Three EU regulators have jointly released a consultation paper, sharing crypto classification tools for crypto firms, which will be applicable under the Markets in Crypto-Assets Act.
New guidelines for crypto firms in the European Union (EU) are now public. These new rules pertain to crypto classification tools under the Markets in Crypto-Assets Act of the EU. Three European regulators have also released a consultation paper on the guidelines. Two of these regulators, the European Banking Authority and the European Securities and Markets Authority, have been vocal about transparent crypto regulation.
According to a press release, the new guidelines will create a common approach to classifying crypto assets in the EU. The announcement listed various classifications, such as standard tokens, asset-referenced tokens, electronic money tokens, and others. The press release and the consultation paper present further rules for crypto firms issuing each of these tokens.
Further, crypto firms can respond to the consultation paper by October 2024. Moreover, crypto industry captains have responded positively to the development and praised the initiative.
Meanwhile, the press release officially stated, To support market participants and supervisors in adopting a convergent approach to the classification of crypto-assets, the guidelines propose a standardized test, as well as templates for explanations and legal opinions that provide descriptions of the regulatory classification of crypto-assets..”
The consultation paper also mentions compliance and reporting obligations for crypto firms. It also sheds light on the implementation of the guidelines and the standardized test proposed by the regulators. The paper will likely be a helpful tool for crypto firms to comply with the MiCA regarding the classification of their crypto assets.
Crypto regulation in the EU has been transparent since the advent of the MiCA. Regulators have constantly engaged with the industry and deliberated on the future scope of the crypto regulatory landscape.
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