Authorities and financial institutions have shown their concerns regarding crypto assets in many instances. Citing the risk they posed over the economy, volatility, and non-compliant with any law make, many of them demanded crypto regulations. As a result of these efforts, authorities around the world across the countries are looking forward to bringing regulations over crypto.
The European Union also took an active interest in developing a regime for crypto regulations. Its Markets in Crypto Assets (MiCA) regulation is in its final stages and expected to be implemented soon. The soon to launch crypto regulations are often treated as “Landmark Crypto Regulations”.
Following the implementation of regulations, crypto assets issuers will be required to produce white papers that would be including technical roadmaps, crypto service providing platforms would need to be authorities registered and abide issuers of stablecoin to hold sufficient amounts to support their asset.
During its drafting, MiCA also witnessed some crucial changes according to the requirements and learning from contemporary events. For instance, the addition of specific sections for algorithmic stablecoin regulation. Apparently, the addition of this regulation came in the wake of advance preparation to mitigate instances like the fall of Terra networks algorithmic stablecoin UST. Additionally, there could be specific mention of non-fungible tokens (NFTS), as reported.
On 21st September 2022, the European Union was reported to have finalized its markets in crypto assets regulations’ full text.
Coinbase in Europe Amidst Crypto Regulation
Meanwhile, on 22n September, 2022, the leading US crypto exchange Coinbase announced its formal entry into the European Union region. Coinbase has registered with De Nederlandsche Bank (DNB)—Dutch Central Bank.
The crypto exchange became the first one to register with the Dutch financial institution and anticipates offering crypto-related products and services within the region. Also, Coinbase has plans to spread over other European countries after registering with DNB. Earlier Binance and Bitstamp like major crypto exchanges also entered the European region.
Currently, Coinbase has a vast user base across Europe—in nearly 40 countries. Following the registration, the Dutch central bank will be keeping an eye on crypto exchange’s activities and ensure that it follows compliance with anti-money laundering and anti-terrorist financial act.
Source: https://www.thecoinrepublic.com/2022/09/24/coinbase-in-european-union-amidst-crypto-regulations/