EU Updates Crypto Classification Rules Under MiCA

The European Union has announced new regulations for classifying digital assets and cryptocurrencies under the Markets in Crypto-Assets Regulation (MiCA).

Released on July 12 by the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA), and European Securities and Markets Authority (ESMA), these guidelines aim to standardize how various crypto-assets are categorized.

The new framework includes a series of questions to determine whether a token should be classified under MiCA or another category like e-money tokens (EMTs) or asset-referenced tokens (ARTs).

Issuers must provide detailed legal opinions to clarify their tokens’ classifications.

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Feedback on these guidelines is invited until mid-October, with a virtual hearing scheduled for September 23.

The first MiCA regulations on stablecoins took effect on June 30, and further regulations are expected by December 2024. Circle has already ensured its stablecoins, USDC and EURC, meet MiCA standards.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.