Bitcoin

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    <h4 class="relative p-1 rounded-sm flex items-center justify-center bg-token-main-surface-primary text-token-text-primary h-8 w-8"><strong>On July 12th, three key European Supervisory Authorities, EBA, EIOPA, and ESMA, released a consultation paper. </strong></h4> 
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     This paper aims to standardize the classification of digital assets across the region.
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<p>This initiative is crucial as MiCA regulations begin to take effect.</p> 
<h5><strong>New Crypto-Asset Classification Tools by EU Authorities</strong></h5> 
<p>The <a href="https://www.esma.europa.eu/sites/default/files/2024-07/ESA_2024_12_Consultation_Paper_Art_97_MiCA_Guidelines.pdf" target="_blank" rel="noopener">newly released guidelines</a> provide a comprehensive approach to classifying various types of crypto assets. The framework introduces a question-based test to help firms determine whether a token falls under the MiCA regulations. This test involves assessing factors such as:</p> 
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 <li>The identity of the issuer.</li> 
 <li>The token’s blockchain foundation, and whether the token qualifies as a financial instrument.</li> 
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<p>By using these structured prompts, firms can more accurately categorize tokens according to MiCA standards.</p> 
<p><img decoding="async" class="wp-image-146150 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xcvvcbnvbnvbhnghn-217x300.jpg" alt="" width="450" height="622" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xcvvcbnvbnvbhnghn-217x300.jpg 217w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xcvvcbnvbnvbhnghn-304x420.jpg 304w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xcvvcbnvbnvbhnghn.jpg 393w" sizes="(max-width: 450px) 100vw, 450px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/Cointelegraph/status/1814306942723948604" target="_blank" rel="noopener">X</a></strong></h6> 
<p>The guidelines distinguish between different types of crypto assets. This includes standard crypto assets, <a href="https://www.mccannfitzgerald.com/knowledge/financial-services-regulation/money-money-money-electronic-money-vs-electronic-money-tokens#:~:text=What%20are%20E%2DMoney%20Tokens,the%20Euro%20or%20US%20Dollar)." target="_blank" rel="noopener">electronic money tokens (EMTs)</a>, and <a href="https://www.eba.europa.eu/regulation-and-policy/asset-referenced-and-e-money-tokens-micar" target="_blank" rel="noopener">asset-referenced tokens (ARTs)</a>. For tokens classified as ARTs, issuers are required to include a legal opinion in their white papers. The opinion must confirm that the tokens are not EMTs or any other excluded asset types under MiCA. The goal is to ensure that ARTs are correctly classified and compliant with the relevant regulations.</p> 
<h5><strong>More About EU’s Crypto-Asset Classification Tools</strong></h5> 
<p>For crypto assets that do not fit the ART or EMT categories, the guidelines mandate that the white papers provide a detailed explanation of the asset’s classification. This requirement aims to enhance transparency and ensure that all digital assets are appropriately categorized under <a href="https://www.altcoinbuzz.io/?s=Mica" target="_blank" rel="noopener">MiCA</a>, thereby reducing regulatory ambiguity.</p> 
<p><img decoding="async" class="wp-image-146153 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xvcbvcbvnnbhjghgjjg-300x297.jpg" alt="" width="453" height="449" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xvcbvcbvnnbhjghgjjg-300x297.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xvcbvcbvnnbhjghgjjg-150x150.jpg 150w, https://www.altcoinbuzz.io/wp-content/uploads/2024/07/xvcbvcbvnnbhjghgjjg.jpg 393w" sizes="(max-width: 453px) 100vw, 453px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/JAN3com/status/1648928732898549761" target="_blank" rel="noopener">X</a></strong></h6> 
<p>These new classification tools are designed to bring greater consistency to the crypto market, aligning with MiCA’s objectives to create a unified regulatory framework across the EU. By providing clear guidelines and a standardized approach to asset classification, the EU hopes to facilitate smoother compliance for crypto firms and foster a more stable and transparent digital asset environment.</p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/eu-launches-crypto-asset-classification-tools/">EU Launches Crypto-Asset Classification Tools</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

EU Launches Crypto-Asset Classification Tools

Altcoin Buzz

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