The European Parliament’s free path to regulation Crypto Asset Market (Mica) opens a new phase of anticipation for both companies in the industry and potential customers or investors. It is expected that within 18 months it will be possible for traditional banks to offer financial and investment products based on cryptocurrencies. The idea of the European Parliament is to provide legal security with a common regulatory framework for the entire financial ecosystem formed around Blockchain (blockchain) and cryptocurrencies.
The aim is to establish the rules of the game for users, service providers and other interested entities. and avoid security issues caused by agents. The regulations will also serve to combat money laundering by identifying cryptocurrency holders and monitoring their operations. Cryptocurrency investment firms are easing the legal framework a bit, ensuring that a clear legal framework is barriers to entry into the industry and reinforce the position of most solver operators. What is meant by cryptoactive all digital representations of securities and rights that can be stored and transferred electronically using DLT technology (Distributed Ledger Technology)Those who are often associated with Blockchain and drive new developments of the web3, especially the next big step in the evolution of the Internet where no one owns the service platforms.
1. When does MiCa take effect?
After being approved by the European Parliament, the MiCa regulation on the regulation of digital currencies will enter into force 20 days after its publication in the ‘Official Journal of the European Union (DOUE). Different deadlines are foreseen for the full implementation of MiCa.: The provisions set out in Title III and Title IV will apply 12 months from the date of their entry into force. As a whole, this Regulation will apply 18 months from the date of its entry into force.
2. What does the MiCA Regulation mean for financial institutions?
For financial institutions, this new MiCa regulation means: opportunity to expand your services and securely present a wider variety of assets to your customers, including cryptocurrencies. They can offer cryptocurrency services to their customers after requesting at least 40 days prior authorization from the Bank of Spain. These services can be any kind of financial product, from, for example, bitcoin deposits to services for exchanging digital currencies for legal payment. BBVA and Santander have been working on such projects for some time.
3. Can any company sell cryptocurrency?
No. New entities and companies that want to offer trading and other services based on cryptocurrencies from scratch, Request a special authorization from the Bank of Spain as a crypto asset service provider, which the firm must verify solvency and regulatory compliance. Once the authorization is granted, it will not be permanent and can be withdrawn when the conditions for receiving it are no longer met, not used within 12 months from the grant date, or services are not provided. .
4. Does the new legal framework offer more guarantees for crypto-asset buyers?
after bankruptcy FTX and the difficulties of companies that allocate the investments of cryptocurrency buyers to risky investments have been identified. a set of obligations that crypto-asset providers must comply with to guarantee the funds of users of their platform. It is the equivalent of capital and solvency guarantees that banks have to comply with. It will be imperative to have effective procedures for the identification, management and disclosure of potential conflicts of interest. On the other hand, Owners of intermediary institutions should be clearly identified For this reason, customers will be able to use their rights effectively and claim them in case of conflicts of interest. Claims and complaints services should be similar to those available in traditional banking.
5. Will it be possible to invest in companies from other countries?
MiCA should allow providers Cross-border service delivery within the European Union by notifying the competent authority. The competent authority of the Member State of origin shall, within 10 working days of receipt, submit this information to the single point of contact of the host Member States, the ESMA (European Securities and Markets Authority) and the EBA (European Banking Authority). Thereafter, the competent authority of the issuing Member State shall without delay notify the crypto-asset service provider, and crypto-asset service providers may start offering crypto-asset services in a Member State other than their parent Member State from the date of receipt. within 15 calendar days of posting such notice or the information set forth above at the latest.
6. What do current cryptocurrency operators think about the new legal framework?
Javier Garcia de la Torremanager Binance Spain and Portugal believe that “MiCA will bring regulatory clarity to one of the world’s largest markets, making the EU and Spain an even more attractive place for Web3 companies to innovate and attract talent”. At Binance, they think these rules of the game will increase the activity of crypto exchanges or exchange houses. “We will make the necessary changes to our business over the next 12-18 months to ensure full compliance, protect users, and support innovation,” Garcia said.
Bit2MeA company registered with the Bank of Spain and headquartered in Spain. Participated by Inveready Venture Capital, a fund with more than €1,000 million in assets under management, is in favor of establishing common rules and procedures for all operators that “should increase the confidence of both institutions and private clients in the crypto companies and blockchain sector”. One of the key elements for Bit2Me Director of Compliance, Joâo Augusto Teixeira, is the necessary legal framework for “measures to prevent market abuse and situations affecting market integrity”.