LONDON: Cryptocurrency companies will need licenses and customer safeguards to issue and sell digital tokens The European Union Under new rules agreed by the bloc to tame a volatile “Wild West” market.
globally, crypto The assets are largely unregulated, with national operators in the EU only required to show controls to combat money laundering.
The European Parliament and representatives of EU states on Thursday struck a deal on their market in crypto-assets (MICA) law.
“Today we place orders in the Wild West of crypto assets and set clear rules for a harmonious market,” said centre-right lawmaker Stephen Berger, who led the talks on behalf of parliament.
“The recent drop in the value of digital currencies shows us how risky and speculative they are and that is fundamental to act,” Berger said.
The crypto markets have tumbled this year, under pressure from the collapse of the TeraUSD stablecoin and the major US crypto lender. Celsius Network Freezing withdrawals and transfers.
Bitcoin, the largest coin, is down nearly 70% since November’s record high of $69,000, bringing the overall market down.
protect consumers
EU states said the landmark regulation reaffirms the EU’s role as a standard-setter for digital issues.
“With the new regulations, crypto-asset service providers will have to respect stronger requirements for the security of consumers’ wallets and become liable in case investors lose their crypto-assets,” he added.
The deal would require formal rubberstamping by the European Parliament and EU states to become law, followed by an implementation period.
The new law gives crypto asset issuers and providers of related services a “passport” to serve customers in the EU from a single basis.
Holders of stablecoins – a type of crypto designed to hold a stable value – will be offered a claim free of charge at any time by the issuer, with all stablecoins supervised by the EBA, the blockchain’s banking watchdog.
Robert Kopitsch, Secretary General of the Blockchain for Europe lobby group, which includes major exchanges Binance And Crypto.com said the rules were “a mixed bag.”
“Thanks to the last-minute changes, we also fear that stablecoins will basically have no way of being profitable,” Kopits said.
AFME, a financial markets industry body, said the regulations would bring certainty, reduce fragmentation and ease the development of a strong and well-functioning market.
However, more clarity is needed to ensure that custodians of crypto assets are only on the hook in cases of negligence or misconduct, and not for incidents outside a custodian’s control, such as a nation state hack, AFME said. Told.
NFT settlement
Several states, including Ireland, Lithuania and Greece, have long opposed including non-fungible tokens (NFTs), which are digital assets representing objects from art to video.
But under pressure from EU lawmakers, agreement was reached on Thursday night that “NFTs will be kept out of this purview, except if they fall under existing crypto-asset categories”.
Brussels will assess within 18 months whether standalone regulations are required for NFTs.
National regulators will be responsible for licensing crypto firms, but they must keep EU securities watchdog ESMA informed of large operators.
ESMA will develop standards for crypto companies to disclose information on their environmental and climate footprint.
The two major crypto hubs, the United States and the UK, have yet to approve similar regulations.
The company behind the major USD coin stablecoin called the regulations “an important milestone”.
US firm Circle said in a blog, “While no comprehensive body of rules is perfect. It still provides a practical solution to issues that other jurisdictions are just beginning to grapple with.”
globally, crypto The assets are largely unregulated, with national operators in the EU only required to show controls to combat money laundering.
The European Parliament and representatives of EU states on Thursday struck a deal on their market in crypto-assets (MICA) law.
“Today we place orders in the Wild West of crypto assets and set clear rules for a harmonious market,” said centre-right lawmaker Stephen Berger, who led the talks on behalf of parliament.
“The recent drop in the value of digital currencies shows us how risky and speculative they are and that is fundamental to act,” Berger said.
The crypto markets have tumbled this year, under pressure from the collapse of the TeraUSD stablecoin and the major US crypto lender. Celsius Network Freezing withdrawals and transfers.
Bitcoin, the largest coin, is down nearly 70% since November’s record high of $69,000, bringing the overall market down.
protect consumers
EU states said the landmark regulation reaffirms the EU’s role as a standard-setter for digital issues.
“With the new regulations, crypto-asset service providers will have to respect stronger requirements for the security of consumers’ wallets and become liable in case investors lose their crypto-assets,” he added.
The deal would require formal rubberstamping by the European Parliament and EU states to become law, followed by an implementation period.
The new law gives crypto asset issuers and providers of related services a “passport” to serve customers in the EU from a single basis.
Holders of stablecoins – a type of crypto designed to hold a stable value – will be offered a claim free of charge at any time by the issuer, with all stablecoins supervised by the EBA, the blockchain’s banking watchdog.
Robert Kopitsch, Secretary General of the Blockchain for Europe lobby group, which includes major exchanges Binance And Crypto.com said the rules were “a mixed bag.”
“Thanks to the last-minute changes, we also fear that stablecoins will basically have no way of being profitable,” Kopits said.
AFME, a financial markets industry body, said the regulations would bring certainty, reduce fragmentation and ease the development of a strong and well-functioning market.
However, more clarity is needed to ensure that custodians of crypto assets are only on the hook in cases of negligence or misconduct, and not for incidents outside a custodian’s control, such as a nation state hack, AFME said. Told.
NFT settlement
Several states, including Ireland, Lithuania and Greece, have long opposed including non-fungible tokens (NFTs), which are digital assets representing objects from art to video.
But under pressure from EU lawmakers, agreement was reached on Thursday night that “NFTs will be kept out of this purview, except if they fall under existing crypto-asset categories”.
Brussels will assess within 18 months whether standalone regulations are required for NFTs.
National regulators will be responsible for licensing crypto firms, but they must keep EU securities watchdog ESMA informed of large operators.
ESMA will develop standards for crypto companies to disclose information on their environmental and climate footprint.
The two major crypto hubs, the United States and the UK, have yet to approve similar regulations.
The company behind the major USD coin stablecoin called the regulations “an important milestone”.
US firm Circle said in a blog, “While no comprehensive body of rules is perfect. It still provides a practical solution to issues that other jurisdictions are just beginning to grapple with.”