Authorities Prepare for New Cryptocurrency Regulations in Europe

Not only are cryptocurrency companies preparing for the new cryptocurrency regulations in Europe, but they are also doing so authoritywho are strengthening their ranks with the implementation of the Markets in Crypto-Assets (MiCA) on June 30.

There are open positions for cryptocurrency specialists at the European Banking Authority (EBA), the European Union body (European Union) financial agency responsible for regulating stablecoins in the region.

One expert will oversee the cryptocurrency and decentralized finance (DeFi) markets, another will help classify cryptocurrencies into new legal categories, and a third will oversee the enforcement of cybersecurity and cryptocurrency regulations. The EBA is seeking candidates for these three positions.

The impact of the MiCA framework is significant. Stablecoin regulations came into force on June 30, and crypto service providers regulations will be in place by December.

Source: ESMA

All entities in the cryptocurrency market must prepare and ensure compliance.

This means that regulators and cryptocurrency platforms will expel stablecoins from EU markets if they fail to meet standards related to governance, custody and reserve requirements.

While there may be some confusion in the business world about the practical applications of the guidelines, rest assured that efforts are underway to provide clarity and support.

The EBA and other regulators are committed to helping companies navigate these changes.

The EBA spent years addressing the implementation issues of MiCA and published its final recommendations in June.

The banking supervisory authority is required to ensure that national authorities adhere to the final version of the guidelines, now that it has been published.

Likewise, the EBA will influence any future DeFi legislation.

While MiCA does not cover decentralized protocols, the European Commission needs to look into DeFi and determine whether regulation is needed.

The EBA monitors the cryptocurrency market and can provide the Commission with its findings.

Cryptocurrency firms brace for challenges

The cryptocurrency business is going through a crucial period. It must prepare for several new regulations, with MiCA being a key target. The urgency of this preparation cannot be overstated.

One of the openings also mentions the role of the EBA in supervising the Digital Operational Resilience Act.

Under this rule, the technological security of financial institutions, including crypto service providers, will be subjected to more rigorous testing, resulting in increased regulatory costs for companies.

It is important to note that companies must have met the Digital Operational Resilience Act requirements by January. This deadline underscores the urgency of complying with this important regulation.

In response, the cryptocurrency exchange Bit stamp announced last week that he will do so remove from your platform all stablecoins whose price is in euros and which do not adhere to MiCA, such as the EURT stablecoin denominated in EUR.

Bitstamp will not list new EMTs that do not meet MiCA requirements, nor will it engage in any marketing activities for them, the company said.

Binance has warned its users of stablecoin disruptions. In a recent email to its customers, the exchange said it “will not be delisting these stablecoins. […] We will implement some restrictions for EEA users, but only on certain products, and offer alternatives with regulated stablecoins or other cryptocurrencies.”

The cryptocurrency business is going through a crucial period. It must prepare for several new regulations, with MiCA being a key target. The urgency of this preparation cannot be overstated.

One of the openings also mentions the role of the EBA in supervising the Digital Operational Resilience Act.

Under this rule, the technological security of financial institutions, including crypto service providers, will be subjected to more rigorous testing, resulting in increased regulatory costs for companies.

It is important to note that companies must have met the Digital Operational Resilience Act requirements by January. This deadline underscores the urgency of complying with this important regulation.

Source