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