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 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

Ripple Registers as Virtual Asset Service Provider in Ireland Ahead of MiCa

Ripple, the enterprise blockchain development firm, has registered with the Central Bank of Ireland as a virtual asset service provider (VASP), choosing Ireland as its strategic foothold to access the European Union market.

Ripple's decision aligns with the upcoming Markets in Crypto-Assets (MiCA) regulation, which will go live by the end of next year. MiCA will establish a harmonized regulatory framework for crypto firms operating within the EU's 450 million population.

By registering in Ireland, Ripple can passport its license to other EU member states, enabling it to operate across the bloc. This move follows Coinbase's decision to establish its EU headquarters in Dublin and seek a MiCA license.

Eric van Miltenburg, Ripple's senior vice president for strategic initiatives, said:

“Ireland has positioned itself as a supportive jurisdiction for the virtual assets industry and consequently as a great place for businesses like Ripple’s to operate, reinforcing our decision to select Ireland as our primary base for EU regulation.”

However, Ripple continues to face legal challenges in the United States, where it is embroiled in a lawsuit with the Securities and Exchange Commission (SEC) since 2020. The SEC alleges that Ripple conducted an unregistered securities offering with its XRP token. Despite a partial win for Ripple in October against the SEC, the outcome of the case remains uncertain and could have significant implications for the crypto industry.

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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 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

In a move signaling a proactive stance towards the fast-evolving digital currency realm, Spain has decided to fast-track the adoption of the world’s premier crypto-asset market regulation, MiCA (Markets in Crypto-assets Regulation).

A Proactive Leap into the Future

In a recent development, Spain has chosen to lead the global charge in digital currency regulations by implementing the MiCA regulation six months ahead of schedule. Originally penned for a July 2026 rollout across European member states, Spain is set to welcome this framework by December 2025.

Stakeholder Engagements

Nadia Calviño, Spain’s First Vice-President and interim Minister for the Economy and Digital Transformation, recently engaged in a pivotal discussion with Verena Ross, the President of the European Securities and Markets Authority (ESMA). Their discourse revolved around the broader financial ecosystem and the nuances of crypto-asset market regulation.

Rollout Dynamics

Following the public disclosure of this regulation, each European member state will be tasked with deciding the timeline for its application. Default provisions dictate an implementation from July 2026 for crypto service providers, coupled with a gradual transition spread across 36 months.

However, Spain’s swift decision-making promises a mere 18-month transition, post the regulation’s June reveal. This also entails ESMA and the European Banking Authority (EBA) laying down technical standards for MiCA’s practical application. This is followed by an additional year earmarked for the National Securities Market Commission (CNMV) to initiate approvals for aspiring crypto service enterprises. Spain’s approach trims the entire process by half a year.

This advancement, which resonates with ESMA’s recommendation, facilitates the early initiation of MiCA in Spain. This proactive move promises to bring clarity and augmented protection for Spanish digital asset investors.

Unraveling MiCA’s Essence

MiCA stands as the pioneering global framework addressing the crypto-asset market comprehensively. It delineates responsibilities for crypto-asset service providers as well as issuers.

However, certain crypto-assets currently governed by existing legislation, unique NFTs, and those that are decentralized like Bitcoin, remain outside MiCA’s purview. Although, their trade on a platform does fall under MiCA. The regulation also notably sidesteps topics concerning decentralized finance (DeFi).

Crypto-asset issuers are mandated to be licensed entities, present a comprehensive white paper, and adhere to stringent prudential, governance, and investor protection protocols. A pivotal addition is the inception of rules aimed at curtailing the liquidity risks linked with crypto-assets.

For those issuing crypto-assets with inherent price stabilization mechanisms, the MiCA directives will come into play from 30 June 2024.

Service providers in the crypto space, spanning custody, exchange platforms, and consultation, will observe regulations mirroring those for MiFID investment service enterprises. These entities will seek approval from the CNMV for operation.

Importantly, Spain has appointed CNMV alongside the Bank of Spain as the primary authorities to usher in MiCA, as documented in the Securities Markets and Investment Services Law of March 2023.

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.

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 $

A version of this story appeared in our The Guidance newsletter. Sign up here.

Happy New Year! Inbar here.

Europe blazed ahead with crypto regulation in 2023 — and there’s more coming.

Here’s what to look out for in 2024.

Regulators tie up loose ends, MiCA comes into force, DeFi report to come

In 2024, the EU’s financial watchdogs will publish their final set of consultations to fill in the remaining details of the Markets in Crypto Assets regulation before it goes live.

January/February: The European Securities Markets Authority will publish a consultation on investor protection and market abuse.

February: The European Banking Authority will publish a consultation on redemption plans.

June: Joint consultation on classification of crypto assets.

This first phase of MiCA will kick in from June, when rules addressing stablecoin issuers go live.

Stablecoin issuers will have new prudential, liquidity, and disclosure requirements. They must also publish a whitepaper for each crypto asset available for trade on exchanges.

The second phase of implementation follows six months later, and deals with the licensing of crypto asset service providers.

That means firms must comply with rules on capital requirements, internal controls, and governance — unless their home countries choose to extend the transitional period to mid-2026.

The Transfer of Funds Regulation, aimed at tackling anti-money laundering, will be enforced at the same time.

June 30: MiCA’s stablecoin rules go live.

December 30: MiCA and TFR rules go live

MiCA doesn’t include rules for DeFi, but the regulation compels the European Commission to publish a report assessing DeFi markets. That could be followed by a legislative proposal.

The report is due 18 months after MiCA came into force in June, so we can expect a report by the end of 2024.

December: The estimated publication date for the EU Commission DeFi report.

Blockchain infrastructure push

With a push from the Belgian digital minister, the European Commission is due to launch a new political body — the European Digital Infrastructure Consortium.

The consortium will roll out a European Union-wide blockchain to revamp public infrastructure.

January 1: Belgium takes six-month presidency of the Council of the EU.

February: The estimated launch date of the consortium.

AML rules for DeFi

EU lawmakers weren’t able to finish negotiating a bill on anti-money laundering in 2023. So now we look to 2024.

The bill covers decentralised autonomous organisations, non-fungible token platforms, and decentralised finance platforms. There are also restrictions on self-hosted wallets.

Negotiations are set to begin again, and could wrap up in January.

January 17: The — possibly final — trilogue negotiation takes place.

April: The estimated date when the European Parliament may conduct a plenary vote on the regulation.

Digital finance rules

Lawmakers in the European Parliament are working through several digital finance bills.

These bills set controls on how customers and companies handle financial data, and draft rules for payment services.

Stablecoin issuers and some crypto asset service providers are included. Legislation on the controversial digital euro is also still on the table.

The Economic and Monetary Affairs Committee is due to vote on:

January 29: The third Payments Services Directive and Regulation.

March 21: Regulation for Financial Data Access.

DORA

The Digital Operational Resilience Act comes into effect after MiCA goes live at the end of 2024.

DORA will force crypto service providers to regularly report to regulators, and prove they can manage technology risks.

January 17, 2025: DORA applies.

Email the author at inbar@dlnews.com.