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What is the primary legislative basis for crypto-asset regulation in the European Union?
The EU's Markets in Crypto-Assets (MiCA) Regulation, adopted on 31 May 2023, is the foundational framework governing crypto-assets including stablecoins in the EU, based on Article 114 of the Treaty on the Functioning of the European Union.
"REGULATION (EU) 2023/1114 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937"
What is the primary legislative basis for crypto-asset regulation in the European Union?
Why does the European Union support the development of distributed ledger technology in financial services?
The EU views distributed ledger technology, including blockchain, as a driver of new business models, economic growth, and employment opportunities. EU policy actively promotes DLT adoption in the financial sector as part of a broader digital modernisation agenda.
"The Union has a policy interest in developing and promoting the uptake of transformative technologies in the financial sector, including the uptake of distributed ledger technology (DLT)."
Why does the European Union support the development of distributed ledger technology in financial services?
How does the EU's MiCA regulation define crypto-assets?
Under MiCA, crypto-assets are defined as digital representations of value or rights. The regulation recognises their potential to deliver significant benefits to market participants, including retail holders, while also acknowledging the need for appropriate oversight.
"Crypto-assets are digital representations of value or of rights that have the potential to bring significant benefits to market participants, including retail holders of crypto-assets."
How does the EU's MiCA regulation define crypto-assets?
What overarching goal does MiCA serve within the EU's broader financial services legislative agenda?
MiCA is designed to ensure EU financial services legislation remains fit for the digital age, contributing to a future-proof economy. It aims to balance innovation enablement with consumer protection and regulatory clarity across the crypto-asset sector.
"It is important to ensure that Union legislative acts on financial services are fit for the digital age, and contribute to a future-proof economy that works for people, including by enabling the use of innovative technologies."
What overarching goal does MiCA serve within the EU's broader financial services legislative agenda?