European Union officials agreed to the Markets in Crypto-Property (MiCA) regulation on Thursday, putting cryptocurrencies, issuers and service suppliers under the EU’s first regulatory framework for the marketplace. The rules are envisioned to kick in as early as 2024.
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- All stablecoins will fall less than the supervision of the European Banking Authority (EBA) and issuers have to be situated in the EU.
- Stablecoin issuers are to keep a adequate liquidity reserve to deliver holders with commission-free redemptions, in accordance to the EU’s landmark law.
- Stablecoins have been at the centre of notice for international regulators due to the fact the Terra-UST depegging incident wiped out billions of pounds in price savings and investments.
- Crypto support companies will be expected to establish and report transactions higher than 1,000 euros (US$1,045) involving own cryptocurrency wallets.
- MiCA also will need crypto corporations to disclose facts on their environmental and local climate footprint.
- The European Commission will want to evaluate and develop a regulatory regime for non-fungible tokens (NFTs) in 18 months, as they have been excluded from the scope of MiCA.
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