On July 12th, three key European Supervisory Authorities—EBA, EIOPA, and ESMA—released a consultation paper aimed at standardizing the classification of digital assets across the region, a crucial initiative as MiCA regulations begin to take effect.
New Crypto-Asset Classification Tools by EU Authorities
The new guidelines provide a comprehensive framework for classifying various types of crypto assets. This includes a question-based test to help firms determine whether a token falls under MiCA regulations. The test evaluates factors such as:
– The identity of the issuer
– The token’s blockchain foundation
– Whether the token qualifies as a financial instrument
Using these structured prompts, firms can more accurately categorize tokens according to MiCA standards.
The guidelines distinguish between different types of crypto assets, including standard crypto assets, electronic money tokens (EMTs), and asset-referenced tokens (ARTs). For tokens classified as ARTs, issuers must include a legal opinion in their white papers confirming that the tokens are not EMTs or other excluded asset types under MiCA. This ensures that ARTs are correctly classified and compliant with the relevant regulations.
More About EU’s Crypto-Asset Classification Tools
For crypto assets that do not fit into the ART or EMT categories, the guidelines require white papers to provide a detailed explanation of the asset’s classification. This aims to enhance transparency and ensure appropriate categorization under MiCA, reducing regulatory ambiguity.
These new classification tools are designed to bring greater consistency to the crypto market, aligning with MiCA’s objectives to create a unified regulatory framework across the EU. By providing clear guidelines and a standardized approach to asset classification, the EU hopes to facilitate smoother compliance for crypto firms and foster a more stable and transparent digital asset environment.
Source: altcoinbuzz.io
