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
The post 2025 EU Crypto Landscape: MiCAR, TRF, and DORA Explained appeared first on HIPTHER Alerts.
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Blockchain
Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin)
Blockchain technology continues to drive innovation across industries, reshaping finance, infrastructure, and philanthropy. Today’s news roundup explores exciting developments in blockchain ETFs, tokenization funding, quantum-resistant chips, public blockchain initiatives, and impactful social projects. Here’s a deep dive into the latest blockchain headlines:
BlackRock ETF Embraces Blockchain with First Muni Bond Purchase
BlackRock’s blockchain-focused ETF has made its first foray into municipal bonds, signaling increased confidence in integrating blockchain technology with traditional finance. The ETF’s strategic investment demonstrates how blockchain can enhance transparency and efficiency in bond markets.
By tokenizing municipal bonds, BlackRock aims to simplify trading and settlement processes while reducing associated costs. This development underscores the growing role of blockchain in transforming financial instruments and fostering greater market accessibility.
Source: Yahoo Finance
Plume Secures Funding for Tokenization Platform
Blockchain fintech company Plume has raised significant funding to advance its tokenization platform. The company’s innovative approach enables businesses to convert real-world assets into digital tokens, streamlining asset management and unlocking liquidity.
Tokenization is rapidly gaining traction as a game-changer in sectors such as real estate, art, and commodities. Plume’s success reflects a broader trend of investment in blockchain solutions that bridge the gap between traditional assets and decentralized technologies.
Source: Fortune
SEALSQ and Hedera Partner for Quantum-Resistant Blockchain Chips
SEALSQ and Hedera have announced a groundbreaking collaboration to develop quantum-resistant chips designed to secure blockchain infrastructure. These advanced chips will provide robust protection against future quantum computing threats, ensuring the integrity of blockchain networks.
As quantum computing capabilities evolve, safeguarding blockchain ecosystems becomes increasingly critical. This partnership highlights the importance of proactive measures in maintaining the resilience and trustworthiness of decentralized systems.
Source: The Quantum Insider
Deutsche Bank’s Public, Permissioned Blockchain Initiative
Deutsche Bank’s Layer 2 blockchain solution is set to go public and operate as a permissioned network, according to its tech partner. This initiative aims to strike a balance between accessibility and security, leveraging blockchain to streamline financial services and enhance operational efficiency.
The decision to adopt a public, permissioned model reflects a growing trend among enterprises seeking to harness the benefits of decentralization while maintaining control over sensitive data. Deutsche Bank’s approach could serve as a blueprint for other financial institutions exploring blockchain adoption.
Source: CoinDesk
KuCoin’s “Light Up Africa” Initiative Brings Hope to Thousands
Cryptocurrency exchange KuCoin has made a significant impact through its “Light Up Africa” donation ceremony in Ghana, benefiting 36,000 children across the continent. The initiative combines blockchain technology with philanthropy to address energy poverty and support education.
By leveraging blockchain for transparency in charitable contributions, KuCoin sets an example of how the crypto industry can drive meaningful social change. The project demonstrates the potential of blockchain to empower communities and foster sustainable development.
Source: PR Newswire
Industry Implications and Key Takeaways
Today’s developments highlight the transformative potential of blockchain across multiple domains:
- Integration with Traditional Finance: BlackRock’s ETF underscores the synergy between blockchain and established financial systems.
- Tokenization Trends: Plume’s funding success reflects the growing demand for digital asset solutions.
- Quantum-Resistant Technologies: SEALSQ and Hedera’s partnership addresses emerging cybersecurity challenges.
- Enterprise Blockchain Adoption: Deutsche Bank’s public, permissioned network showcases the adaptability of blockchain in financial services.
- Social Impact: KuCoin’s philanthropic efforts illustrate blockchain’s capacity to drive positive societal outcomes.
The post Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin) appeared first on News, Events, Advertising Options.
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