EU regulators reinforce crypto framework with new shareholder vetting rules under MiCA
The post EU regulators reinforce crypto framework with new shareholder vetting rules under MiCA appeared on BitcoinEthereumNews.com. Brussels, DATE – The European Union is raising the bar for crypto asset service providers, with new shareholder vetting rules proposed as a part of the Markets in Crypto Assets regulation (MiCA). This unified framework seeks to harmonize crypto activities across its 27 member states, ensuring integrity, transparency, and regulatory compliance in the rapidly expanding digital currency sector. Setting the stage with MiCA’s regulatory framework MiCA, poised for implementation in December 2024, stands out as a landmark legislation in the evolving global cryptocurrency landscape. Its reach extends to crypto assets that are hitherto untouched by existing EU financial norms. Through MiCA, the EU is attempting to build an all-encompassing framework for various stakeholders in the crypto universe, be it issuers, service providers, or everyday users. At its core, the legislation revolves around pivotal domains such as authorizations, rigorous supervision, unwavering consumer protection, market integrity, and maintaining financial equilibrium. MiCA’s overarching aim? To ensure crypto entities operate in a manner that neither compromises the robustness of the financial system nor jeopardizes public welfare. Drilling down on ownership and governance standards Recent consultations by the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have shed light on the nitty-gritty of what crypto asset service providers need to adhere to. The requirements emphasize responsible ownership and governance. For shareholders boasting a qualifying stake (those who possess more than 10% of either capital or voting rights), the fit and proper criteria become crucial. Such stakeholders must not be tainted by past convictions, especially those linked to grave concerns like money laundering, terrorist financing, or any other infractions that can cast shadows on their reputability. It’s not just shareholders who are under the microscope. Board members of crypto entities also face rigorous standards. These individuals must be deemed fit and proper,…
The post EU regulators reinforce crypto framework with new shareholder vetting rules under MiCA appeared on BitcoinEthereumNews.com.
Brussels, DATE – The European Union is raising the bar for crypto asset service providers, with new shareholder vetting rules proposed as a part of the Markets in Crypto Assets regulation (MiCA). This unified framework seeks to harmonize crypto activities across its 27 member states, ensuring integrity, transparency, and regulatory compliance in the rapidly expanding digital currency sector. Setting the stage with MiCA’s regulatory framework MiCA, poised for implementation in December 2024, stands out as a landmark legislation in the evolving global cryptocurrency landscape. Its reach extends to crypto assets that are hitherto untouched by existing EU financial norms. Through MiCA, the EU is attempting to build an all-encompassing framework for various stakeholders in the crypto universe, be it issuers, service providers, or everyday users. At its core, the legislation revolves around pivotal domains such as authorizations, rigorous supervision, unwavering consumer protection, market integrity, and maintaining financial equilibrium. MiCA’s overarching aim? To ensure crypto entities operate in a manner that neither compromises the robustness of the financial system nor jeopardizes public welfare. Drilling down on ownership and governance standards Recent consultations by the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have shed light on the nitty-gritty of what crypto asset service providers need to adhere to. The requirements emphasize responsible ownership and governance. For shareholders boasting a qualifying stake (those who possess more than 10% of either capital or voting rights), the fit and proper criteria become crucial. Such stakeholders must not be tainted by past convictions, especially those linked to grave concerns like money laundering, terrorist financing, or any other infractions that can cast shadows on their reputability. It’s not just shareholders who are under the microscope. Board members of crypto entities also face rigorous standards. These individuals must be deemed fit and proper,…
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