Cyprus Securities and Exchange Commission (CySEC) has launched a consultation to gather market views on the proposed fees and reporting requirements under the Markets in Crypto-Assets Regulation (MiCA). This initiative invites stakeholders to give their opinions 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, effective from May 31, 2023, seeks to create clarity and consistency within the crypto market.

Notably, the regulation categorizes crypto-assets into three main types: asset-referenced tokens (ARTs), electronic money tokens, and other crypto-assets. Besides that, the MiCA has introduced new categories of entities that will be under the supervision of CySEC.

These include the offerors of crypto-assets, issuers of ARTs, excluding credit institutions, entities issuing asset-referenced tokens, and crypto-asset service providers.

Already, the MiCA regulations have led to notable changes in the industry. This month, Binance announced plans to make changes to ensure compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term in its trading on rewards platforms. Under the MiCA framework, only regulated firms can issue and offer stablecoins. Currently, many existing stablecoins on Binance do not meet these criteria and will be designated as unauthorized stablecoins, the cryptocurrency exchange said.

MiCA Takes Effect

Meanwhile, the ESMA has laid out a comprehensive plan to address crypto-related risks and establish a regulatory framework for the digital asset space under MiCA. These measures, encompassing authorization, governance, conflict resolution, and complaint handling procedures, seek to strengthen the crypto ecosystem.

The first package, set to launch in July 2023, regards mandates, such as notification content, application for authorization, and complaint handling procedures.

Already, MiCA is bearing positive results in the digital asset space. According to a report by global identity intelligence company AU10TIX, fraudulent activities have moved away from the cryptocurrency space, marking a significant decline of 51% in attacks due to the implementation of the Market in Crypto Asset (MiCA) regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.

Additionally, the report disclosed how regulatory crackdowns in the digital asset space are redirecting fraudsters toward the payments sector. The report highlighted a 56% growth in fraud in the payments sector, driven by factors like increased digital transaction volumes in the Asia Pacific region and the economic recovery in North America.