CySEC Seeks Market Views on MiCA Fees and Reporting Requirements

2024-06-26T15: 12: 26.318+02: 00

• MiCA has introduced new categories of entities under CySEC’s supervision, including offerors of crypto-assets.
• CySEC has invited stakeholders to give their views by July 17, 2024.

Cyprus Securities and Exchange Commission (CySEC) has
launched a consultation to gather market views on the proposed fees and
reporting requirements under the Markets in Crypto-Assets Regulation (MiCA).
This initiative invites stakeholders to give their opinions and influence the
future framework, with responses due by July 17, 2024.

MiCA aims to establish a unified regulatory framework
for crypto-assets across Europe. It targets crypto-assets that are fungible but
not classified as financial instruments. The regulation, effective from May 31,
2023, seeks to create clarity and consistency within the crypto market.

The regulation categorizes crypto-assets into three
main types: asset-referenced tokens (ARTs), electronic money tokens, and other crypto-assets.
Besides that, the MiCA has introduced new categories of entities that will be under
the supervision of CySEC.

These include the offerors of crypto-assets, issuers
of ARTs, excluding credit institutions, entities issuing
asset-referenced tokens, and crypto-asset service providers.

Already, the MiCA regulations have led to notable changes in the industry. This month, Binance announced plans to make changes to ensure compliance in its trading on rewards platforms. Under the MiCA framework, only regulated firms can
issue and offer stablecoins. Currently, many existing stablecoins on Binance do
not meet these criteria and will be designated as unauthorized stablecoins, the
cryptocurrency exchange said.

MiCA Takes Effect

Meanwhile, the ESMA has laid out a comprehensive plan
to address crypto-related risks and establish a regulatory framework for the
digital asset space under MiCA. These measures, encompassing authorization,
governance, conflict resolution, and complaint handling procedures, seek to strengthen
the crypto ecosystem.

The first package, set to launch in July 2023, regards
mandates, such as notification content, application for authorization, and complaint handling procedures.

Already, MiCA is bearing positive results in the
digital asset space. According to a report by global identity intelligence
company AU10TIX, fraudulent activities have moved away from the cryptocurrency
space, marking a significant decline of 51% in attacks attributed to the
implementation of the Market in Crypto Asset (MiCA) regulation .

Additionally, the report disclosed how regulatory crackdowns in the digital asset space are redirecting fraudsters toward the payments sector. The report highlighted a 56% growth in fraud in the payments sector, boosted by factors like increased digital transaction volumes in the Asia Pacific region and the economic recovery in North America.

Cyprus Securities and Exchange Commission (CySEC) has
launched a consultation to gather market views on the proposed fees and
reporting requirements under the Markets in Crypto-Assets Regulation (MiCA).
This initiative invites stakeholders to give their opinions and influence the
future framework, with responses due by July 17, 2024.

MiCA aims to establish a unified regulatory framework
for crypto-assets across Europe. It targets crypto-assets that are fungible but
not classified as financial instruments. The regulation, effective from May 31,
2023, seeks to create clarity and consistency within the crypto market.

The regulation categorizes crypto-assets into three
main types: asset-referenced tokens (ARTs), electronic money tokens, and other crypto-assets.
Besides that, the MiCA has introduced new categories of entities that will be under
the supervision of CySEC.

These include the offerors of crypto-assets, issuers
of ARTs, excluding credit institutions, entities issuing
asset-referenced tokens, and crypto-asset service providers.

Already, the MiCA regulations have led to notable changes in the industry. This month, Binance announced plans to make changes to ensure compliance in its trading on rewards platforms. Under the MiCA framework, only regulated firms can
issue and offer stablecoins. Currently, many existing stablecoins on Binance do
not meet these criteria and will be designated as unauthorized stablecoins, the
cryptocurrency exchange said.

MiCA Takes Effect

Meanwhile, the ESMA has laid out a comprehensive plan
to address crypto-related risks and establish a regulatory framework for the
digital asset space under MiCA. These measures, encompassing authorization,
governance, conflict resolution, and complaint handling procedures, seek to strengthen
the crypto ecosystem.

The first package, set to launch in July 2023, regards
mandates, such as notification content, application for authorization, and complaint handling procedures.

Already, MiCA is bearing positive results in the
digital asset space. According to a report by global identity intelligence
company AU10TIX, fraudulent activities have moved away from the cryptocurrency
space, marking a significant decline of 51% in attacks attributed to the
implementation of the Market in Crypto Asset (MiCA) regulation .

Additionally, the report disclosed how regulatory crackdowns in the digital asset space are redirecting fraudsters toward the payments sector. The report highlighted a 56% growth in fraud in the payments sector, boosted by factors like increased digital transaction volumes in the Asia Pacific region and the economic recovery in North America.