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 MiCA authorizations, which will allow crypto companies to operate across the 27-nation bloc, can be withdrawn if executives do not meet the grade.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.