EU watchdog warns of offshore crypto risks under MiCA regulation

The European Securities and Markets Authority warns crypto companies operating globally of the potential risks that may arise while seeking authorization under MiCA.

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EU releases crypto-asset classification tools to help firms comply with MiCA

EU regulators introduce standardized crypto-asset classification under MiCA with a new test and guidelines to ensure uniformity across the market as regulations begin to come into play.

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Paradigm calls on European markets regulator to show nuance regarding MEV

The venture capitalist firm said ESMAs approach to crypto market abuse could be a disaster for the industry without suggesting any better ideas.

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EU Watchdog Considers Crypto Integration Into $12.88 Trillion Investment Market

Europe’s securities regulator is seeking input from stakeholders on the potential inclusion of crypto assets in a potentially massive market. The European Securities and Markets Authority (ESMA), the regulatory authority responsible for overseeing financial markets within the European Union, has recently initiated a comprehensive review of the regulations surrounding the Undertakings for Collective Investment in Transferable Securities (UCITS) Eligible Assets Directive (EAD). This move could potentially enable the integration of cryptocurrencies into a vast investment market valued at approximately 12 trillion (roughly $12.88 trillion). On May 7, 2024, ESMA released a Call for Evidence seeking input from various stakeholders to assess the viability and implications of allowing UCITS to include a broader array of asset classes, notably cryptocurrencies. The UCITS framework, central to EU retail investment, accounts for around 75% of all retail investment in collective funds within the region. With its global reputation for strict regulation and investor protection, the inclusion of cryptocurrencies could represent a transformative shift in the investment landscape. The Next Big Catalyst For Crypto? ESMA’s review aims to address the evolving financial landscape, where the number and variety of financial instruments have expanded significantly since the UCITS framework was established nearly two decades ago. This expansion has led to uncertainties in determining asset eligibility, causing divergent interpretations and applications of the directive across member states. Sean Tuffy, a financial regulation expert, underscored the significance of this development to DL News, stating, “If ESMA is convinced, it would be the final step in mainstreaming crypto assets in Europe,” referring to it as a potential “game changer.” This sentiment is echoed by industry experts who believe that the inclusion of crypto assets could provide a robust alternative to traditional investment options, potentially enhancing portfolio diversification and returns. Related Reading: Crypto Traders Discuss Why Memecoins Have Been 2024s Most Profitable Narrative The Call for Evidence targets a broad audience, including investors, consumer groups, UCITS management companies, self-managed UCITS investment companies, depositaries, and trade associations. These stakeholders are invited to share their insights on market practices, interpretative issues, and practical application concerns related to the eligibility criteria and other provisions of the UCITS EAD. One of the critical areas of focus is the transversal consistency of key notions and definitions used in the UCITS EAD with other pieces of legislation in the EU Single Rulebook. This alignment is crucial to ensure that any new asset classes, such as cryptocurrencies, are integrated smoothly and consistently across all regulatory frameworks. Andrea Pantaleo, a lawyer specializing in crypto regulation, highlighted several potential benefits and challenges. He told DL News, “UCITS funds have specific investment limitations depending on the type of assets. We wont have a 100% crypto UCITS fund, but hopefully many investment funds could hold 1-2% of their liquidity in crypto. Related Reading: This Weeks Crypto Watchlist: Top Coins Poised For Gains However, he also pointed out a significant obstacle: the coordination of custody regulations, which must align with the EU’s upcoming Markets in Crypto-Assets regulation (MiCA). MiCA is set to establish stringent rules for the segregation of assets and policies for their safekeeping, which will be pivotal in the custody of crypto assets. The potential inclusion of cryptocurrencies in UCITS comes at a time when other major economies, such as the US and Hong Kong, have begun integrating crypto assets into their financial products, notably through the approval of Bitcoin ETFs. These developments have not only validated the financial viability of cryptocurrencies but have also spurred significant investment inflows into the sector. The ESMA consultation process is set to conclude on August 7, 2024, after which the watchdog will compile the feedback and develop its technical advice to the European Commission. This advice will play a crucial role in determining whether cryptocurrencies will be included in the UCITS framework, potentially heralding a new era for crypto investment in Europe. At press time, the total crypto market cap stood at $2.202 trillion. Featured image created with DALL·E, chart from TradingView.com

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EU seeks stakeholder opinions on adding crypto to 12T euro investment market

If approved, the EUs UCITS funds would make way for crypto assets to gain exposure to a 12 trillion euro investment product market.

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EU watchdog urges banks to prioritize clients in AI usage

The EU's top financial regulator, ESMA, mandates that banks and investment firms ensure AI tools prioritize client interests, reinforcing accountability under MiFID.

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ESMA Considers Adding Crypto to EUs $12.8 Trillion UCITS Investment Market

The Europe­an Union (EU) is taking a careful step towards including cryptocurrencie­s in its vast investment landscape. The­ European Securities and Marke­ts Authority (ESMA), the financial regulator of the EU, is asking for e­xpert opinions on potentially allowing Undertakings for Colle­ctive Investment in Transfe­rable Securities (UCITS) to hold crypto asse­ts. If this move is approved, […]

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Bitcoin Sees Largest ETF Inflows Since January, Becomes 5th Largest Asset In The World

Bitcoin has spent the majority of the past 24 hours on a notable rally that saw it price peak at an intraday high of $94,320. This rally marks an interesting change from the tight consolidation range between $80,000 and $85,000 that had defined Bitcoins trajectory through much of April.  Behind this breakout lies a significant uptick in institutional activity through Spot Bitcoin ETFs, which recorded their highest daily inflows since January. Interestingly, this inflow surge has helped push Bitcoin into the top five largest assets globally, surpassing Alphabet, Silver, and Amazon in market capitalization. Spot Bitcoin ETFs Sees Largest Inflows Since January According to data from SoSoValue, US-based Spot Bitcoin ETFs raked in $936.43 million in net inflows on Tuesday, April 22 alone, marking their best single-day performance since January 17 when it registered $1.08 billion. Wednesday, April 23 also witnessed similar performance, registering inflows of $916.91 million. Related Reading: Bitcoin Price Crash: Crypto Analyst Reveals What Would Reject Current Bearish Hypothesis BlackRocks iShares Bitcoin Trust (IBIT) led the way with a staggering $643.16 million in inflows, followed closely by Ark & 21 Shares’ ARKB with $129.5 million. Furthermore, Spot Bitcoin ETFs are now on four days of consecutive inflows of $100 million or more. The last time such happened was in the last week of January. These inflows into Spot Bitcoin ETFs follow a weeks-long dry spell in ETF activity, which saw many traders question the sustainability of institutional interest. Nonetheless, the timing of these inflows couldnt be more impactful. Bitcoins price surged in tandem with recent ETF activity, showing the the strong effect these ETFs have come to have on the spot price of Bitcoin. BTC Surpasses Amazon And Google To Become Fifth Largest Asset Worldwide The ETF inflows lit the spark and the resulting market reaction pushed Bitcoins rise up the global rankings. According to data from CompaniesMarketCap, Bitcoins total market value climbed to over $1.87 trillion as it crossed over $94,000 for the first time in eight weeks. Related Reading: Crypto Analyst Warns Of Volume Drop That Could Trigger 60% Bitcoin Price Crash To $49,000 This interesting move allowed it to overtake both Google (Alphabet) and Amazon in market cap rankings, especially considering these stock prices have been on a notable decline in a 30-day timeframe. This development positions BTC not only as a leading cryptocurrency but also as a top-tier macroeconomic asset, competing on the global stage with traditional tech and commodity giants. As it stands, Bitcoin is now outperforming the NASDAQ 100, and analysts are pointing to signs of decoupling from traditional indices. Now that Bitcoin is trading above $90,000 again, the next focus is on where it goes from here. The bullish trajectory would be on the $100,000 price level, and whether BTC can break above this level before the end of April. That said, the $94,000 region is now shaping up to act as an early resistance band, and short-term profit-taking could cause pullbacks that might liquidate buy orders. Featured image from Pixabay, chart from Tradingview.com

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90% of Crypto Trades Handled by Just 10 Exchanges, ESMA Warns

In acomprehensive analysis of the cryptocurrency market, the European Securitiesand Markets Authority (ESMA) has revealed the highly concentrated natureof crypto trading and the potential risks it poses to the broader financialecosystem.

The report,released on Wednesday, comes as the European Union prepares to implement theworld's first extensive regulatory framework for cryptoassets, dubbed MiCA.

EU Watchdog RaisesConcern over Crypto Market Concentration

ESMA's findings reveal that a mere ten exchanges oversee approximately 90% of allcryptocurrency trades, with Binance leading the pack with anastonishing 50% share in the market. The recent Finance Magnates Intelligence study confirms the market watchdog data, indicatingan increase in trading volumes of the top 10 crypto exchanges.

While this level of concentration is potentially beneficial from an efficiency standpoint, it raises significant concerns about the implications of a failure or malfunctionat a major exchange.

The top 10exchanges execute around 90% of total trading volume and, with a volume of overUSD 3.7 trillion or a market share of 49%, Binance is the largest exchange,ESMA commented in its report. The runner-up, Upbit, recorded only about a seventhof this volume."

A recent report by #ESMA analyses the dynamics of crypto asset trading and how they compare to #TradFi markets.Here's a TL;DR pic.twitter.com/ZFAWHwO9iL

Thisconcentration has increased over the years. In 2019, it was 54%, and currently,according to ESMA, it has risen to 73%.

Euro Is Not Important inCrypto Transactions

The reportrevealed that the euro has minimal involvement in cryptocurrency trading,with most transactions occurring outside the EU at exchanges domiciled in taxhavens.

Thedistribution of involved fiat money reflects a high reliance on the US dollarand the South Korean won as the markets on- and off-ramp, ESMA explained. Theeuro only plays a minor role and the announcement of the MiCA regulation hasnot caused an increase in euro transactions so far.

USD and South Korean Won are predominant, while the Euro plays a minor role. #MiCA has not affected Euro transactions significantly.

Furthermore,ESMA debunks the notion that cryptocurrencies serve as a safe haven duringtimes of market stress, noting a co-movement with equities and lack of stability in relation with gold.

As the EUrolls out its comprehensive regulatory framework for cryptoassets calledMiCA, ESMA's findings underscore the importance of oversight and riskmanagement in this rapidly evolving sector. The watchdog plans to discuss itsreport in greater detail during a webinar on April 25.

Regarding MiCA, ESMA publishedits final report a few weeks ago and seeks to strike a balance between a high level ofinvestor protection and innovation within the crypto industry.

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EU Crypto Regulations Getting Closer: ESMA Publishes Final Report

TheEuropean Securities and Markets Authority (ESMA) has taken significant stepstowards regulating the crypto-asset industry by publishing its first finalreport and launching a third consultation package under the Markets inCrypto-Assets Regulation (MiCA).

ESMA Finalizes First Rulesfor Crypto-Asset Service Providers

In itsfirst final report, ESMA has outlined proposals on the information required for theauthorization of crypto-asset service providers (CASPs), the notificationprocess for financial entities intending to provide crypto-asset services, theassessment of the intended acquisition of qualifying holdings in CASPs, and howCASPs should address complaints.

The reportaims to promote fair competition between CASPs and create a safer environmentfor investors across the European Union.

ESMA'sSecurities and Markets Stakeholder Group has advocated for a "levelplaying field" where financial institutions providing crypto-assetservices are subject to the same oversight and regulation as intermediariesoffering similar financial services.

What is in the Report? Information required for: authorisation where financial entities notify intent to provide crypto-asset services assessment of intended acquisition of a qualifying holding in a CASP How CASPs should address complaintshttps://t.co/FWxk0W4v3d pic.twitter.com/iutLpGRUdX

The grouphas endorsed a "two-track approach" involving notificationrequirements for regulated financial entities that largely align with theauthorization requirements for other entities.

Bystriking a balance between investor protection and fostering innovation,regulators are rightly aiming to promote trust in the crypto ecosystem andensure its sustainable growth in the long term, Kok Kee Chong, the CEO ofAsiaNext, commented on the final report.

Third Consultation PackageSeeks Input on MiCA

ESMA'sthird consultation package seeks input from stakeholders on four sets ofproposed rules and guidelines.

These cover detecting and reporting suspected market abuse in crypto-assets,policies and procedures for crypto-asset transfer services, suitabilityrequirements for certain crypto-asset services, and ICT operational resiliencefor entities under MiCA. Stakeholders have until June 25, 2024, to provide feedback.

What is in the #consultation? Detection & reporting market abuse in #CryptoAssets Policies & procedures transfer services Suitability requirements and format of the periodic statement for portfolio management #ICT operational resiliencehttps://t.co/4IBSL3GYvt pic.twitter.com/0xSQvJQbur

Withcrypto markets known for their high volatility, a sound risk framework helps anexchange minimise the impact of market uncertainties for institutional traders,Aligning with wider financial industry best practices, it is key for exchangesto engage in proactive risk management, Kok Kee Chong added.

TheEuropean Banking Authority (EBA) has also been consulting on themeasures under the MiCA regulation since its completion in 2023. Earlier in themonth, EBA and ESMA released a draft of regulations for issuers of stablecoins.

#EBA final draft Regulatory Technical Standards (RTS) under #MiCAR These set out the requirements, templates and procedures for handling complaints received by issuers of asset reference tokens (ARTs) https://t.co/yT3pSGSowh pic.twitter.com/DvycTm2MqI

As thecrypto ecosystem has experienced concerning developments, such as the collapseof crypto-asset service providers, ESMA has incorporated these lessons into theregulatory framework.

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EU Securities Watchdog ESMA Warns of Unregulated Crypto, Gold Investment Offerings

The European Securities and Markets Authority (ESMA) has issued a warning regarding investments in assets like cryptocurrencies. They will remain unregulated in most countries until the EU’s Markets in Crypto Assets (MiCA) law is enforced across the Union, the regulator pointed out. ESMA Highlights Risks Related to Unregulated Products and Services for Crypto and Other

The post EU Securities Watchdog ESMA Warns of Unregulated Crypto, Gold Investment Offerings appeared first on BTC Ethereum Crypto Currency Blog.

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Binance Rescinds Decision To Remove Privacy Coins From European Market

Binance has made a decision to reverse its initial plan of delisting certain privacy coins in Europe. This change in course comes after the exchange revised its operations to align with the local regulatory requirements. According to the developers of Verge (XVG) and Secret (SCRT) cryptocurrencies, a significant outcome was achieved. Seven privacy-focused tokens were stopped from being de-listed. These tokens, which were at risk of being removed from the listings, have been successfully retained. A comment received from the cryptocurrency exchange on June 26 states: After carefully considering feedback from our community and several projects, we have revised how we classify privacy coins on our platform to comply with EU-wide regulatory requirements. The crypto exchange also mentioned that due to its status as a registered exchange in multiple European Union jurisdictions, it is obligated to comply with local regulations. These regulations mandate that exchanges have the capability to monitor transactions involving the coins listed on their platform. In May, Binance communicated via email to its customers in France, Italy, Spain, and Poland regarding changes to its services. The message outlined the discontinuation of trading services for 12 cryptocurrencies known for enabling anonymous transactions. Related Reading: Avalanche (AVAX) Rumbles With 18% Gain – Is A Trend Reversal On The Horizon? Prominent privacy coins such as Monero, Dash, and Zcash were among those affected. Additionally, lesser-known tokens like XVG and SCRT were also scheduled for delisting from the exchange’s offerings. Following the retraction of the decision to delist privacy-focused tokens, several projects have utilized Twitter as a platform to provide reassurance to their community members. Binance Complies As EU Sets Standards For Digital Assets The decision to delist privacy-focused tokens came as a response to the European Union’s implementation of the Markets in Crypto Assets (MiCA) regulation. This regulation includes the “travel rule” for crypto transactions, which requires enhanced transparency and information sharing. Consequently, there is a potential risk for firms facilitating the trading of privacy coins to be non-compliant with EU law. EU policymakers have established clear regulations with the goal of positioning Europe as a leading hub for cryptocurrencies and digital assets. In July, the European Securities and Markets Authority (ESMA) is set to initiate a consultation process for MiCA. These laws have an implementation timeline of 18 months to ensure full compliance and effective implementation of the regulatory framework. Cryptocurrency companies, including Ripple, have expressed their appreciation for the regulatory clarity provided by the MiCA (Markets in Crypto Assets) regulations. Binance’s decision to cease support for privacy coins dealt a major blow to advocates of these cryptocurrencies in Europe. Earlier, leading exchanges such as Kraken, Huobi, and Bittrex had already delisted popular privacy coins like Monero and Dash. Related Reading: MATIC Price Recovery Hits Roadblock, When Will Bulls Break Through? In other jurisdictions such as Dubai, Japan, and South Korea, authorities have taken a firm stance regarding anonymity-enhancing cryptocurrencies. These governments have adopted a clear-cut approach by implementing strict measures to crack down on these privacy coins. Outright bans have been imposed in some cases where there has been an explicit prohibition of the trading and issuance of privacy coins. Featured image from UnSplash, charts from TradingView.com

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Galeria Paloma Debuts at Art Fair Philippines with NFT Art Exhibit

Galeria Paloma's NFT exhibition at Art Fair Philippines will be displayed in parralel in Milan, Italy.

The post Galeria Paloma Debuts at Art Fair Philippines with NFT Art Exhibit appeared first on BitPinas.

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Kuh Ledesma Releases NFT to Benefit PAWS

Kuh Ledesma's NFT will be available on AnimalAid.io and all of its proceeds will go to animal rights champion PAWS.

The post Kuh Ledesma Releases NFT to Benefit PAWS appeared first on BitPinas.

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EU Regulators Warn against ‘Highly Risky and Speculative’ Crypto Assets

Multiple financial market regulators within the European Union released a joint warning statement on Thursday against crypto-assets, saying many of them are “highly risky and speculative.

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Hungarian Central Bank Governor Advocates EU Wide Crypto Ban

The Governor of the Hungarian Central Bank, György Matolcsy, recommended that all cryptocurrency-focused activities including trading and mining should be banned across the European Union. (Read More)

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EU Market Watchdog Speaks Against Renewable Energy Mining for PoW

The Vice-Chair of the European Securities and Markets Authority (ESMA), Erik Thedéen has taken a stance against the use of renewable energy for all PoW mining operations. (Read More)

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EU's ESMA Wants Public Input on Proposed DLT Regulation

The European Union’s Securities and Markets Authority has called on concerned market stakeholders to comment on its proposed regulation for the use of Distributed Ledger Technology in securities trading and settlement. (Read More)

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ESMA Remains Concerned about Crypto Volatility and ‘Market Exuberance’

The European regulator also highlighted a possible relationship between cryptos and environmental collateral damages.

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Crypto is Volatile but Innovative says European Finance Authorities

ESMA says crypto is volatile but innovative. The framework calls for more transparency and legal certainty. The European Securities and

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