Unraveling MiCA and the New Regulations Threatening Crypto in Europe

Epicenter
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Automatic TRANSCRIPT

That's that's enough about France. Let's because our list get bored with with all the stuff that's very specific to France. But let's broaden it a little bit and talk about Europe and where where there's a lot at stake here, and this is GonNa be the bulk of conversation. We're talking, of course, the digital finance package which was. Drafted and released in late September. So just for context, what are the high level principles of cryptocurrency regulation in Europe one of the major frameworks that cryptocurrencies and cryptocurrency actors fall under in EU? Okay. There's Hugh big ways of regulating cryptos in your roof basically we can shit. Yeah. Two a way of regulating the first one is considering the that crypto assets are a securities. All of them and make them full into the financial regulation in general. So that's the approach taken by Germany and a few other countries. So if you are operating his. Exchange in Germany than you have to be a regulated. Financial Exchange that that's a that's as simple as that. So. That's the first the first way of doing it, which is quite easy to do of course, but can lead to some inefficiencies. Patient. Because the financial regulation is is very strong and very difficult to apply for a small actors like And then you have the countries that try to create a dedicated from Fokker to us. Already mentioned France of course did this but you have. Your mountain you're. They'll have like a crypto license. where basically you you described project and you you have specific allegation. That are adapted to the crypto asset and that may mentioned for example, custody this Kanye to the DESTIG- sector. So these are bespoke regimes that are created by national governments in order to help players and startups in the crypto space get started without all the encumbrances and red tape and everything of a very. Complex Regulatory Framework as exists in the financial space. That's a the LAKME. Exactly. And then on top of this. Irrespective of the of the local regulation, there's an obligation for each member state to. Put into place regulations on Koa mill for all the all the exchanges that David with Euro and all the custodians that's from a you regulation. So needs to be apply everywhere in the. And see the animals five. Directive. CRYPTOCURRENCY startups in Europe are regulated at a level by Amil Five, which implies at every exchange or custodian conducts L. Kyc on their customers but other than. Other than this specific. know-your-customer regulation there hasn't been until now a framework at the level to regulate things like. You know specifically how tokens are listed by exchanges or Stable, coins or things like ICO's until now, these have mostly been regulated at a local level. Executive okay. So let's let's now jump into this Israel finance package. What. Is this digital finance package that was released by the Commission and? How does it change fundamentally this this situation that we're currently. Yeah. So the digital finance package, it's a big badge very, very big. Named suggests it converse everything digital and finance, and the objective of the digital finance package is basically to make the EU competitive you know Narita where the financing finance is increasingly digitize so very broad and diverse. That's a lot of different regulations that covers a lot of different areas. But of course, what interests us is, if you QBC's of this regulation that will concern specifically the crypt assets industry namely the Mecam regime, a markets data sets. And then at the pilots regime for the security tokens, those are the two components that are specifically targeted to drip to assets in rural. So basically assets registered on a blockchain and. The idea behind this dysregulation is to consider the criticism very specific new as clubs. So it's quite zooming out to the approach that was taken by friends, for example, that the really considering the group that as as a different industry as the other ones and to create a specific set of groups. An spoke regime that will apply to those actors and to the staff teaching. So that that's what will happen and that's that's what the the regime sets since motion. Every single crypto assets ACTA in euro will be regulated by camp. And everything will issue of security token gay news, the pipe between, which is very specific some kind of sandbox Okay. So, when you say every single crypto currency actor in Europe will be regulated under Meka. I think we're GONNA spend most of this time talking about Meka because the one that concerns defy more so than the the pilot regime, but we'll talk about that but. When you say every single actor who you talking about here give us some examples of like who are the people who are the companies that are getting affected and regulated by this. Broadly speaking meka is the creating a new category vectors. The Cold Crypto said service provider. So shocked providing service whispered doesn't you fall into this category and it's very inspired from The financial regulation. So basically, the crypto asset service providers, the custodians. Trading Platforms Exchange execution of older reception and transmission of all those of us. It's so if you look at the different financial services in Mifid, which is the financial regulation, the Euro. Just, a cookie based basically adapted, of course, because there's the custody, but for the finance photo crypto has had sexto. So if you are providing service got an intermediary basically exchange, you help people by yourselves to assets, you advise them on guitar sets you will be a regulated under the regulation. So you all catch. and. Then there's a regulator about of the regulation that is focused on the issuance of quotas. Any issue of will also be regulated. What is the meaning of a for issuing protested? And there's specific. Dispositions on stable coins, and this is a very, very sensitive topic with a lot of pages of regulation just to give you an idea. The whole regulation is like a hundred and seventy six pages so to just on meteorology allergy and stable going bar is like a

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