Featured Product

    EU Reaches Provisional Agreement on MiCA; EC Adopts Digital Strategy

    June 30, 2022

    The European Council presidency and the European Parliament reached a provisional agreement on the markets in crypto-assets (MiCA) proposal, which covers issuers of unbacked crypto-assets, “stablecoins,” and the trading venues and wallets where crypto-assets are held. In addition, the European Commission (EC) adopted a new Digital Strategy, which provides a corporate approach to further streamline the information technology initiatives, refocus on digital modernization, and provision of innovative services.

    Under the provisional agreement reached, crypto-asset service providers will need an authorization to operate within the European Union. National authorities will be required to issue authorizations within a timeframe of three months. Regarding the largest crypto-asset service providers, national authorities will transmit relevant information regularly to ESMA. Non-fungible tokens—that is, digital assets representing real objects like art, music, and videos—will be excluded from the scope, except if they fall under the existing crypto-asset categories. Within 18 months, the European Commission will be tasked to prepare a comprehensive assessment and, if deemed necessary, a specific, proportionate and horizontal legislative proposal to create a regime for non-fungible tokens and address the emerging risks of such new market. MiCA rules will protect consumers against certain risks associated with the investment in crypto-assets and help them avoid fraudulent schemes. MiCA rules will also cover any type of market abuse related to any type of transaction or service, notably for market manipulation and insider dealing. Actors in the crypto-assets market will be required to declare information on their environmental and climate footprint. ESMA will develop the draft regulatory technical standards on the content, methodologies, and presentation of information related to principal adverse environmental and climate-related impact. Within two years, the European Commission will have to provide a report on the environmental impact of crypto-assets and the introduction of mandatory minimum sustainability standards for consensus mechanisms, including the proof-of-work. The provisional agreement is subject to approval by the Council and the European Parliament before going through the formal adoption procedure. 

    The new Digital Strategy is based on guiding principles, which will be reinforced by the update, such as digital by default and once-only, security and privacy, openness and transparency, interoperability and cross-border, and user-centric, data-driven and agile. The strategy strengthens internal cooperation and knowledge sharing between departments and with member states. There will be increased support for staff to boost their digital skills. The corporate strategy encompasses five strategic objectives:

    • Foster a digital culture by empowering all staff and equip them with the necessary skills and tools to think "digital first," while encouraging cross-functional teams and collaboration, supported by a flexible and accessible digital workplace
    • Enable digital-ready EU policymaking by ensuring digital technologies are considered from the very beginning of the policy cycle, making new policies fit for the Digital Decade
    • Empower business-driven digital transformation by supporting EC departments in reinventing their business by leveraging innovative technologies and data reuse
    • Ensure a seamless digital landscape by efficiently managing a streamlined portfolio of information technology systems
    • Sustain a green, secure, and resilient infrastructure as the foundation of the EC's operations and new ways of working


    Related Links


    Keywords: Europe, EU, Banking, Securities, Crypto-Asset, MiCA, Stablecoins, Fintech, Regtech, Digital Strategy, ESG, Climate Change Risk, European Council, EC, ESMA, European Parliament

    Featured Experts
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    FASB Proposes Improvements to 2023 GAAP Reporting Taxonomy

    The Financial Accounting Standards Board (FASB) is seeking comments, until November 03, 2022, on the proposed technical and other conforming improvements for the 2023 GAAP Financial Reporting Taxonomy.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8588