The post The MiCA crypto regulation takes shape according to the EBA appeared on BitcoinEthereumNews.com.

The implementation of the MiCA crypto regulation is progressing rapidly, and with it the introduction of new technical standards and guidelines by the European Banking Authority (EBA).  The EBA has recently published a comprehensive package of technical standards and guidelines aimed at providing regulatory clarity for token issuers, with a particular focus on asset-referenced tokens (ART) and electronic money tokens (EMT) across Europe. The MiCA regulation, adopted by the European Union, is designed to create a coherent and secure legal framework for the issuance and use of crypto-assets.  This regulation aims to strengthen investor protection, ensure financial stability, and promote technological innovation in the crypto-asset sector. New guidelines for MiCA crypto regulation based on EBA guidelines The new guidelines and technical standards of the EBA represent a fundamental step towards the effective implementation of MiCA. These standards are designed to ensure that ART and EMT issuers operate in compliance with European regulations, guaranteeing transparency, security, and integrity in the crypto-asset market. Tokens linked to activities, or ART, are crypto-assets whose value is connected to one or more underlying assets, such as commodities or fiat currencies. The new EBA guidelines require that ART issuers maintain an adequate reserve of the underlying assets to ensure the stability and value of the token.  Furthermore, the issuers must provide detailed and transparent information to investors regarding the underlying assets, reserve policies, and investor protection mechanisms. The EBA also emphasizes the importance of robust governance for ART issuers. Companies must implement governance structures that ensure prudent management of resources, separation of activities, and protection of investors’ rights.  Furthermore, measures must be adopted to prevent conflicts of interest and ensure compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. The electronic money tokens, or EMT, are crypto-assets designed to function as digital money, with a…

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Filed under: News - @ June 14, 2024 3:22 pm