Blockchain
2025 EU Crypto Landscape: MiCAR, TRF, and DORA Explained
The European Union is making significant strides toward comprehensive crypto regulation, with the Markets in Crypto-Assets Regulation (MiCAR) emerging as a pivotal framework. However, the full impact of MiCAR, along with other key regulations like the Transfer of Funds Regulation (TRF) and the Digital Operational Resilience Act (DORA), will start to unfold in 2025. Mihhail Sherle, Head of Legal Practice at the fintech law firm Gofaizen & Sherle, provides insights into these forthcoming changes and their implications for the EU crypto market.
Understanding MiCAR
Crypto companies have generally acclimated to the basic frameworks of MiCAR. However, its application will vary across EU member states, each of which will implement its local legislative acts under MiCAR’s umbrella. While MiCAR aims to standardize regulatory principles for crypto companies across the EU, these unique legislative frameworks will lead to variations in its implementation and enforcement.
The Transfer of Funds Regulation (TRF)
The updated TRF, effective June 9, 2023, extends the requirement to provide detailed information on the originators and beneficiaries of crypto-asset transfers. This is in line with the Financial Action Taskforce (FATF)’s guidelines and aims to enhance transparency and traceability in crypto transactions.
Crypto companies must now implement frameworks to comply with these requirements, which include transmitting detailed information—such as the originator’s name, distributed ledger address, and other identifiers—alongside the transfer. This information must be securely communicated to the recipient’s financial institution or virtual asset service provider (VASP). Furthermore, the TRF mandates procedures for detecting and addressing incomplete information, necessitating advanced software, blockchain analytics, and robust compliance teams. Full compliance with TRF and MiCAR is expected by the end of 2024.
The Digital Operational Resilience Act (DORA)
DORA is another crucial regulation targeting a wide range of financial entities, including crypto companies and Crypto-Asset Service Providers (CASPs). It aims to ensure these entities are equipped to handle information and communication technology (ICT)-related risks, thus enhancing the stability and resilience of the financial system. DORA mandates robust ICT risk management practices, regular testing, and cooperation with regulators and peers to protect against cyberattacks and other disruptions. Enforcement of DORA is expected to begin in January 2025.
Practical Challenges and Future Outlook
The practical implementation of these regulations will pose challenges, particularly due to local variations across EU countries. Differences in the interpretation of rules, such as the Travel Rule, can lead to legal uncertainties that companies must navigate.
Currently, crypto companies and VASPs are preparing for MiCAR’s implementation. However, the real impact will be seen in 2025, as each country’s regulators begin enforcing the new regulations. Key issues include whether regulators will take a market-friendly approach and how specific areas like Portfolio Management will be governed. The technological neutrality of MiCAR, avoiding restrictions at the code and technology levels, will also be closely watched.
The comprehensive regulatory framework coming into effect in 2025 marks the full integration of crypto companies into the EU financial system. This new regulatory landscape will drive innovation, establish a robust framework for sustainable growth, and emphasize the growing importance of crypto infrastructure within traditional finance. The increased transparency and stricter regulations will shape the future of the crypto market in the EU.
Source: news.bitcoin.com
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2024-DNA Fund, the Financial Institution of the future in high-ticket emerging tech and web3 investments, has announced its acquisition of Coral Capital Holdings LLC, an established investment management firm that has previously managed millions in the DNA founders’ personal funds.
As early-stage investors in established Web3 brands and founders of some of the sector’s most notable projects, DNA and its founders have invested in or founded projects such as Tether, EOS, Mastercoin, Bancor, and Hedera Hashgraph. The acquisition will see the DNA Fund manage an additional AUM of over $50 million, which includes Coral’s high-yielde hedge funds and venture funds focused on DeFi, Al, blockchain, and other emerging technology sectors. Some of Coral’s top-performing investments include Near Protocol and Atmos Labs.
Thomas L. McLaughlin, Coral’s Chief Investment Officer, will continue in his role, managing the funds with a unique focus and strategy aimed at maximizing investor returns.
Regarding the acquisition, Christopher Miglino, CEO of DNA Fund, said. “By bringing Coral Capital under our umbrella, we are not only expanding our investment capabilities but also enhancing our ability to offer unique, high-growth opportunities to our clients. Our combined expertise allows us to navigate the complexities of the digital asset landscape and continue delivering value to our investors.”
Thomas L. McLaughlin, CIO of Coral Capital Holdings, added, “Joining forces with DNA Fund is an exciting new chapter for Coral. Our shared vision for leveraging technology to drive financial growth is perfectly aligned. Together, we are set to redefine what’s possible in digital asset investments and deliver superior results for our investors.”
Since its inception in 2021, Coral has delivered consistent returns with innovative strategies, delivering high multiples on the benchmark of the overall market cap of digital assets. Coral’s Flagship fund, initially started as a market-neutral vehicle, was rebranded in 2023 as a discretionary liquid token, surviving a number of high-volatility events, including FTX and Terra.
With a 61.6% return (net of fees) and a maximum annual drawdown of only 11.6% in FY 2022. these funds have outperformed the broader digital asset market. Over a similar period, Bitcoin returned 36.7%.
Through this acquisition, DNA Fund also aims to capitalize on the growing interest from institutional investors and expand into several new verticals over the coming year, including a Bitcoin & Ether Yield Fund, as well as more speculative funds focused on Al, memecoins and microcaps.
The post DNA Fund Acquires Coral Capital; Adds $50M AUM in Web3 & Emerging Tech appeared first on HIPTHER Alerts.
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