Post Antonio Lanotte, Tax Technology Committee – CFE Brussels advisory boards – Blockchain for Europe and Tommaso Astazi, European Union Head of Regulatory Affairs Blockchain for Europe
MiCA regulation (Crypto asset markets), the European regulation containing important provisions on the subject of community organization of the so-called “Crypto Origins“, recently completed in its final version. The final text, at this stage, is ready for approval by the European Parliament’s Committee on Economic and Monetary Affairs on October 10, to be formally ratified by European institutions at the end of October.
The MiCA regulation will first be translated into all official languages of the European Union, and then published in the European Official Journal by the first quarter of 2023 (Q1-2023). The new rules will be applied from 18 months, and this stage of implementation, after the date of their entry into force, and thus starting from mid-2024. stablecoins Referring to a “basket of currencies”) and Chapter Four (dated stablecoins with electronic money, Electronic money codes) instead already 12 months after entry into force, that is, starting from the first quarter of 2024 (Q1 – 2024).
Harmonized requirements on crypto assets
The MiCA Regulation sets out fully harmonized requirements for Member States, in particular towards those who, in the presence of a specific authorization and/or authorization, intend to provide services related to encrypted assets within the European Union and thus throughout the single market.
The regulation is intended to replace the existing current national regulatory frameworks with regard to crypto assets, actually going to introduce specific rules regarding the so-called “stablecoinsIt is a digital currency pegged to a fixed reserve asset such as the US dollar, the euro or a “goods” Like gold, this peg aims to reduce its volatility. In the regulation, the stablecoins Called “The referenced origin symbol‘, when the value indicates a “basket of coins”, or “electronic money codes” When it is considered electronic money because it is pegged to an official currency.
The regulation contains 126 articles mainly related to offer and marketing crypto assets, Issuance Tokens referred to as assets Based on electronic money codes, License and operating conditions for service providers crypto assets, Prevent abuse of dominant positions in the market encrypted assets and finally the increasingly critical role of competent authorities such as ESMA – the European Financial Instruments and Markets Authority – and EBA – the European Banking Authority.
Among the main innovations set forth in the MiCA regulation, we see first of all a clear definition of encrypted assets And the consequent distinction fromTokens referred to as assets(ARTs) (backed by a basket of currencies) andElectronic money codes(EMTs). Then a distinction is made among the others.”encrypted assets“, id k”The digital representation of value or rights, which can be transferred and stored electronically, using a distributed ledger or similar technologyAnd the First example Blockchain“. a “utility codesInstead, it is defined as a type of encrypted assets which aims to provide digital access to a good or service, made available on a DLT – digital ledger technology (An example of a DLT is blockchain) and is only accepted by the issuer of that token.
Who is exempt from the white paper?
There are countless other innovations introduced by MiCA Regulation with special regard to those innovations (for example, Crypto asset service provider – CASPs) who intend, through an appropriate license/authorization, to provide services related to crypto assets, Among others: 1. Publication requirement”white sheets(The Minor Issuers e utility codes exempt) with the aim of informing and protecting investors; 2. Embed in white sheets information about the project, the bidder, the risks, as well as the environmental impact of the DLT technology used; 3. Notification white sheets to the appropriate authority at least 20 days before it is published; 4. Update white sheets in the event of major changes; 5. Act with honesty and professional diligence.
Conflict of interest and non-misleading information
6. Prevent, identify, avoid and promptly report conflicts of interest; 7. Display holders encrypted assets the right of withdrawal, giving them a period of 14 working days to collect the purchase order without incurring commissions; 8. Acting in the interest of the holders encrypted assets; 9. Putting in place effective arrangements for monitoring and protecting funds raised during the offer. 10. On display encrypted assets Canceled for any reason, the bidder will guarantee that the money collected by the buyers will be returned to them within 25 days from the date of issue; 11. Finally, that any communication marketing From encrypted assets It must be clearly defined, contain correct, clear and not misleading information and the relevant authority must be notified.
Other important provisions relate to the transitional period that will allow entities already authorized to provide services encrypted assets Through the existing legislation in the Member States of the Union to be able to continue to provide the same services for a period of 18 months from the date of entry into force of the rules, before obtaining a new license based on the new rules established by the MiCA regulation.
In conclusion, although the regulation will finally align national rules on crypto assets and related services, there are some points that will need to be clarified in the coming months.
NFTs and Decentralized Finance
For example, the final text unfortunately does not provide a well-defined position on i Non-fungible tokens – NFTs. An NFT is a unique, non-transferable unit of data that can be sold, traded, and held in a digital ledger known as a digital ledger Blockchain Basically a goddess symbols Crypto that really embodies in a digital asset in general. The situation is equally ambiguous with regard to the so-called Decentralized Finance – DeFI o Decentralized finance, i.e. innovative technology-based financial services blockchain. To gain more clarity regarding the regulation of these two distinct phenomena, it will be necessary to await the issuance of subsequent Community Directives, Guidelines and Regulatory Technical Standards (RTS) issued by the European Commission and other competent bodies, such as EBA and ESMA.