Authorities prepare for new cryptocurrency regulations in Europe

Not only are cryptocurrency companies preparing for new cryptocurrency regulations in Europe, they are also authoritieswho are strengthening their ranks as the Markets for Crypto-Assets (MiCA) come into effect on June 30.

There are vacancies for cryptography specialists at the European Banking Authority (EBA), the European Union’s financial institution (EU) financial agency responsible for regulating stablecoins in the region.

One expert will oversee crypto and decentralized finance (DeFi) markets, another will help classify crypto assets under new legal categories, and a third will oversee the enforcement of cybersecurity and crypto regulations. The EBA is seeking candidates for all three positions.

The impact of the MiCA framework is significant. Regulations for stablecoins came into effect on June 30, and by December, regulations for crypto service providers will be operational.

Source: ESMA

All entities in the cryptocurrency market must prepare and ensure compliance.

This implies that regulators and crypto platforms will kick stablecoins out of EU markets if they fail to meet standards regarding governance, custody and reserve requirements.

While there may be some confusion in the business world about the practical applications of these guidelines, rest assured that efforts are underway to provide clarity and support.

The EBA and other regulators are committed to helping businesses adapt to these changes.

The EBA spent years working through issues surrounding the implementation of MiCA and published its final recommendations in June.

The banking supervisor is responsible for ensuring that national authorities comply with the final guideline, now that it has been published.

The EBA will also influence any future DeFi legislation.

Although MiCA does not cover decentralized protocols, the European Commission is expected to examine DeFi and determine whether regulation is necessary.

The EBA monitors the cryptocurrency market and can provide its findings to the Commission.

Cryptocurrency companies prepare for challenges

The cryptocurrency industry is going through a crucial period. It must prepare for several new rules, of which MiCA is one of the main objectives. The urgency of this preparation cannot be overestimated.

One of the openings also mentions the role of the EBA in overseeing the Digital Operational Resilience Act.

Under the regulation, the technological security of financial institutions, including crypto service providers, will be subject to more rigorous testing, resulting in increased regulatory costs for businesses.

It is essential to note that companies must have met the requirements of the Digital Operational Resilience Act by January. This deadline underscores the urgency of complying with this important regulation.

In response, the cryptocurrency exchange Stamp-bit announced last week that it would do so remove from its platform any euro-denominated stablecoin that does not adhere to MiCA, such as the euro-denominated stablecoin EURT.

Bitstamp will not list any new EMTs that do not meet MiCA requirements or engage in any commercialization of them, the company said.

Binance has warned its users about disruptions in stablecoins. In a recent email to its customers, the exchange said it “will not delist these stablecoins.” […] We will implement some restrictions for EEA users, but only on certain products, and we will offer alternatives with regulated stablecoins or other crypto assets.

The cryptocurrency industry is going through a crucial period. It must prepare for several new rules, of which MiCA is one of the main objectives. The urgency of this preparation cannot be overestimated.

One of the openings also mentions the role of the EBA in overseeing the Digital Operational Resilience Act.

Under the regulation, the technological security of financial institutions, including crypto service providers, will be subject to more rigorous testing, resulting in increased regulatory costs for businesses.

It is essential to note that companies must have met the requirements of the Digital Operational Resilience Act by January. This deadline underscores the urgency of complying with this important regulation.

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