CoinDesk reports:
The Cyprus Securities and Exchange Commission (CySEC) has launched a consultation to gather market feedback on the proposed fees and reporting requirements under the Markets in Crypto-Assets (MiCA) regulation. The initiative invites stakeholders to provide feedback and influence the future framework, with responses due by July 17, 2024.
MiCA Regulatory Framework
MiCA aims to establish a unified regulatory framework for crypto-assets across Europe. It targets crypto-assets that are fungible but not classified as financial instruments. The regulation, which came into effect on May 31, 2023, is designed to create clarity and consistency in the cryptocurrency market.
The regulation categorizes crypto-assets into three main types: asset-referenced tokens, e-money tokens, and other crypto-assets. MiCA also introduces new categories of entities that will be supervised by CySEC, including providers of crypto-assets, issuers of ARTs (excluding credit institutions), and crypto-asset service providers.
The MiCA regulation has already brought significant changes to the industry. This month, Binance announced plans to make changes to ensure compliance in the financial, banking, investment, and insurance sectors. Compliance refers to adhering to rules or orders set by government regulatory agencies when providing services or processing transactions. Financial compliance is also a state of following established guidelines or standards. This designation can also include efforts to ensure organizations comply with industry regulations and government legislation. Understanding compliance is reading this term while trading on a reward platform. Under the MiCA framework, only regulated companies can issue and provide stablecoins. Cryptocurrency exchanges have stated that many existing stablecoins on Binance currently do not meet these standards and will be designated as unauthorized stablecoins.
MiCA Coming into Effect
Meanwhile, ESMA has developed a comprehensive plan to address cryptocurrency-related risks and establish a regulatory framework for digital assets under MiCA. These measures include authorization, governance, conflict resolution, and complaint handling procedures, aimed at strengthening the crypto ecosystem.
The first scheme will be launched in July 2023, involving notification content, authorization applications, and complaint handling procedures.
MiCA has already yielded positive results in the digital assets space. According to a report by global identity intelligence company AU10TIX, fraud activities have significantly decreased by 51% in the cryptocurrency field, indicating that attacks have moved away from the industry due to the implementation of the Markets in Crypto-Assets (MiCA) regulation. Like any other high-value industry, the financial services sector is subject to strict regulation to help curb illegal activities and manipulation. Each asset category has its own set of protocols to combat its respective forms of abuse. In the forex space, regulation is carried out by authorities in multiple jurisdictions, although there is ultimately a lack of a binding international order. Who are the main regulatory bodies in the industry? Regulatory bodies, such as the UK Financial Conduct Authority (like any other high-value industry, the financial services industry is subject to strict regulation to help curb illegal activities and manipulation. Each asset category has its own set of protocols to combat its respective forms of abuse. In the forex space, regulation is carried out by authorities in multiple jurisdictions, although there is ultimately a lack of a binding international order. Who are the main regulatory bodies in the industry? Regulatory bodies, such as the UK Financial Conduct Authority (read this term).
Additionally, the report also revealed how regulatory crackdowns in the digital assets space have shifted fraudsters towards the payments industry. The report emphasized that fraud activities in the payments industry increased by 56%, driven by factors such as increased digital transaction volumes in the Asia-Pacific region and economic recovery in North America.