micapass’ Post

The The Legal Industry Reviews published today my #article on #Compliance #Challenges in the #cryptoassets markets. 🌎 🌎 🌎 The growth of crypto assets markets presents significant challenges for #regulatory compliance, and the decentralized nature and lack of uniform regulation require a flexible and proactive approach by companies and regulators. Throughout my article, I describe the different challenges which companies and regulators face and how are they addressing such challenges: · 👉      One of the main difficulties is the lack of a crypto assets uniform international regulation, and in this sense, the EU has taken the lead by approving #MiCA, the #TravelRule and the #PilotRegime.   ·  👉     The complexity of the customer identification (#KYC) in the #digitalassets markets. · 👉      Managing the #digitalrisk. With #DORA taking the lead in the EU as the first global regulatory framework on digital operational resilience for financial institutions, effective on Jan 2025. ·  👉     Difficulty on monitoring transactions, which are often traded on decentralized platforms or peer-to-peer exchanges. ·  👉     Consumer #education and #awareness, many of whom, including investors and professionals in the financial sector, still have a limited understanding of crypto assets and the #risks associated with them. ·  👉     Collaboration between stakeholders is essential to address compliance challenges in digital assets markets. Definitely, interesting times for #Compliance ⚖ ⚖ ⚖ 🌍 🌎 🌏

With the year-end deadline looming for the European Union’s Markets in Crypto-Assets (MiCA) regulation, many firms are still grappling with the wide-ranging requirements—including new rules and obligations for monitoring, detecting and preventing market abuse. The crypto industry has long been synonymous with a lack of clear regulatory mandates, but there has been a concerted push from the regulators over recent years to bolster both consumer and institutional confidence. MiCA marks the most ambitious and comprehensive regulatory initiative to date, and there can be no doubt that other jurisdictions across the world will seek to pen similar approaches. This article outlines how firms can navigate the challenges that MiCA brings, to get ahead of the regulatory curve. Read more: https://hubs.ly/Q02YKgQr0 #MiCA #MarketAbuse #TradeSurveillance

The Markets in Crypto-Assets Regulation (#MiCA) represents a significant step forward in the European Union’s (EU) approach to regulating digital assets by creating a harmonised regulatory framework for crypto-assets. MiCA applies to natural or legal persons who are involved in the issuance, offer to the public and who seek admission to trading of #crypto-assets, or service providers within the crypto-asset industry within the EU, subject to certain exemptions. ‘Crypto-assets’ are defined as “digital representations of value or of rights that have the potential to bring significant benefits to market participants, including retail holders of crypto-assets.” Under this Regulation, crypto-assets are divided into three main categories. Find out more here: https://lnkd.in/eu4cxN7D PwC Malta Chris Mifsud Bonnici Mark Abela

🇪🇺 On June 30, #MiCA takes partial effect in Europe. What does this mean for digital securities? Our latest newsletter breaks it down. Discover the key highlights below 👇 Tokenized securities will remain unaffected, as MiCA doesn't apply to crypto-assets that qualify as financial instruments. These will continue under the existing MiFID II framework. Utility tokens and stablecoins will face the biggest changes, with new stringent requirements set to transform their issuance and management. This is because most cash-equivalent tokens currently use the ERC-20 standard, which lacks owner identification capabilities. Under MiCA, issuers of utility tokens and stablecoins might need to transition to the ERC-3643 standard. This transition would enable them to issue permissioned tokens with essential #compliance features, such as owner identification and additional controls. 📰 Explore the full details in our newsletter. Read more here: https://lnkd.in/eV3Jk7gu

What is the Markets in Crypto-Assets (MiCA) Regulation in the EU? MiCA is an EU-wide regulatory framework for 'crypto-asset services' that will come into full effect on 30 December 2024. Asset-referenced tokens and e-money tokens (a.k.a. stablecoins) became regulated under MiCA from 30 June 2024. Under MiCA, once a 'crypto-asset service provider' has obtained a licence from its 'home' Member State and met the notice requirements it can provide its services in other EU Member States. Read the full legal text here: https://buff.ly/3MU6VHz

A lot of people have been talking about the FIT21 bill and its potential to shape our industry's future by providing a clear regulatory framework for crypto assets.  Here's a couple of considerations: 📜 The bill establishes comprehensive protections for consumers in the U.S. digital assets market. 🔍 The bill aims to clear up SEC and CFTC jurisdictional confusion. This is important because the CFTC would assume jurisdiction from the SEC over the commodities – a huge step towards providing regulatory clarity. 🌐 There’s a significant focus on global cooperation and regulatory harmonization. This is important for cooperating with other countries on Anti-Money Laundering enforcement. 🇪🇺Some of the exemptions such as the one about transaction size share some similarities with the EU’s MiCA. The bill also seems to follow MiCA’s direction when it comes to treating digital assets as their own legal category. So far, the bill has received bipartisan support in Congress and will now be evaluated by the White House. I will be monitoring this regulatory process very closely. Stay tuned for more updates!

Innovators embrace clear regulations to launch products that solve problems, not create new ones. At the same time, staying abreast of the patchwork of regulations can be daunting: the global crypto regulatory landscape is evolving rapidly, with regulatory authorities emphasizing consumer protection, financial stability, and combating illicit activities. The best authorities balance regulation to enhance innovation. At the end of the day, do the right thing. The entry of mature institutional players is fostering a more structured and transparent market environment. This transparency will help underwrite strong high integrity assets and perish shadowy projects. #CryptoRegulation #web3 #innovationpolicy

The UK's FCA plans to ban public offerings of crypto assets - The new legislation is expected to take effect in 2026. - The legislation will likely allow exceptions for crypto asset trading platforms and offers that meet specific criteria. - The FCA is now seeking industry input on market admission standards, disclosures, and a market abuse regime. ironic given that earlier this year the space is championing UK's regulatory progressiveness

🔍 Confusing Times Ahead in Crypto Regulation! ⏳ The European Union's recent rollout of the MiCA (Markets in Crypto-Assets) framework is stirring palpable uncertainty among crypto entities. Aimed at strengthening investor protection and financial stability, MiCA introduces rigorous requirements, including sustainability disclosures. 📊 Key Points: - MiCA mandates crypto firms in the EU to disclose their sustainability-related risks and practices. - Risk analysts point out a significant confusion over varying disclosure deadlines, causing operational challenges for these entities. 💬 For industry leaders, staying compliant involves navigating through murky regulatory waters. How can organizations adapt effectively to these sweeping regulatory changes? 🤔 Are we prepared for the increased administrative load or is this a hurdle too steep for smaller players? Let's discuss the implications and share best practices for thriving under stringent compliance requirements. #CryptoRegulation #MiCA #Sustainability #EURegulations #CryptoIndustry #RiskManagement Read More:

🚀 The final part of MiCAR becomes applicable today🌐 This landmark regulatory framework is designed to provide clarity, enhance consumer protections, and foster innovation in the crypto and blockchain sectors. As part of the European Commission’s Digital Finance Strategy, MiCAR establishes an EU framework for the regulation of specified activities involving crypto-assets that are not already covered by EU law, namely: ✅Issuance of crypto-assets ✅Custody and administration of crypto-assets ✅Operation of crypto-asset trading platforms and exchanges (to fiat or other crypto). Let's get ready to embrace the future of digital finance! #MiCAR #CryptoRegulation #DigitalFinance #EURegulation #FintechTransformation