Blockchain
MiCA Deadline in 3 Days, Only 9% of Companies Fully Prepared: Report
A recent report commissioned by Eventus and conducted by Acuiti sheds light on the anticipated impact of the European Union’s Markets in Crypto Assets Regulation (MiCA) on cryptocurrency trading surveillance. The report, titled “The Impact of MiCA on Crypto Market Surveillance: Insights and Challenges,” is based on interviews with senior executives from 68 firms involved in crypto trading.
MiCA Compliance: Progress and Challenges
MiCA represents a pioneering regulatory framework within a major financial jurisdiction, setting stringent requirements for market participants. Similar to the EU’s Market Abuse Regulation (MAR), MiCA is driving the industry towards establishing comprehensive market surveillance systems. Despite the progress, the report indicates significant gaps in compliance readiness:
- Full Compliance: Only 9% of surveyed firms fully comply with MiCA requirements.
- Lack of Preparation: 25% of firms have yet to commence preparations.
As the implementation deadline approaches at the end of the year, firms are urged to ascertain their regulatory scope and initiate compliance measures promptly.
Key Insights from the Report
Ross Lancaster, Head of Research at Acuiti, highlighted several findings:
- Growing Sophistication: There is an increasing sophistication in market surveillance practices, even among firms initially excluded from MiCA’s scope. Notably, 57% of these firms already employ robust surveillance systems.
- Third-Party Assistance: Many firms are turning to third-party vendors for compliance support, especially those not previously operating under MIFID II. Lancaster noted the significant operational lift required for compliance and the relative lack of awareness in some market areas regarding MiCA’s scope.
Lancaster emphasized the necessity for firms to promptly address these gaps to meet the compliance deadline.
Outsourcing Trends and Compliance Costs
The study also highlights consultations on MiCA’s final technical standards, revealing varying stages of readiness among affected firms:
- Preparation Stages: 25% of firms have not yet initiated preparations, while others are at different readiness levels.
- Outsourcing Plans: 64% of firms plan to outsource system development, facing challenges in selecting suitable vendors and allocating resources effectively.
Key concerns for firms include:
- Compliance Costs: Significant financial investment required for compliance.
- Qualified Personnel: Difficulty in securing skilled professionals to manage compliance processes.
These concerns reflect broader industry adjustments to new regulatory mandates. As regulations evolve, industry leaders must adapt to the new rules under MiCA.
Insights from Industry Leaders
Eventus CEO Travis Schwab shared insights on the industry’s regulatory landscape:
- Significant Investment: Eventus has invested heavily to meet the sector’s needs, including the capability to handle real-time alert generation covering billions of messages per day, 24×7.
- Global Trends: Schwab noted that regulation in the EU is just the beginning, with new regulatory guidelines expected in jurisdictions worldwide in the coming years.
The report underscores the critical need for firms involved in crypto trading to prioritize MiCA compliance. As the deadline approaches, the industry must navigate challenges related to compliance costs, qualified personnel, and vendor selection. Strategic partnerships and investments in sophisticated surveillance systems will be crucial for firms to meet regulatory standards and maintain market integrity.
This collaborative effort between NexeraID and Galileo Protocol, alongside insights from Eventus and Acuiti, exemplifies how the industry can address these challenges, fostering a secure and compliant environment for digital asset trading.
Source: financemagnates.com
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Blockchain
DLA Piper’s crypto tokenization engine TOKO relaunches as Scintilla
Following a management buy-out by the management team at TOKO FZE, the business has been rebranded as Scintilla, the revolutionary platform providing on-chain solutions and services to make investments more inclusive, accessible, and efficient. Having been developed within DLA Piper’s Law& innovation portfolio, TOKO – now Scintilla has a fresh brand identity, new leadership, and innovative product offerings. Scintilla is set to reshape the future of finance by enabling businesses to unlock the power of blockchain technology across various asset classes, with DLA Piper remaining as a minority shareholder.
Regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), Scintilla is one of the first digital asset companies to gain full market licenses, marking a significant milestone in the sector’s landscape. Being a regulated entity underscores Scintilla’s commitment to the highest standards of compliance and security while pioneering new solutions for tokenization in the global market.
Innovating Finance Through Tokenization
Scintilla offers a comprehensive suite of tokenization services designed to bring liquidity, transparency, and efficiency to traditional finance sectors. From tokenized financial products, and real estate all the way to new legal funding products, Scintilla’s digital asset solutions enable clients to tokenize assets that were previously inaccessible to investors or illiquid.
Scintilla’s services include:
Advisory Services: The gateway to successful market entry. From initial opportunity assessment to strategic development of game-changing tokenization-based solutions.
Use Case Development: Bringing products to life. From initial POC development and iteration towards MVP all the way through to the full market launch.
Broker/Dealer Services: Creating new markets. Regulated primary market trading, ensuring the highest levels of trust and security within the tokenization space.
Exchange Services: Universal participation. Seamless, secure secondary trading of tokenized assets, with industry-leading technology and compliance standards.
Scintilla is uniquely positioned to capitalize on the confluence of Dubai’s world-leading regulatory environment, cutting-edge technology, and the burgeoning RWA market.
A New Era for Scintilla
The relaunch of Scintilla represents more than just a rebranding—it signifies the company’s growing ambition to lead in the digital asset space. With an expanded team of industry experts, including continuing Board representation from DLA Piper, and a clear strategic vision, Scintilla is set to drive the adoption of tokenization in traditional financial markets.
“Our relaunch marks the beginning of an exciting new chapter for Scintilla and the wider industry. We are committed to pushing the boundaries of what is possible in digital finance while ensuring our solutions are underpinned by strong regulatory compliance,” said Tim Popplewell, CEO of Scintilla. “With our new suite of products and services, we are empowering investors to transform the way they manage and access value.”
Jean-Pierre Douglas-Henry, Managing Director, Sustainability and Resilience, DLA Piper added: “Innovation is a key strand in our business strategy. As our business focuses on developing and nurturing innovations that add significant value to our clients through our Law& innovation program, it is fantastic to see this solution spun out into the thriving digital asset space for the next stage of its growth and development.”
The post DLA Piper’s crypto tokenization engine TOKO relaunches as Scintilla appeared first on HIPTHER Alerts.
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