EBA And ESMA Unveil Guidelines To Regulate The Crypto Asset Market
Date
10/20/2023 7:01:57 PM
(MENAFN- eTrendy Stock)
The European banking Authority (EBA) and the European Securities and Markets Authority (ESMA) unveiled a consultative document comprising two draft guidelines. This document aims to delineate the parameters for evaluating the competence of management board members and shareholders. People with significant stakes in issuers of Asset-Referenced Tokens (ARTs) and crypto Asset Service Providers (CASPs) are in the crosshairs.
Harmonized Framework for Stakeholder Evaluation The mooted joint guidelines present a unified mechanism for regulatory bodies to assess the eligibility of shareholders or members, either direct or indirect, possessing substantial stakes in ART or CASP issuers. This unified framework is a cornerstone for authorizing ART and CASP issuance. Additionally, it conducts prudent evaluations for prospective acquisitions.
The guidelines evaluating the competence of management board members in ART and CASP issuing entities set forth a standardized yardstick. This yardstick measures their knowledge, expertise , integrity, and capacity to allocate sufficient time to meet their obligations.
The overall objective is clear: bolster the integrity of and foster trust in the cryptocurrency market and its related services. Moreover, it endeavors to mitigate discrepancies in rule application and arbitrage. The consultation window is set to remain open until January 22, 2024, allowing for a broad spectrum of inputs to shape the final guidelines.
Eyeing Upcoming EBA and ESMA Regulations In anticipation of looming regulations, the European Union's banking watchdog has nudged stablecoin issuers to align with certain“guiding principles voluntarily.” These principles, centered around risk management and consumer protection, were made public by the EBA on July 12. This move is a precursor to elucidating the mandates of the Markets in Crypto-Assets regulation, slated to take effect on June 30, 2024.
The collaborative endeavor by EBA and ESMA marks a significant stride towards sculpting a regulated framework for cryptocurrencies. Through these proposed guidelines, a pathway is being carved for establishing a well-regulated, trustworthy environment for stakeholders and consumers.
Furthermore, this initiative is a testimony to the proactive approach of European regulatory bodies. They seek to embrace the dynamism of crypto-assets while ensuring a balanced oversight.
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The post EBA and ESMA Unveil Guidelines To Regulate The Crypto Asset Market appeared first on CryptoMode .
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