EU releases new guidance on crypto classification under MiCA! 🚀

- On July 12, three European supervisory agencies (EBA, EIOPA, ESMA) launched a consultation document to standardize digital asset classification.

- This guide helps determine whether a token belongs to MiCA or not through questions such as: who is the issuer, whether the token is based on blockchain, and whether it is a financial instrument.

- Tokens can be classified as standard crypto, e-money token (EMT) or asset-referenced token (ART).

- ART issuer must have a legal opinion in the white paper, confirming that the token is not EMT or another cryptocurrency outside the scope of MiCA.

- Assets that are not part of ART or EMT need to clearly explain their classification in the white paper.

Compliance MiCA EU

- Stakeholders are invited to submit comments on the consultation document before mid-October, with an online meeting on September 23.

- Patrick Hansen from Circle called this guide "very useful" and found that many people misclassify tokens under MiCA.

- Circle is one of the first stablecoin issuers to comply with MiCA, with USDC and EURC already complying with the new regulation.

- MiCA's first set of regulations takes effect from June 30, targeting stablecoins and stablecoin issuers. The next set of regulations is expected to take effect in December 2024.

What do you think about these new regulations? Comment below! 👇