EU stablecoin activity will need to comply with new regulations following the partial implementation of MiCA next week, an analyst said.
The upcoming Markets in Crypto Assets framework will enforce stringent regulatory requirements for stablecoin activity in the European Union that could adversely impact the bloc's cryptocurrency sector, an analyst said. From next Monday onwards, stablecoin activity in the EU must comply with the new requirements following the partial implementation of MiCA across the entire bloc.
According to Chainalysis Head of Policy in Europe Matthias Bauer-Langgartner, stablecoins are the biggest use case for crypto-assets today, so MiCA’s stablecoin regime is a pivotal moment for the regulation of crypto-assets in Europe. "The slightly nebulous scope of the stablecoin regime’s, particularly with regards to current virtual-asset service providers , and the dual classification of EMTs as both funds and crypto-assets are likely to create significant uncertainties from June 30th onwards," Bauer-Langgartner told The Block.
The EU's MiCA regulatory framework becomes partially applicable for crypto asset service providers and their KYC/AML requirements at the end of June, and full compliance with the bloc's new regulatory framework will be required by December 2024. Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures. © 2023 The Block.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Binance prepares for MiCA rules, updates stablecoin strategyBinance is preparing for the MiCA regulations to come into force by dividing stablecoins into regulated and unauthorized categories for users in the European Economic Area.
Read more »
European stablecoin provider halting issuance amid MiCA, following Binance announcementCirculation of Lugh's euro-pegged stablecoin has almost hit zero as the company guarantees refunds.
Read more »
Tether 'concerned' by EU's 'problematic' MiCA stablecoin requirements, says CEOTether CEO Paolo Ardoino told The Block that the EU's MiCA regulation 'contains several problematic requirements' regarding stablecoins.
Read more »
EU Body Publishes Final Draft Technical Standards for Prudential Matters: MiCACamomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.
Read more »
What the MiCA Bill Could Mean for the Future of DecentralizationZac Colbert has been writing about cryptocurrencies, intergenerational wealth and FinTech for over half a decade.
Read more »
Uncertainty looms for crypto industry and stablecoins ahead of MiCA deadlineA key MiCA deadline in the European Union is approaching on June 30, impacting the regulation of the crypto market across member states.
Read more »