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

The French parliament has been making moves to regulate the cryptocurrency industry in the country, with a bill that will require cryptocurrency companies to register with regulators from January 2022. However, it seems that France is not stopping there in its efforts to regulate the industry, as a new amendment has been agreed upon to ban influencers from advertising cryptocurrency.

According to reports, the Economic Committee of the French National Assembly agreed to the amendment, which will ban influencer direct and indirect promotion of cryptocurrency without permission. This move is seen as part of the country’s strict regulation of the industry, despite being positive towards it.

It is worth noting that currently, there is not a single cryptocurrency company officially licensed by the French financial authorities, effectively banning influencers from promoting cryptocurrency altogether. The bill will go into effect after getting the consent of the Senate and the House of Representatives.

The bill requiring cryptocurrency companies to register with regulators from January next year was passed earlier this year, with 109 votes in favor and 71 against. The registration process will include proof of compliance with governance and anti-money laundering regulations.

The main objective of the bill is to force French cryptocurrency companies to acquire cryptocurrency operator licenses until the announcement of MiCA, a cryptocurrency regulation that covers the entire European Union, by the end of 2024.

French senator Herve Maury, who is part of the French Finance Committee, explained the purpose of the bill, stating that “French cryptocurrency companies have to obtain licenses before October of this year, but no one has done so.” This means that local cryptocurrency companies that are not registered with the French Financial Markets Authority (AMF) will have to obtain a license from 2024.

As the regulation of the cryptocurrency industry becomes more important around the world, it is likely that more countries will follow in France’s footsteps in making strict laws for related regulations.

#French #MiCA #crypto2023 #BTC #azcoinnews

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

Europe, you’d better be on your toes. The European Securities and Markets Authority (ESMA) isn’t playing games when it comes to digital currency oversight.

With the vast digital frontier of cryptocurrency expanding every day, the oversight bodies are throwing down the gauntlet and demanding action. And let’s be clear; it’s about time.

The Gritty Details of MiCA

The Markets in Cryptoassets (MiCA) regime is no ordinary set of rules that companies can brush aside or decide to take a look at when they’ve got some spare time.

Approved earlier this year, this comprehensive package dictates the operations of digital finance within Europe. Crypto providers aiming to offer services across the continent will have to dance to MiCA’s tune by registering with a local regulator in at least one of the EU member states.

But here’s the kicker: while MiCA will officially be in action by January 2025, national authorities have this sly little “grandfathering clause” up their sleeves.

With this clause, firms that get their registrations done and dusted before 2025 can coast along under an 18-month transitional period, effectively pushing the deadline to mid-2026. Sounds like a sweet deal? Think again.

Playing by the Rules, or Playing the System?

ESMA suspects that a hefty chunk of crypto companies currently serving the ever-eager European clientele might be eyeing that grandfathering clause.

And among them? Some hefty players who, thanks to their massive size, can flit between borders, leveraging the varied regulations across nations to their benefit.

Cunning, right? But ESMA isn’t having any of it. In a not-so-subtle nudge, the authority has warned consumers that they’re on their own when it comes to the protection of crypto services. At least until MiCA enters the chat.

But ESMA isn’t just wagging its finger at companies; it’s telling national regulators to pull up their socks.

They’re pressing these bodies to pour adequate resources into the MiCA transition and get their act together, formulating a process for crypto company authorization pronto.

And for the love of all things fair, ESMA wants to ensure that no country offers a “lite” version of this authorization, just so they can get a leg up over other jurisdictions.

A Uniform Front for a Global Phenomenon

Now, while the Paris-based ESMA is hard at work churning out the technical specifics under MiCA, they’re expecting national authorities to put on their big kid pants.

Each country will have to take these standards and enforce them on firms registering within their boundaries. But there’s a catch.

International entities like the Financial Stability Board and the International Organization of Securities Commissions are sounding the alarms on potential pitfalls. If even one regulator slips up in applying MiCA uniformly, it could create juicy loopholes for the crafty players in the crypto world.

Europe is at a crucial juncture. With the cryptocurrency realm being a vast, global arena, a single misstep in regulatory application can have far-reaching consequences.

There’s no room for slack, no space for the faint-hearted. It’s high time authorities across the continent recognized the magnitude of their responsibility.

So, to every crypto company and regulator out there: the clock’s ticking, the stage is set, and the world’s eyes are on Europe. Don’t mess it up.

YEREVAN (CoinChapter.com) — Ripple strategically chose Ireland as its European Union (EU) base. This move coincides with the impending rollout of the EU’s Markets in Crypto-Assets (MiCA) regulation. MiCA aims to establish a comprehensive regulatory framework for digital assets within the EU, addressing issues like consumer protection, market integrity, and financial stability.

Ripple Sets Up Camp in Ireland

Ripple’s registration with the Central Bank of Ireland as a virtual asset service provider is a significant step. It positions the company to seamlessly navigate the evolving regulatory landscape and extend its services across the EU’s vast market.

The approach underlines Ripple’s commitment to compliance, pointing out its readiness to adapt to the global shifts in digital asset regulation. MiCA, set to “revolutionize” the crypto regulatory environment in the EU, aims to standardize rules for crypto assets and service providers. It seeks to create a harmonized market for crypto assets, enhancing transparency and security for investors and users.

The regulation will address key issues like anti-money laundering, operational resilience, and investor protection. Thus, it could foster a safer and more reliable digital asset market in the EU. Ripple’s decision to establish its EU base in Ireland reflects the country’s growing appeal as a tech-friendly hub with favorable corporate conditions.

This move is particularly significant considering Ripple’s legal challenges in the United States. By securing a base in Ireland, Ripple not only gains access to the EU’s large market but also demonstrates its dedication to adapting and thriving within the regulated space of digital assets.

Europe Crypto Regulations About to Clear

In Ireland, the Central Bank is responsible for issuing regulations related to cryptocurrency and other financial services. Cryptocurrencies like Bitcoin, Litecoin, and Ether are considered unregulated. According to the regulators, they are not centrally issued and do not grant rights or entitlements to holders. Thus, they don’t fall under the category of “transferable securities” under existing regulations.

However, if a cryptocurrency provides rights or entitlements similar to shares or bonds, it could fall under existing financial regulations​​. Recent EU regulations, which are also applicable in Ireland, require increased traceability of crypto asset transfers.

The new regulation (EU 2023/1113) will be effective from December 30, 2024. Under the new rules, crypto asset service providers must ensure transfers of crypto assets are accompanied by information about the originator and beneficiary of the transfer. This enhances the existing anti-money laundering (AML) framework​​.

MiCA categorizes crypto-assets into three main types. There are asset-referenced tokens (ARTs), electronic money tokens (EMTs), and other crypto-assets not covered by existing EU legislation, including utility tokens. MiCA does not apply to crypto-assets that are unique and not fungible with other crypto-assets, like non-fungible tokens (NFTs).

The regulation prescribes uniform requirements for the offering and admitting to trading of these crypto-assets. It also includes requirements for crypto-asset service providers (CASPs).

The post Ripple Sets Camp in Ireland, Under MiCA Rule appeared first on CoinChapter.

Coinspeaker ESMA Warns National Regulators Ahead of MiCA

The European Securities and Markets Authority (ESMA) is wary of global crypto firms who might try to exploit loopholes currently present in its Markets in Crypto Assets regulation (MiCA).

MiCA, whose rules are set to take effect by December 2024, would allow companies that have been registered under an existing regime to continue doing their business up until July 2026. That is even without a full MiCA license.

Per ESMA, however, this grace period opens up a window of opportunity for “complex and opaque” foreign companies to try to operate from overseas via EU-based branches.

Admitting that some companies have a history of noncompliance, ESMA says that being large and having a very wide geographic reach may still help them operate without boundaries. According to the regulator, this unfortunate reality increases “the risk of conflicts of interest, regulatory arbitrage, and an unlevel playing field.”

The regulator also believes that the temporary provision may hurt the same investors it seeks to protect. It wrote in a statement:

“Opaque group structures may also render it difficult for clients of service providers to know which entity they are dealing with and its regulatory status.”

ESMA Says National Regulators Must Not Undermine MiCA

Though the anticipation for MiCA has gone into full throttle, ESMA has warned national regulators against allowing what it calls ‘letterbox’ entities. It reminded them of their responsibility to implement the MiCA rule in a way that will not allow foreign providers to operate in the bloc without having real staff or substantial operations there.

Conceptually, MiCA places all crypto firms within the EU bloc under the same rules. This implies that it allows the firms to operate with a single license. However, it also places some responsibilities such as transitioning and exceptions on national regulators. With this kind of authority, however, many enthusiasts have repeatedly raised concerns that some countries may seek to undermine the aims of MiCA. That is as they each strive to score a competitive point.

ESMA has now called on all national authorities under its jurisdiction to immediately “establish authorization procedures and foster dialogue with potential applicants.”  For what it’s worth, the urgency appears to suggest that there will be some kind of informal pre-screening process. That is even before companies make formal license applications.

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ESMA Warns National Regulators Ahead of MiCA

A report noted that the European Markets watchdog advised crypto firms to prepare for upcoming regulations.

The authority urged digital assets companies to seek MiCA authorization from national regulators.

The implementation of the regulation is scheduled for January 2025.

On October 17, Bloomberg reported that the European Securities and Markets Authority has urged crypto firms and national regulators to be prepared for the new European Union’s new industry regulations instead of depending on an extended transitional period.

Moreover, the Authority emphasized the importance for digital asset companies to promptly seek authorization from national regulatory authorities within the framework of the European Union’s forthcoming Markets in Cryptoassets (MiCA) regulations while encouraging discussions around how the upcoming rules will potentially affect the firms’ existing operations.

A press release from May noted that MiCA is set to bring about a significant transformation in the crypto industry. Endorsed by EU lawmakers, earlier this year, MiCA stated that crypto service providers, intending to operate within the EU, must undergo registration with a regulatory authority in at least one member state. The implementation of the regulation is scheduled for January 2025.

This provision enables companies that have registered before the specified date to continue their operations during an 18-month transition period, effectively extending the implementation until the middle of 2026. Bloomberg further highlighted that the regulatory authority stated that it is “probable that a significant number” of crypto firms already catering to EU clients will attempt to utilize this provision. This includes certain providers that leverage their significant scale to operate across borders and exploit regulatory variances between more accommodating jurisdictions.

MiCA’s regulations are already having a substantial impact on the leading crypto exchange, Binance. In September, a report unveiled that a Binance executive had issued a warning regarding the possible removal of stablecoins from the European market, in accordance with MiCA. In the report, Marina Parthuisot, Head of Legal at Binance France, was quoted as saying that no stablecoin project has yet received approval under MiCA.

Marina Parthuisot, Binance’s French legal director, said that since the MiCA bill that will take effect in June 2024 has not yet approved any stablecoins, Binance plans to delist all stablecoins in Europe on June 30, 2024. CoinDesk https://t.co/PDEKnZegE9

— Wu Blockchain (@WuBlockchain) September 21, 2023

Despite the EU’s efforts and the introduction of MiCA, the union failed to position itself within the top 20 in the 2023 Global Crypto Adoption Index. The index, released by crypto intelligence firm Chainalysis, revealed that Central and South Asia claimed the highest spot in terms of crypto adoption.

The post European Market Watchdog Advises Crypto Firms To Prepare For Rules appeared first on Coin Edition.

In a bid to accommodate the rapidly evolving landscape of cryptocurrency, prominent fintech companies such as Revolut and PayPal are advocating for an extended transition period to adhere to the forthcoming Crypto Asset Markets Regulation (MiCA) in the European Union. MiCA, slated to take effect in December 2024, aims to establish standardized licensing and regulatory standards for crypto companies across Europe, bolstered by stricter anti-money laundering (AML) requirements.&middot

For the full story, head over to TheCurrencyAnalytics.com.

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?

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.

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

Crypto firms in the United States are continuously struggling due to a lack of regulatory certainty, and a well-defined crypto framework has yet to materialize. Consequently, new crypto firms are choosing to relocate from the United States to countries where a proper framework for crypto-related businesses is assured.

Crypto entities surge in the European Union

Considering these uncertainties, the European Union (EU) has recently witnessed a significant surge in its crypto landscape, marked by the registration of almost 1,000 new virtual asset services providers (VASPs) across the 27-member bloc. According to data from DL News, the total number of registered crypto entities in the European Union has now reached an impressive 11,597. However, this substantial increase in crypto-related business will not only attract crypto entrepreneurs but also intensify competition among them.

The influx of registrations of crypto entities in the EU could also occur in the US if they establish well-defined crypto frameworks. However, the implementation of the EU’s Markets in Crypto-Assets law (MiCA) is scheduled for December 2024. MiCA is called the EU’s first comprehensive regulation for crypto assets and is expected to bring about a transformative shift in the crypto ecosystem.

Also Read: SEC actions bring regulatory uncertainty to US Crypto industry

Impact of EU’s markets in Crypto-assets law (MiCA)

MiCA aims to set new standards across the EU, introducing regulations that will govern firms offering crypto services to the bloc’s population of 450 million. One of its key features is the introduction of passporting rules, allowing compliant firms to operate seamlessly across member states. This move is expected to reshape the competitive landscape, with countries vying to attract crypto entrepreneurs seeking to leverage MiCA’s regulatory framework.

Out of the 11,597 VASPs, Czechia leads in EU crypto registrations with over 9,000 VASPs registered. It’s important to note that a significant portion of these registrations may be attributed to individuals rather than companies, potentially influencing the results. Following closely is Poland, with 1,067 crypto service providers, and experiencing a notable uptick in registrations in the last quarter of 2023.

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According to CoinDesk, European Union (EU) regulators have proposed bank-style rules for crypto company shareholders and executives. The proposals are part of the EU's landmark new crypto law, the Markets in Crypto Assets regulation (MiCA), set to take effect in December 2024. The rules cover curbs on ownership, governance, and bonuses for crypto companies and their staff. Shareholders with more than a 10% stake in a crypto company will be vetted for previous convictions or sanctions.

The new MiCA laws require prospective crypto license holders to show that owners and executives have a good reputation. MiCA authorizations, which will allow crypto companies to operate across the 27-nation bloc, can be withdrawn if executives do not meet the grade. The consultation is open for comment until January. Shareholders and board members of crypto asset service providers must not have been convicted of offenses relating to money laundering, terrorist financing, or any other offenses that would affect their good repute, according to the EU rulemaking agencies responsible for banking and securities markets law, the EBA and ESMA.

Under the planned measures, companies issuing stablecoins, a type of cryptocurrency tied to the value of other assets such as fiat, would also face limits on staff bonuses. Regulators aim to imitate controversial banking-sector measures designed to curb excessive risk-taking.

The post European Banking Authority Proposes Strict Regulations for Stablecoin Issuers under MiCA appeared first on Coinpedia Fintech News

The European Banking Authority (EBA), in alignment with the European Union’s Markets in Crypto Assets (MiCA) policy, has unveiled draft regulations concerning capital and liquidity requirements for stablecoin issuers. These pivotal regulations aim to monitor and govern stablecoin activities within the European Union.

Key Regulations Set Out by EBA

The MiCA framework restricts the circulation of stablecoins denominated in foreign currencies within the EU and enforces rigorous reserve requirements for stablecoin issuers. One of the main goals of this groundbreaking policy is to ensure the stability and integrity of the digital asset market.

Stakeholders in the crypto space are urged to prepare for the forthcoming implementation of MiCA regulations scheduled for December 2024.

EBA’s Third Batch of Policy Products under MiCA

The European Banking Authority released its third set of policy proposals under MiCA, including various crucial criteria:

Capital and liquidity requirements for stablecoin reserve assets.

Regular liquidity requirements for stablecoin issuers.

The EBA emphasizes the importance of recovery planning for issuers of ARTs (Asset-Referenced Tokens) and EMTs (E-Money Tokens). They must prepare in advance for adverse scenarios that could impact their ability to comply with regulatory requirements related to asset reserves.

Supervision of “Significant” Stablecoins

EBA’s recent publications indicate their intention to regulate stablecoin issuers with bank asset reserves further. According to EBA, stablecoins classified as “significant” will fall under their supervision and must maintain funds equivalent to 3% of their reserves instead of the standard 2%.

The consultation package also outlines conditions for designating ARTs and EMTs as “widely used” within a member state. These criteria are crucial for identifying the most relevant custodians of asset reserves, trading platforms, payment service providers, and crypto-assets service providers. These entities will play a significant role in the MiCA framework’s regulatory landscape.

Consultation Period and Public Hearing

EBA’s proposals are open for consultation until February 8, 2024, and a public hearing is scheduled for January 30. These steps aim to gather input and feedback from stakeholders before the regulations are finalized.

These regulations under MiCA reflect the European Union’s commitment to ensuring the stability and integrity of the cryptocurrency and stablecoin markets, with a strong focus on investor protection and financial stability.

Coinspeaker Fidelity to Expand Presence in Europe after MiCA Implementation

Fidelity Investments, one of the leading asset management companies in the United States, plans to establish its presence in Europe through its crypto subsidiary Fidelity Digital Assets. 

The unit, launched in November 2018 to offer Wall Street investors the opportunity to buy and sell cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), as well as over-the-counter (OTC) services, currently only caters to customers in the US.

However, the company’s Vice President, Manuel Nordeste, recently stated at the European Blockchain Convention in Barcelona that it is actively exploring opportunities to enable its entry into the EU after the region’s landmark crypto rule becomes effective later in 2024.

“We do have plans to access the EU after MiCA comes into force, and we’re actively exploring the best setup for us to do so,” Nordeste said in an interview.

Fidelity to Explore the Market in Europe for Its Crypto Business

Another top executive at the company confirmed the expansion plans to DL News on October 25, stating that Fidelity Digital Assets is evaluating its moves on how to expand its presence in the EU market post-MiCA implementation.

The company’s interest in European market expansion aligns with its long-term commitment to providing institutional investors with secure and compliant access to cryptocurrencies.

Over the years, Fidelity Investments, managing a whopping $$4.5 trillion in assets, has demonstrated its dedication to the digital asset space through initiatives such as Bitcoin mining and the development of crypto-focused financial products.

The company’s strategic move to explore the EU market coincides with the European Union’s preparations for the implementation of the Markets in Crypto-Assets Regulation (MiCA), a comprehensive framework set to standardize regulations for cryptocurrencies across the EU.

A Gateway to Explore the Crypto Industry

The forthcoming MiCA regulation aims to introduce a uniform set of rules and guidelines for crypto assets that currently operate outside the scope of traditional financial regulations. With a focus on enhancing transparency, investor protection, and market stability, MiCA is expected to provide a secure and regulated environment for investors interested in the crypto space.

In April, the European Parliament approved the bill, making it the first region to adopt a comprehensive regulatory framework for digital assets, with the rule expected to pass next year.

The company’s chief, Nordeste, believes that the introduction of this law will make service providers accountable and offer investors a gateway to explore the crypto industry.

“We certainly see MiCA as a positive development in providing a framework for what institutions and service providers should be doing to remain accountable and to give investors an access point to the asset class in a well-regulated way,” Nordeste said.

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Fidelity to Expand Presence in Europe after MiCA Implementation

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.