Francesco Piras’ Post

European Securities and Markets Authority (ESMA) has released its third consultation package and finalised the first set of rules for crypto-asset service providers under the Markets in Crypto-Assets Regulation #MiCA. Dive deeper into the details: In the consultation package, ESMA is seeking input by 25 June on proposed rules and guidelines covering various aspects such as detection and reporting of suspected market abuse in crypto-assets, policies and procedures for crypto-asset transfer services, suitability requirements for certain crypto-asset services, and ICT operational resilience for specific entities under MiCA. The Final Report includes detailed proposals on information required for the authorisation of crypto-asset service providers (CASPs), information needed when financial entities notify their intent to provide crypto-asset services, requirements for assessing the intended acquisition of a qualifying holding in a CASP, and how CASPs should address complaints. 👉 Subscribe to our bi-weekly newsletter to receive exclusive insights, news, and updates about the world of cryptocurrency and blockchain. Link in the comments! 👉 Explore the consultation package here and read the Final Report for comprehensive details via the links in the comments. #crypto #regulation #blockchain #fintech #compliance

The European Securities and Markets Authority (ESMA) has published the first final report of the Draft Technical Standards specifying certain requirements of the Markets in Crypto Assets Regulation (“MiCA”). The drafted technical standards follow the receipt of feedback as part of the consultation process, and includes proposals on: ➡️ Information required for the authorisation of CASPs; ➡️ The information required where financial entities notify their intent to provide crypto-asset services; ➡️ Information required for the assessment of intended acquisition of a qualifying holding in a CASP;  ➡️ How CASPs should handle complaints. The Final Report has been submitted to the European Commission, and if requested by the European Commission, the ESMA will provide further advice and technical guidance in this area. As regulatory regimes tailored to the unique landscape of cryptocurrency develop around the world, Plenitude’s Digital Assets Practice can help you understand their implications for your project and design a compliance framework that meets applicable requirements. Visit our website for more information: https://lnkd.in/enrCKdyB 🔗 Learn more: https://lnkd.in/eDtzZNRw

🌐 CFTC's GMAC Advances Tokenized Non-Cash Collateral Recommendation The CFTC's Global Markets Advisory Committee (GMAC) has made a groundbreaking recommendation to leverage distributed ledger technology (DLT) for expanding the use of non-cash collateral in derivatives markets. Key Highlights: - Global Success Stories: Commissioner Pham highlighted proven global use cases for asset tokenization, including $1.5 trillion in institutional repo and payments on blockchain platforms and digital government bond issuances.  - Benefits for U.S. Markets: The recommendation aims to improve operational infrastructure for non-cash collateral, enhancing market efficiency while maintaining existing protections.  - Regulatory Progress: This marks the 14th GMAC recommendation in the past year and a significant step toward clarity in U.S. digital asset regulations. Additionally, the GMAC’s Utility Tokens workstream continues progress on regulatory solutions to foster innovation and growth in the digital economy. This move underscores the commitment to embracing new technology while safeguarding market integrity. #CFTC #DigitalAssets #Blockchain #Innovation #MarketIntegrity #Tokenization

Tokenized money market funds (TMFs) are digital versions of traditional money market funds (MMFs) that leverage blockchain technology to provide added benefits such as 24/7 trading, fractional ownership, faster transactions, and increased transparency. These funds represent low-risk, cash-like investments, typically tied to government bonds or other secure assets, but they now exist as tokens on a blockchain, enabling more seamless and efficient trading. One of the key advantages of TMFs is accessibility, as they allow even small investors to buy fractional shares. Transactions are faster and cheaper, thanks to blockchain's decentralized nature, which removes the need for traditional intermediaries. Investors also benefit from greater liquidity and security, as blockchain records are permanent and verifiable, limiting risks like fraud. Despite the potential, regulatory challenges remain. TMFs are often considered securities, meaning that listing them on decentralized exchanges (DEXs) could be difficult due to regulatory hurdles. Permissioned exchanges or over-the-counter (OTC) markets may play a key role in facilitating TMF transactions in the near future, particularly in regions like Singapore or Hong Kong, where some exchanges are already working with regulators. Overall, the rise of tokenized money market funds could transform traditional asset management by making these funds more accessible, efficient, and attractive to a broader range of investors. #tokenize #crypto #cryptocommunity

📢 Exciting News for the Crypto Industry! 📢 We are thrilled to share a significant development in the regulatory landscape for digital assets. The recently introduced Digital Asset Market Structure Bill, H.R. 4763, marks a crucial step forward in providing much-needed clarity and support for the cryptocurrency industry. This bipartisan effort aims to establish a comprehensive framework that will foster innovation, protect consumers, and promote the growth of the digital asset market in the United States. Key highlights of the bill include: - Clear guidelines for the classification of digital assets. - Robust consumer protection measures. - Provisions to combat illicit activities. - Support for blockchain technology and its applications. We will be closely monitoring the progress of H.R. 4763 and are committed to keeping our clients and partners informed about any updates. Stay tuned for more insights and analysis on how this bill may impact your ventures in the crypto space. https://lnkd.in/dYSMpAY9 #CryptoRegulation #Blockchain #DigitalAssets #Web3 #FiOLegal #Innovation #LegalUpdates

The "Decentralized Finance" report from the Subcommittee on Digital Assets and Blockchain Technology of the U.S. Commodity Futures Trading Commission provides a comprehensive framework for understanding and regulating DeFi (Decentralized Finance). It outlines DeFi's potential for enhancing financial transparency, efficiency, and access, while also highlighting significant risks such as fraud, regulatory violations, and market volatility. The report emphasizes the importance of government and industry collaboration to foster responsible development within DeFi, ensuring consumer protection, market integrity, and financial stability. Key recommendations include improving regulatory understanding, defining policy objectives, and enhancing compliance and security measures within DeFi projects. • #DeFiEcosystemGrowth: Expanding financial services through blockchain. • #RegulatoryChallenges: Balancing innovation with consumer protection. • #SmartContractSecurity: Ensuring robust, audited protocols. • #Interoperability: Facilitating cross-chain transactions. • #MarketStability: Addressing volatility and systemic risks. • #ConsumerEducation: Enhancing understanding of DeFi risks and rewards.

The "Decentralized Finance" report from the Subcommittee on Digital Assets and Blockchain Technology of the U.S. Commodity Futures Trading Commission provides a comprehensive framework for understanding and regulating DeFi (Decentralized Finance). It outlines DeFi's potential for enhancing financial transparency, efficiency, and access, while also highlighting significant risks such as fraud, regulatory violations, and market volatility. The report emphasizes the importance of government and industry collaboration to foster responsible development within DeFi, ensuring consumer protection, market integrity, and financial stability. Key recommendations include improving regulatory understanding, defining policy objectives, and enhancing compliance and security measures within DeFi projects. • #DeFiEcosystemGrowth: Expanding financial services through blockchain. • #RegulatoryChallenges: Balancing innovation with consumer protection. • #SmartContractSecurity: Ensuring robust, audited protocols. • #Interoperability: Facilitating cross-chain transactions. • #MarketStability: Addressing volatility and systemic risks. • #ConsumerEducation: Enhancing understanding of DeFi risks and rewards.

We look forward to hosting a roundtable on “Lessons Learned from Issuing a Blockchain-based Digital Bond under the eWpG Law, without using a CSD – How can Issuers also Apply this Approach?” at the FSBC Forum in Frankfurt on 📆 November 14 together with KfW, Union Investment and Linklaters Germany! The FSBC Forum is an exclusive, one-day event hosted by the Frankfurt School Blockchain Center. The forum brings together industry experts, leaders, and participants to engage in panel discussions, workshops, and roundtables on key topics shaping the future of #digitalassets, #tokenization, and #blockchain technology. Our joint workshop will explore key insights gained from issuing a #DLT bond on a blockchain under the #eWpG law, without involving a Central Securities Depository (CSD). Through a series of short presentations followed by a Q&A session, participants will engage in open discussions guided by key questions. The roundtable is designed for financial institutions, issuers, legal professionals, and tech providers interested in blockchain-based securities and digital bond issuance. Register via the link in the comments 👇 We are looking forward to seeing you 🤗

On October 2, 2024, the European Securities and Markets Authority (ESMA) published important guidance regarding the status of Crypto-Asset Service Providers (CASPs) operating under the transitional regime defined by MiCA. Key Takeaways: ▶️ Transitional Period Defined: CASPs that were providing services in compliance with applicable laws before December 30, 2024, can continue their operations until the end of the transitional period, which lasts until July 1, 2026, or until they receive authorization. ▶️ Non-Authorization Under MiCA: During this transitional phase, CASPs are not recognized as “crypto-asset service providers” as defined by Article 3(1)(15) of MiCA. This means they are not subject to MiCA requirements until they are formally authorized. ▶️ Inter-Entity Compliance: Authorized CASPs may rely on entities operating under the transitional regime to meet compliance requirements. This relationship facilitates continued service provision between authorized providers and those still transitioning. ▶️ Obligations Remain: It's important to note that entities under the transitional regime must still fulfill their obligations under Regulation (EU) 2023/1113, despite not being classified under MiCA until authorization. ▶️ Reference to Prior Guidance: The Q&A also refers to a previous clarification regarding the provision of cross-border services during this transitional period, highlighting the need for compliance in cross-border operations. You can read the full ESMA Q&A below 👇 #CryptoAssets #CryptoRegulation #MiCA #Blockchain #Fintech #CryptoCompliance #DigitalAssets #ESMA #CryptoServices #FinancialRegulation