The European Council advances the progress of two cryptocurrency proposals, aiming to establish a regulatory framework for crypto assets - Aliens: AI Crypto News & Markets Updates

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The European Council advances the progress of two cryptocurrency proposals, aiming to establish a regulatory framework for crypto assets

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Aliens

Thu, Nov 25, 2021

According to news from The Block on November 25, the Council of the European Union passed two proposals on digital assets on Wednesday, namely the "Markets in Crypto Assets" (MiCA) and the "Digital Operational Resilience Act" (DORA). Assets establish a regulatory framework that focuses on protecting consumers and mitigating cyber threats. It appears that these two proposals are part of the council's digital finance package. The package also includes the board's overall strategy related to regulating encrypted assets and a proposal on distributed ledger technology. The purpose is to establish uniform rules of the road for the EU's cryptocurrency to promote innovation and investor protection throughout the member states, rather than allowing a fragmented approach; that is, the standards of each country are different.

It appears that MiCA has created a framework for the issuance and service of transferable encrypted assets, mainly calling on companies to maintain transparency in their operations through white papers submitted with any prospectus and stipulating that marketing is "fair" and "clearly identifiable" ads. Any central bank's digital currency or tokens issued by other public institutions are not included, and functions like loyalty points, NFTs, or tokens representing physical assets or services do not appear in the framework. The proposal also clearly stated that the regulations will apply to natural or legal persons, not the technology itself. DORA formulated the task of information and communication technology risk management. In addition to authorizing the testing of these systems to avoid cyber risks, it also creates a unified reporting framework for any incident. It also allows European regulators to examine the company's use of third-party service providers for information or communication technology.

The council will negotiate with the parliament on these proposals, and once an interim deal is struck, the two agencies will formally adopt these regulations.

Source: The Blockcrypto

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