New EU rules on crypto-assets 🛡️
The second and final part of the Markets in Crypto-Assets Regulation (MiCA) becomes applicable today.
The rules will promote innovation while containing the risks for investors and consumers.
Find out more: https://t.co/QIqKZrloeV pic.twitter.com/xCQz7bPxcj
— EU Finance 🇪🇺 (@EU_Finance) December 30, 2024
What the EU is doing and why
Digitalisation is transforming finance. This can lead to innovative new products, services, applications and business models. Digital finance has a key role to play in shaping a more competitive, sustainable, resilient economy – and a more inclusive, modern, prosperous society.
A crypto-asset is a digital representation of value or a right that can be transferred or stored electronically using distributed ledger technology or similar technology. Crypto assets are a digital innovation that can streamline capital-raising processes, enhance competition and create an innovative and inclusive way of financing for consumers and SMEs. Crypto-assets can also be used as a means of payment and can present opportunities in terms of cheaper, faster and more efficient payments, in particular on a cross-border basis, by limiting intermediaries.
In accordance with the 2020 digital finance strategy, the EU adopted a comprehensive legislative framework that regulates the issuing of crypto assets as well as the services provided in respect of crypto-assets. The Regulation on the Markets in Crypto-Assets (MiCA) covers the crypto-assets and related services and activities that are not covered by other Union legislative acts on financial services.
This dedicated and harmonised framework for markets in crypto-assets will support innovation, will provide for the proportionate treatment of issuers of crypto-assets and crypto asset service providers to scale up their business cross borders, and provide significant benefits in terms of cheaper, faster and safer financial services and asset management.
Source: European Commission
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
As Technology Evolves, Asset Managers Adapt and Innovate
Citi Changes Organizational Structure
SEC Charges Virtu for Disclosures Relating to Information Barriers
ICE Futures Singapore Partners with CoinDesk Indices
Related articles
-
By introducing a cash-settled index-based instrument, ICE is opening up a larger pool of liquidity.
-
Trade bodies said FiDA will undermine competitiveness of the European financial industry.
-
The new rules will contribute to reducing excessive reliance on systemic CCPs in non-EU countries.
-
European markets are on the cusp of transformation if demand for exchange-traded options can be unlocked.
-
The regulator suggests following a coordinated approach with other jurisdictions in Europe.