The post EU Banking Regulators Set To Define Rules For Crypto Shareholders appeared on BitcoinEthereumNews.com.

As the EU gets ready for MiCA implementations, new updates are cropping from various fronts. On Friday, the body announced something that will impact crypto company shareholders. It said that holders with more than 10% stake will be examined for previous convictions. They will be vetted under the bank-style rules proposed by EU regulators.  What Does This Mean For Crypto Company Shareholders? The rule certainly indicates the government’s intention to keep a close eye on the firms. Especially, after the FTX scam, regulators have become more vigilant. Some distinguished C-level executives are currently in a court battle with the SEC. Along with FTX’s Sam Bankman-Fried, Binance’s Changpeng Zhao and Celsius’ Alex Mashinsky are also facing charges.  According to the Securities and Exchange Commission (SEC) of the US, they failed to comply with the rules. EU wants all the companies operating in this space to toe the line. The Markets in Crypto Assets (MiCA) regulations will be implemented in December 2024. It would mark a watershed moment as crypto will be inducted into the mainstream economy for the first time. Particularly, the scale at which it is happening is considerable. Thus, the European regulators want to make it foolproof. With this new clause, they will ensure that only the reliable parties join the fray. Notably, the MiCA regulations will authorize companies to operate in 27 nations. However, if the entities don’t meet the set standards, then they will be barred from functioning. The new rule mandates shareholders as well as board members to get a clean chit from authorities. If they have a history of terrorism funding or money laundering, it would affect their reputation. The ESMA and EBA said that this condition has to be met. They also said that the agencies will maintain the banking and securities law at…

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Filed under: News - @ October 21, 2023 12:22 pm