The European Banking Authority Chair emphasized the diversification of stablecoin reserves for robust risk management.- He also stated that while the EU’s MiCA regulations would take effect in 2024, crypto exchanges should begin adapting to these developments right away.The European Banking Authority (EBA) Chair, José Manuel Campa, has stated that the impending European Union laws governing stablecoins will focus on ensuring issuers maintain diverse reserves, handle conflicts of interest, and do not entangle other exchanges when gone berserk.Campa made these recommendations in an article he wrote for the Eurofi magazine.
He wrote that while the EU’s Markets in Crypto Assets Rules (MiCA) are slated to take effect in 2024, crypto exchanges should begin adapting to these developments right away.MiCA requires stablecoin issuers to have sufficient reserves to manage volatility, and the EBA will ensure that these entities maintain reserves that take into account the deposit component’s diversification.EBA will play a major role in MiCA’s implementation by drafting subsidiary legislation.While the law has not yet been legally enacted, the parameters of MiCA are now well-known and crypto exchanges should update their functions to adapt to the new developments to guarantee appropriate risk management, suggested Campa.
Campa emphasized the necessity of stablecoin issuers avoiding conflicts of interest and mapping relationships to custodians and trading exchanges to prevent risks from entrenching the entire crypto ecosystem.Multiple crypto failures make regulators cautious The drastic collapse of algorithmic stablecoin TerraUSD in May 2022 drew the attention of regulators.
The authorities are now working on how to control cryptocurrencies that are linked to the value of fiat money or other assets such as gold.The collapse of FTX in November 2022 and the ensuing global crypto crisis also made regulators aware of the dangers posed by such large crypto corporations.Campa stressed that risk management is not a one-way street and regulatory bodies should implement their policies at a multilateral level.As a result, in addition to regulating and overseeing the crypto asset industry, the EBA must strengthen the framework for regulating other sections of the financial system, the banking sector in particular.Leave a Reply [Cancel reply](/news/eu-banking-regulator-suggests-the-following-to-reduce-risk-in-crypto-sector/#respond) Leave a Reply Officials have revealed that Ukraine intends to implement the crypto market rules approved by the European Parliament.While the government is already moving in that direction, the tax service has issued a clarification regarding the taxation of income resulting from cryptocurrency transactions.
Ukraine Set to Incorporate EU Crypto Regulations Into National Law A regional leader in crypto adoption, Ukraine now plans to follow in the footsteps of the global leader in crypto regulation, the European Union.Statements in Kyiv have indicated that Ukrainian authorities are going to incorporate the new EU norms into their country’s legal framework.On Thursday, European lawmakers gave their final approval to the Markets in Crypto Assets (MiCA) package.It is the world’s first comprehensive attempt to regulate the crypto space.It introduces licensing for crypto service providers and mechanisms for investor protection.
“This is a truly historic event, I am sure Ukraine will be one of the first countries to implement this regulation into national legislation,” commented Yuriy Boyko, member of the National Securities and Stock Market Commission of Ukraine (NSSMC).Boyko also said that draft provisions to achieve that are almost ready and officials will soon start talks with the main stakeholders.“The NSSMC, together with its partners, is actively working on the launch of the virtual assets market in Ukraine, and the MiCA regulation was taken as the basis,” he emphasized.
“Together with our colleagues from the NSSMC, we are already working on the implementation of some of the MiCA provisions so that crypto assets are legal in Ukraine as well,” confirmed Yaroslav Zheleznyak, member of Ukraine’s parliament, who took to Telegram to express his excitement about the regulatory development.Lawmakers in Ukraine, a candidate for EU membership, first adopted a draft law “On Virtual Assets” in September 2021, but the bill was returned by President Volodymyr Zelenskyy, revised in accordance with his recommendations and passed again in February 2022, before he signed it into law.It should enter into force after deputies in the Verkhovna Rada approve relevant amendments to the Tax Code.While the nation’s crypto tax rules are yet to be introduced, the Lviv Office of the State Tax Service of Ukraine has taken the matter in its own hands and clarified the taxation of crypto-related income for private individuals.
“Income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income,” the regional tax administration explained in a notice published this month.Tags in this story Crypto, crypto assets, Crypto markets, Cryptocurrencies, Cryptocurrency, EU, EU Parliament, european, European Parliament, European Union, Law, Legislation, MiCA, package, Regulation, Regulations, rules, Ukraine, ukrainian, virtual assets Do you expect other non-EU countries in the region to introduce the MiCA rules in their jurisdictions? Tell us in the comments section below.
Lubomir Tassev Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.Image Credits: Shutterstock, Pixabay, Wiki Commons European Union Ripple execs praise EU’s move to approve MiCA legislation – Ripple executives praised EU’s move to approve MiCA legislation as the firm is struggling to get regulatory clarity in the U.S.- Susan Friedman, International Policy Counsel at Ripple, said that the company is looking forward to building and growing in Europe.The European Union has approved the Markets in Crypto-Assets (MiCA) legislation, the first comprehensive set of rules to cater to the crypto industry in the continent.The development has found an admirer in Ripple Labs, which is struggling to get clarity in the United States as it continues to battle the Securities and Exchange Commission (SEC).
Susan Friedman, International Policy Counsel at Ripple, praised the EU’s recent crypto move on Twitter.
She stated that the U.S.is still focusing on enforcement instead of clarity.European lawmakers, on the other hand, have taken a big leap forward.While the US continues to focus on enforcement instead of clarity, the EU has taken a big leap forward with a sensible, progressive approach to #crypto regulation.
We look forward to building and growing in the European marketplace! 🇪🇺 https://t.co/0NW8vchHxA — Susan Friedman (@ss_friedman) April 20, 2023 Ripple’s Policy Director for EMEA, Andrew Whitworth, dubbed it a “landmark moment” for the global crypto business.However, he stated that the job is not yet finished.He said it is now up to the European Supervisory Authorities to develop firm-specific norms and regulations.Europe to make way for clear crypto regulation through MiCA The European Parliament voted 517-38 in favor of MiCA.The measure will now be put to a final official vote in the EU Council on 16 May.
After being published in the EU’s Official Journal, the law will go into force for stablecoin issuers in June 2024 and for all other crypto-asset service providers in December 2024.With MiCA, the EU aims to protect consumers and to allow companies to operate on an EU-wide basis.It also aims to provide legal certainty for companies and to establish a leadership role in global crypto regulation.This comprehensive framework provides businesses with a clear standard for various services, such as token issuance, exchange, and custody, allowing for fair competition and innovation.
The EU is hoping to become the next global hub for crypto projects as it embraces regulatory clarity.It has a large crypto market of 450 million consumers.The European Parliament also voted 529-29 in favor of a separate law known as the Transfer of Funds regulation.
This requires crypto operators to identify their customers in a bid to halt money laundering.- Polygon’s letter was aimed at clarifying the potential negative consequences of imposing a requirement for “safe termination or interruption.” – MATIC’s weighted sentiments declined, but demand in the futures market went up.On 17 April, Polygon [MATIC] sent an open letter regarding Article 30 to the Representatives of the European Parliament, the Council of the European Union, and the European Commission.1/ 🚨Today @0xPolygonLabs published an open letter to the EU on Art.
30 of the #DataAct, which could have serious consequences for permissionless smart contracts.@Ledger has joined in proposing amendments to narrow Art.30 to protect decentralized software development.Read 👇 pic.twitter.com/AZHGCm14sQ — Rebecca Rettig (@RebeccaRettig1) April 17, 2023 Read Polygon’s [MATIC] Price Prediction 2023-24 Understanding Polygon’s motive Let’s first understand what Article 30 is.
Article 30 of the EU General Data Protection Regulation (GDPR) is a law that: Requires organizations that process personal data to maintain a record of their processing activities.Article 30 imposes requirements on: (A) party offering smart contracts in the context of an agreement to make data available.As all smart contracts share some sort of data, the proposed law is over-broad and likely unenforceable in decentralized systems.Polygon drafted the open letter to clarify the scope and intent of Article 30 to ensure it accounts for how smart contracts operate.
It was also aimed at clarifying the potential negative consequences of imposing a requirement for “safe termination or interruption” of such smart contracts in permissionless systems.Polygon’s suggestions Polygon further suggested changes to narrow down the scope of Article 30.The intention behind it was that the article only affected permissioned smart contract-based systems that are owned and run by identifiable natural persons or corporate entities that have signed customary contractual agreements for the sharing of “personal data,” as that term is used in the Data Act.The letter mentioned: We offer suggested revisions to certain language of Art.30 to ensure the final text reflects the EU’s objectives for this provision—namely, removing barriers to the development of the European data economy in compliance with European rules and fully respecting European values, and in line with the mission to reduce the digital divide so that everyone benefits from these opportunities.According to the letter, Polygon wants to make sure that software developers worldwide, including those in the European Union, can keep innovating with smart contracts.
A quick look at MATIC While Polygon drafted the letter, its native token witnessed a price correction.MATIC’s value declined by over 1% in the last 24 hours.
According to CoinMarketCap, at the time of writing, it was trading at $1.17 with a market capitalization of more than $10.7 billion.Is your portfolio green? Check the Polygon Profit Calculator MATIC is in demand in the futures market A look at Santiment’s chart revealed that sentiments around MATIC have turned negative lately, as evident from its weighted sentiment.Nonetheless, the increase in the Binance funding rate indicated that MATIC’s demand in the derivatives market was high.CryptoQuant’s data also pointed out that MATIC’s exchange reserve was decreasing, which was a positive signal as it suggested a decline in selling pressure.Top posts European Union6 mins ago The European Banking Authority Chair emphasized the diversification of stablecoin reserves for robust risk management.He also stated that while…
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