EU Regulator Introduces New Rules for ForeiGNcrypto Companies
European Securities and Markets Authority (ESMA) published drafted regulatory guidelines under the MICA framework.
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European Securities and Markets Authority (ESMA) published drafted regulatory guidelines under the MICA framework.
The regulator introduced two papers; one of which discusses the financial category for the qualification of crypto assets, and the other addresses how third-country companies will operate in the EU.
ESMA states that the operations of foreiGNcrypto companies are strictly limited under MICA, with some exceptions of client-initiated activities. The regulatory mentions this exception will not be common and cannot be used to bypass MICA regulations.
As for the classification of crypto assets, MICA will divide them into three groups: utility tokens, currency/payment tokens and financial/investment/security tokens. The paper states classification of a crypto asset will be done based on the specific features, design and rights attached to this crypto asset.
In the announcement, ESMA invites stakeholders to introduce their comments by April 29.
The EU's crypto regulatory framework MICA, which stands for Markets in Crypto Assets Regulation, was entered into force last June. It is supposed to take full effect in December 2024.
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