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EBA on MiCAR – Shaping the Future of Blockchain Regulation in Europe

by | Oct 29, 2024 | news | 0 comments

The European Blockchain Association (EBA) is focused on the evolving Crypto-Assets Regulation (MiCAR), underscoring Europe’s path to global leadership in responsible blockchain regulation. As blockchain continues to transform finance and technology, the EBA remains at the forefront, committed to fostering a secure, transparent, and forward-looking ecosystem for all blockchain participants.

At the ongoing expert group discussions, industry leaders and regulators delved into the nuances of MiCAR to explore regulatory strategies that ensure the stability, transparency, and innovation essential for thriving digital asset markets. The discussions emphasized the necessity for a balanced regulatory approach—one that fuels market growth while rigorously managing systemic risks. Key areas of focus included tailoring fund requirements for Crypto-Asset Service Providers (CASPs), enhancing clarity on asset segregation rules, and promoting a seamless, cross-border compliance framework.

Key Initiatives and Policy Recommendations:

  1. Risk-Sensitive Capital Requirements for CASPs: To foster resilience without hampering growth, the EBA advocates for risk-sensitive capital models rather than one-size-fits-all thresholds. These adaptable fund requirements would better support CASPs of varying scales, fortifying market stability.
  2. Flexible Asset Segregation Protocols: As CASPs manage gas fees and network transactions, MiCAR’s framework must allow legal and technical adaptability. Such measures ensure client protection while remaining accessible to smaller providers.
  3. Cross-Border Operational Autonomy: Enabling seamless, passported operations across EU Member States is vital. EBA calls on National Competent Authorities (NCAs) to respect MiCAR’s provisions, minimizing bureaucratic hurdles for CASPs operating across borders.
  4. Global Partnership Flexibility: EBA advocates expanding MiCAR permissions to partner with qualified global providers, aligning with international standards for compliance and operational resilience.

Call for Collaboration

The EBA is dedicated to collaborating with the EU to create a MiCAR framework that’s adaptable, consistent, and conducive to Europe’s blockchain ecosystem. By supporting sustainable regulatory advancements, Europe is poised to lead blockchain innovation while safeguarding financial stability.

Get Involved

We invite stakeholders to join us in shaping Europe’s blockchain future by participating in ongoing discussions, championing progressive policies, and engaging with Europe’s dynamic blockchain community.

Together, we are building a regulatory landscape that empowers innovation, manages risks, and fuels economic growth across the European Union.