), has praised Europe's crypto regulation and suggested that it could serve as a model for the US. She specifically highlighted the speed at which the European Union put together its digital finance package, Markets in Crypto Assets (MiCA), which was passed by the European Parliament last month. Peirce also expressed her support for a regulatory model that allows for innovation while informing customers of the risks. She predicted that the rollout of MiCA could attract more businesses to Europe due to the clearer regulatory environment.
German Fintech Unstoppable Finance to Launch Europe’s First 'DeFi-Native Bank'
Berlin-based fintech startup Unstoppable Finance has announced plans to launch Europe's first compliant "DeFi-native bank" and a fiat-backed Euro-pegged stablecoin following the EU's new Markets in Crypto Assets (MiCA) bill. The DeFi banking arm will ensure that the stablecoin is fully backed by reserves, as outlined by the new legislation from Brussels.
Liechtenstein’s Blockchain Act: A Beacon for Crypto Businesses
Liechtenstein, located between Switzerland and Austria, has established itself as a leader in the blockchain and crypto industry. The country was one of the first to introduce specific legislation on crypto and blockchain, known as the Token and Trusted Technology Service Providers Act (TVTG) or the Liechtenstein Blockchain Act. This law, which became effective on 1 January 2020, provided regulatory certainty and attracted an upsurge in the number of crypto service providers.
