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EU Launches Crypto-Asset Classification Tools
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On July 12th, three key European Supervisory Authorities, EBA, EIOPA, and ESMA, released a consultation paper.
This initiative is crucial as MiCA regulations begin to take effect.
New Crypto-Asset Classification Tools by EU Authorities
The newly released guidelines provide a comprehensive approach to classifying various types of crypto assets. The framework introduces a question-based test to help firms determine whether a token falls under the MiCA regulations. This test involves assessing factors such as:
- The identity of the issuer.
- The token’s blockchain foundation, and whether the token qualifies as a financial instrument.
By using these structured prompts, firms can more accurately categorize tokens according to MiCA standards.
Source: X
The guidelines distinguish between different types of crypto assets. This includes standard crypto assets, electronic money tokens (EMTs), and asset-referenced tokens (ARTs). For tokens classified as ARTs, issuers are required to include a legal opinion in their white papers. The opinion must confirm that the tokens are not EMTs or any other excluded asset types under MiCA. The goal is to ensure that ARTs are correctly classified and compliant with the relevant regulations.
More About EU’s Crypto-Asset Classification Tools
For crypto assets that do not fit the ART or EMT categories, the guidelines mandate that the white papers provide a detailed explanation of the asset’s classification. This requirement aims to enhance transparency and ensure that all digital assets are appropriately categorized under MiCA, thereby reducing regulatory ambiguity.
Source: X
These new classification tools are designed to bring greater consistency to the crypto market, aligning with MiCA’s objectives to create a unified regulatory framework across the EU. By providing clear guidelines and a standardized approach to asset classification, the EU hopes to facilitate smoother compliance for crypto firms and foster a more stable and transparent digital asset environment.
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July 22, 2024 at 06:54AM
July 22, 2024 at 06:55AM
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