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The Two-Class System of Regulation Plaguing Europe

The Two-Class System of Regulation Plaguing EuropeIn the rapidly evolving landscape of digital finance, the emergence of crypto assets has introduced unprecedented challenges as well as opportunities for regulators who provide proactive frameworks across the globe. The European Union is the largest government body that has done so through the Markets in Crypto-Assets Regulation (MiCAR), however, it finds itself at a […]

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SEC drops investigation into Ethereum: Law Decoded

A letter from Consensys states that the SEC’s approval of spot Ether exchange-traded funds indicated that it had “updated its position to classify ETH as a commodity and not a security,” but not everyone agrees.

The United States Securities and Exchange Commission’s (SEC) case to prove Ether is a security may not have been as strong as it let on. The SEC closed its investigation into whether Ether is a security on June 19.

Consensys lawyer Laura Brookover said there will be “no more protestations from the SEC that Ether is a security.” She said it was a reaction to being pushed to “lift the subpoenas on Consensys given their recent ETH [exchange-traded fund] rule change approvals predicated on ETH being a commodity.”

The letter from Consensys states that the SEC’s approval of spot Ether (ETH) exchange-traded funds (ETFs) indicated that it had “updated its position to classify Ether as a commodity and not a security.”

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Uphold to delist USDT and 5 stablecoins by July 1, citing MiCA

Apart from Uphold, other major crypto exchanges, including Binance, Kraken and OKX, also tweaked their stablecoin listing policies to comply with MiCA regulations.

Cryptocurrency exchange Uphold has sent a notice to its European users informing them that the platform will end support for six popular stablecoins from July 1. Uphold says it is delisting the stablecoins to align with the European Union’s Markets in Crypto-Assets Regulation (MiCA).

The six stablecoins are Tether (USDT), Dai (DAI), Frax Protocol (FRAX), Gemini dollar (GUSD), Pax dollar (USDP) and TrueUSD (TUSD). Users holding these stablecoins must convert them to a different cryptocurrency before June 28, after which the cryptocurrency exchange will automatically convert them into USD Coin (USDC).

MiCA was passed into law in May 2023 and went into partial effect in June 2023. The extensive EU crypto laws are expected to come into full force by the end of 2024.

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Europe’s crypto industry can ‘sleep better at night’ with new parliament

The European elections have formed a new EU Parliament that will rule for the next five years.

The new European parliament is set to continue the European Union’s relatively supportive policies toward the cryptocurrency industry.

Last week, 185 million EU voters from 27 member states took part in the elections to choose the new European Parliament.

The European political arena has transformed thanks to a surge in representation from the far-right wing, the consolidation of the European People’s Party (EPP) and the decline of the Greens/European Free Alliance (Greens/EFA).

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MiCA regulation takes shape under EBA’s newest guidelines

The European Banking Authority has introduced a series of technical standards and guidelines for token issuers as MiCA implementation moves forward.

The European Banking Authority (EBA) has released a comprehensive package of technical standards and guidelines under the Markets in Crypto-Assets (MiCA) regulation, providing regulatory guidance for asset-referenced tokens (ARTs) and e-money tokens (EMTs) across Europe. 

The package covers six topics, from stress testing programs and asset reserves to recovery plans. Under MiCA, ARTs are tokens backed by assets like commodities, real estate, or a basket of different assets, while EMTs maintain a stable value by being pegged to fiat currencies and used for payments, like a stablecoin.

Specifically, the authority provides guidelines for token issuers, including the need for enough financial resources (own funds) to cover potential risks. It also creates parameters to determine if an issuer is facing a higher degree of risk, which should lead to an increase in own fund reserves.

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EU elections 2024: Pro-crypto parties pick up seats amid Green losses

The European elections have caused a stir, but several pro-crypto or crypto-supportive parties have gained seats.

From June 6 to 9, more than 185 million people from the European Union’s 27 member states voted for candidates to serve a five-year term in a new European Parliament, the legislative branch of the political bloc.

This pivotal event will shape the political direction of the EU for five years, and crypto and blockchain are no exception.

The election results are mixed: The Christian Democrats won 10 seats, while the Social Democrats hung on, losing only four seats, and the pro-business (and pro-crypto) Renew Europe Group lost 23 seats.

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Germans split on digital euro, most don’t know what it is: Survey

Most Germans have never heard of the digital euro and some who knew of it thought it was a cryptocurrency, a central bank survey found.

Half of Germans in a recent survey said they could see themselves using the digital euro despite many not having heard of it or knowing exactly what it is.

Deutsche Bundesbank’s survey of 2,012 people published on June 4 saw 50% say they could either “definitely” or “probably” imagine using the digital euro — the European Central Bank’s pilot central bank digital currency (CBDC) — if it was an additional payment option.

A quarter said they would “definitely not” use it, about the same said they would “probably not” — 1% said they didn’t know.

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Global Crypto Ownership Reaches 562 Million: 6.8% of World Population Now Own and Use Digital Currencies

Global Crypto Ownership Reaches 562 Million: 6.8% of World Population Now Own and Use Digital CurrenciesA new report reveals that 562 million people globally now own digital currencies, an increase from 420 million in 2023, making up 6.8% of the world’s population. Asia is at the forefront of this growth, with North America close behind. Overall, cryptocurrency adoption is rising worldwide, with notable increases seen across all continents. ‘562 Million […]

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Worldcoin faces bans worldwide amid increasing privacy fears

Regulators across the world are banning Worldcoin, which collects biometric data for a small payment of its native cryptocurrency.

The increasing adoption of Worldcoin, an AI-centric identification project with its own cryptocurrency, is alarming privacy advocates and regulators.

According to the project, over 5 million people have already lined up to stare into a silver sphere the size of a bowling ball and scan their irises.

In addition to receiving online ID verification, users are rewarded 25 WLD, worth about $115.

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Crypto Biz: Kraken denies USDT delisting, crypto custody on the rise, and more

This week’s Crypto Biz explores Kraken’s stablecoin plans in Europe, the departure of Grayscale’s CEO, Prometheum’s Ether custody service that treats ETH as a security, and more.

Custody of digital assets has become an increasingly popular business, particularly since the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States.

The latest companies seeking to safeguard assets for institutional investors include Taurus and Fireblocks. While Taurus announced opening an office in Canada in response to a demand for custody and tokenization, Fireblocks is awaiting regulatory approval for a limited-purpose trust company regulated by the New York Department of Financial Services.

Ripple foresees the institutional crypto custody market could reach nearly $10 trillion by 2030.

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