Schlagwort: crypto news

• ACPR grants Circle e-money license for USDC and EURC across EU.
• Circle is the first stablecoin issuer to get licensed under MiCA regulation.
• MiCA aims to protect investors with stablecoin transaction limits.

Circle has become the first stablecoin issuer to secure regulatory approval under the European Union’s Markets in Crypto-Assets (MiCA) regulations.

The license, issued by France’s financial regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), grants Circle the ability to issue its USDC and Euro Coin (EURC) stablecoins across the EU.

Circle now authorized to issue stablecoins throughout the EU

Circle’s e-money license from the ACPR positions it as a pioneer in complying with MiCA regulations.

Jeremy Allaire, Circle’s co-founder and CEO, highlighted the significance of this achievement, noting that it reflects the company’s commitment to building robust and regulated infrastructure for digital currencies.

The license enables Circle to offer its stablecoin services throughout the European Union, thanks to MiCA’s “passporting” feature, which allows crypto firms registered in one EU country to operate across all member states.

In a nutshell, stablecoins, such as USDC and EURC, are cryptocurrencies pegged to fiat currencies, offering a stable alternative to the volatility typically associated with other cryptocurrencies like Bitcoin. They facilitate quick transitions in and out of crypto investments without relying on traditional bank accounts, making them an attractive option for investors.

Impact of MiCA regulations on crypto operations in the EU

MiCA represents the EU’s first comprehensive legal framework governing crypto operations, including specific provisions to protect investors and prevent market manipulation.

The initial set of MiCA regulations pertaining to stablecoins took effect immediately on June 30, while the remaining provisions for crypto asset service providers will be implemented by the end of December 2024.

Full compliance with all MiCA regulations is required by July 2026.

One notable aspect of MiCA’s stablecoin rules is the limit on daily transaction volumes of non-euro stablecoins, capped at 1 million transactions or 200 million euros. This regulation aims to ensure market stability and protect the financial system from potential risks associated with high-volume transactions.

Circle’s USDC stablecoin second to Tether’s USDT

Circle, established in 2018, has rapidly grown to become a major player in the cryptocurrency market. Its USDC stablecoin is the second-largest globally, with $32.4 billion worth of tokens in circulation, second only to Tether’s USDT, which boasts $112.7 billion.

The new regulatory approval under MiCA not only strengthens Circle’s market position but also enhances its ability to offer secure and compliant stablecoin services across the EU.

It is important to note that while some crypto services providers like Bitstamp have dropped Tether’s stablecoins in the EU, Circle’s regulatory approval gives the USDC an edge over the Tether’s stablecoins in the EU.

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• Cardano updates MiCA compliance indicators six months ahead of regulatory deadline.
• MiCA regulations focusing on stablecoins are already in effect since June 30.
• However, the broader MiCA regulations impacting crypto asset service providers are set to roll out in December.

In a strategic move underscoring its commitment to regulatory compliance and sustainability, the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has updated its MiCA (Markets in Crypto-Assets) compliance indicators.

This proactive measure, implemented six months ahead of the anticipated regulatory timeline, not only fortifies Cardano’s position in the market but also sets a new standard for the cryptocurrency industry. It highlights Cardano’s dedication to transparency, energy efficiency, and regulatory foresight.

Cardano pioneering MiCA regulatory compliance

By aligning its operations with the forthcoming MiCA regulations in the European Union, Cardano (ADA) continues to solidify its reputation as a forward-thinking blockchain network.

The MiCA regulation, aimed at ensuring transparency and sustainability in the crypto asset market, mandates that crypto issuers and service providers disclose their sustainability indicators. Cardano’s early adoption of these requirements demonstrates its leadership and commitment to regulatory adherence.

According to a MiCA compliance report released by the Cardano Foundation in partnership with CCRI on July 2, Cardano’s energy-efficient consensus protocol consumes significantly less electricity compared to proof-of-work protocols.

The report provides comprehensive data on Cardano’s total annualized electricity consumption, carbon footprint, and marginal power demand per transaction per second. These metrics align with the draft regulatory technical standards set forth by the European Securities and Markets Authority, positioning Cardano well ahead of its peers in regulatory readiness.

Frederik Gregaard, CEO of the Cardano Foundation, emphasized that developing MiCA-compliant sustainability indicators is crucial for building trust with regulators, investors, and users.

By taking these steps, Cardano not only ensures adherence to the upcoming EU regulations but also sets a benchmark for the broader crypto industry.

Gregaard highlighted the importance of such efforts in paving the way for wider adoption of blockchain technology in a sustainable manner.

Cardano’s realignment with MiCA an assurance for ADA holders

Cardano’s move to align its operations with the forthcoming MiCA regulations in the European Union is particularly significant for ADA holders and stakeholders, providing them with reassurance about the project’s resilience and foresight in navigating the evolving regulatory landscape.

The proactive approach serves as a model for other cryptocurrency projects, demonstrating the benefits of early compliance and robust regulatory strategies.

With the initial phase of MiCA regulations, focusing on stablecoins, already in effect since June 30, and broader regulations impacting crypto asset service providers set to roll out in December, Cardano’s early compliance efforts place it in a strong position.

The crypto community watches closely, anticipating further innovations and regulatory advancements from Cardano as it continues to lead by example in the blockchain space.

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• Turkey legalizes cryptocurrencies, defining them as “intangible fixed assets.”
• SPK permission required for crypto organizations, with strict regulatory oversight.
• Severe penalties for unauthorized activities, enhancing market security and compliance.

In a landmark move, Turkey has granted legal status to cryptocurrencies, redefining them as “intangible fixed assets” through a new regulation.

The new law, which has been published in the Official Gazette after approval by the parliament, not only legitimizes digital currencies but also introduces stringent oversight and penalties for unauthorized activities.

By mandating permissions from the Capital Markets Board (SPK) and implementing comprehensive regulatory standards, Turkey aims to increase transparency, security, and investor confidence in its cryptocurrency market.

Turkey’s new legal framework for cryptocurrencies

The new cryptocurrency law in Turkey marks a significant shift in how digital assets are perceived and managed in the country.

By classifying cryptocurrencies as “intangible fixed assets” within the Capital Markets Law, the country has laid the foundation for a more structured and enforceable approach to regulating these financial instruments. This classification offers a clear legal definition, thereby reducing ambiguities and enhancing the legitimacy of cryptocurrencies in Turkey’s financial ecosystem.

One of the most notable features of this regulation is the requirement for organizations operating in the cryptocurrency sector to obtain permission from the SPK. These entities are given a one-month window to apply for the necessary licenses, after which they will be under the regulatory supervision of the SPK.

This move is designed to mitigate the risks traditionally associated with the cryptocurrency market, promoting a safer and more reliable environment for investors.

The new law enhances market security and compliance

The new law introduces severe penalties for unauthorized cryptocurrency activities. Individuals involved in unlicensed transactions could face judicial fines calculated between 5,000 and 10,000 days and imprisonment ranging from three to five years.

This strict enforcement strategy aims to deter illegal activities and ensure compliance with the regulatory framework, thus fostering a more secure market.

Additionally, the regulation mandates meticulous record-keeping of all transactions conducted on cryptocurrency exchanges. This requirement is expected to create a clear audit trail, which will help in preventing fraud and other illicit activities.

By enhancing transparency, these measures aim to build investor trust and confidence in the cryptocurrency sector.

Structured listing procedures and standards

To further streamline the cryptocurrency market, the regulation requires platforms dealing with digital assets to develop written listing procedures.

These procedures will govern the selection, initial sale or distribution, and termination of trading of assets. The SPK will regulate the principles and standards applied to these procedures, ensuring a consistent and reliable framework for cryptocurrency trading platforms.

The introduction of these comprehensive measures signifies Turkey’s commitment to integrating cryptocurrencies into its broader financial regulatory environment.

By defining clear rules and establishing strict enforcement mechanisms, Turkey aims to create a more transparent, secure, and investor-friendly cryptocurrency market.

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• The IRS has set up a tax reporting framework for cryptocurrency brokers, which will be implemented in 2025.
• The framework does not include decentralised finance and non-hosted wallets, although rules for those will come later in the year.

Under the new framework, crypto brokers, hosted wallet services, and digital asset outlets must file 1099 tax forms to document gains earned on their users’ digital assets. These assets will include coins, tokens, NFTs, and stablecoin transactions above a certain threshold.

The new regime does not yet include tax reporting processes for proceeds and earnings from decentralised finance activities or non-hosted wallets, as it is focused on large centralised firms. However, regulations for DeFi will reportedly come later in the year and will take effect along with the rest of the framework in January 2025.

The regime stipulates that users who earn less than $10,000 worth of stablecoins in a year are exempted from reporting. Furthermore, crypto brokers can report stablecoin sales as an aggregate, although they must report sophisticated, high-volume individual sales separately.

For NFTs, users are exempt from reporting NFT sales proceeds under $600 in a financial year.

Starting 2026, crypto brokers will be required to maintain a cost basis record for all assets, including the prices at which users purchase their assets. Real estate transactions settled with crypto will also be reported using the fair market value of the digital assets used.

The post U.S. Treasury issues new Cryptocurrency tax rules appeared first on CoinJournal.

• The Markets in Crypto-Assets (MiCA) regulation is a legislative framework established by the European Union to regulate crypto assets and related services within the region.
• MiCA was adopted by the European Parliament in 2023 and will come into effect on Sunday, although not all at once.

MiCA provides regulatory clarity to the entire digital assets market across the Eurozone, making Europe one of the first Western countries to implement a clear framework that crypto exchanges, digital assets companies, and stablecoin issuers can adopt to remain compliant.

The framework aims to protect European investors from the fraud and risks plaguing the crypto markets while fostering innovation, economic competitiveness, and the interest of the Eurozone.

MiCA pushes for innovation in its stipulations around stablecoins, which will allow Euro-denominated stablecoins to replace the dollar-denominated variant. Under the new rules, stablecoins will be treated as electronic money, subjecting issuers to the same levels of compliance as traditional banks and money transmitters, including a 1:1 redemption to the Euro.

While the framework pushes for bold reforms, it also emphasizes protecting the European investor by mandating digital service providers obtain licenses as either digital asset service providers (DASP), virtual asset service providers (VASP), or crypto asset service providers (CASP).

Global stablecoins are not allowed under MiCA, and stablecoins pegged to other cryptocurrencies must primarily comply with European e-money licensing requirements. This would entail abiding by prudential, financial-crime compliance, and other rules.

To boost job and economic growth, licensed entities must maintain a local presence within the EU, which will serve as a base for their European operations.

While MiCA is a step forward, it is not without fault. Some of its faults include the cost of compliance, which could be burdensome on smaller crypto exchanges and service providers, vague (virtually non-existent) stipulations around decentralised finance, and a lack of flexibility in some stipulations, like those around stablecoins.

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