The cryptocurrency business is facing a crucial period, needing to prepare for several new rules, with the Markets in Crypto-Assets (MiCA) regulation being a key focus. As of June 30, 2024, the initial regulations regarding stablecoins have taken effect, and by December, broader regulations for crypto service providers will be operational.

Authorities, including the European Banking Authority (EBA), are bolstering their ranks to manage these new regulations. The EBA is hiring specialists to oversee various aspects of the crypto market, including DeFi markets, crypto asset classification, and the application of cybersecurity and crypto regulations. These positions reflect the significant impact MiCA will have, particularly in enforcing standards regarding governance, custody, and reserve requirements for stablecoins.

All entities in the crypto market must ensure compliance with these new regulations. Any stablecoins that do not meet MiCA’s standards will be removed from EU markets. The EBA and other regulatory bodies are committed to providing clarity and support to help businesses navigate these changes. Having spent years developing MiCA, the EBA is now responsible for ensuring that national authorities adhere to these final guidelines and for influencing any future laws related to DeFi. Although MiCA does not currently cover decentralized protocols, the European Commission will examine DeFi to determine if regulation is necessary, with the EBA monitoring the market and potentially providing findings to the Commission.

Crypto firms are bracing for challenges as they prepare for these new rules. The urgency of this preparation cannot be overstated. One of the EBA’s roles includes overseeing the Digital Operational Resilience Act, which mandates stricter tech security tests for financial institutions, including crypto service providers, thereby increasing regulatory expenses for businesses. Companies must comply with the Digital Operational Resilience Act by January, emphasizing the need for immediate action.

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In response to these regulations, Bitstamp announced it will remove from its platform any stablecoins priced in euros that do not adhere to MiCA, such as the EUR-denominated stablecoin EURT. The exchange will not list new EMTs that fail to meet MiCA requirements nor engage in any marketing of them. Binance also warned its users of disruptions in stablecoins, stating it will implement certain restrictions for EEA users and offer alternatives with regulated stablecoins or other crypto assets.

This period of regulatory transformation is critical for the cryptocurrency business, with MiCA being a central focus. Compliance with these regulations is essential, highlighting the importance of preparation and adaptation to the evolving regulatory landscape.

Source: blockhead.co

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