A European regulator has proposed new rules for cryptocurrency companies headquartered outside the bloc.
the European Securities and Markets Authority (Emirates Authority for Standardization and Metrology) Regulations introduced Monday (Jan. 29) would place restrictions on those companies' ability to serve customers in the European Union to prevent unfair competition.
The European Union made history last year when it became the first global jurisdiction to endorse a comprehensive regulatory framework for crypto assets, such as Bitcoin. The Markets in Crypto Assets (MiCA) regulations were adopted last June, but will not come into full effect until the end of this year.
To this end, the Securities and Markets Authority warned last year that even with the implementation of MICA, “retail investors will remain in the doldrums.” You should be aware That there will never be such a thing as “safe” crypto assets, highlights the inherent risks associated with this emerging asset class.
In a statement to investors, the regulator asked: “Can you afford to lose all the money you plan to invest?” The authority stressed that cryptoassets are vulnerable to “new operational and security risks,” making them unpredictable.
The latest proposal from the European Securities and Markets Authority addresses crypto asset companies based outside Europe that wish to provide services to European clients, rather than those based within the EU.
“The proposed guidance confirms ESMA’s previous message that the provision of crypto asset services by a company from a third country is limited under MiCA to cases where the customer is the exclusive initiator of the service,” ESMA said in a statement.
“This exemption should be understood to be very narrow and should be considered an exception. No company can use it to bypass MiCA,” the agency added.
This news comes as other jurisdictions consider their own encryption rules. In the United States, cryptocurrency industry figures are hoping this will be the country's year Adopts stablecoin regulations.
Jeremy AllaireCEO of stablecoin issuer USD Coin circleCountries around the world have quickly agreed to cryptocurrency regulations, and the United States is more likely to approve new stablecoin laws than it has in the past, he said earlier this month.
I think what you see is a desire from the administration, a desire from the Treasury Department, and from the United States [Federal Reserve]“By both chambers of Congress, certainly on a bipartisan basis,” Allaire told CNBC.
“Digital dollars He added: “What is happening around the world is that other governments are regulating dollar digital currencies before the United States.” “So I think there is a very strong desire to act and assert American leadership and engage appropriate consumer protections.”
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