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The EU’s financial regulator has reiterated that cryptocurrencies are risky, despite the bloc’s recent #MiCA proposals.
The EU financial regulator has warned that cryptocurrencies are still risky, even after the bloc issued its first set of MiCA proposals. The regulator said that investors should be aware of the risks before investing in cryptocurrencies.
ESMA published a consultation paper on July 12. The paper discusses technical standards for the Markets in #Crypto-Assets (MiCA) regulation.
ESMA is asking for feedback from all stakeholders on how to regulate crypto assets. They are also asking for confidential information from crypto firms, such as their expected revenue, number of white papers, and how they use on-chain and off-chain trading.
Applicants must prove that they will not mix client funds with crypto assets, and that they will not use the assets for their own company. They must also provide information about the security of their ICT system and the underlying distributed ledger technology.
Participants must submit their responses by September 20th:
The regulator will hold a second round of consultation in October to discuss sustainability and record-keeping. The third round will take place in early 2024 and will focus on how foreign companies can serve #EU consumers.
The new MiCA proposals require crypto service providers to handle customer complaints in a specific way. They also lay down conflict-of-interest rules for the virtual assets industry.
EBA urges stablecoin issuers to prepare for MiCA:
MiCA was approved by the European Parliament in April and the EU Council in May. It will come into force in 2024 and will be fully implemented by 2025.
The law will allow crypto exchanges and wallet providers to operate in all 27 EU countries with a single license.
The European Banking Authority (EBA) issued a press release on July 12th.
The EBA urged #stablecoin issuers to start preparing for MiCA now, so they won’t have to rush to comply with the guidelines when they’re implemented.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
