EU regulators have issued new guidelines allowing relevant market participants to classify cryptocurrencies and digital assets under the Markets in Crypto-Assets Regulation (MiCAR), reports Cointelegraph.
On 12 July, three European Supervisory Authorities — the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority — released a consultation paper intended to standardize and clarify the classification of digital assets across the region.
The newly released guidelines provide a structured approach to classifying various types of crypto assets.
This includes determining whether a token falls under MiCAR through question-based prompts, such as who the issuer is, whether it is based on the blockchain, or whether it is a type of financial instrument.
It also helps determine whether the token in question qualifies as a standard crypto asset under MiCAR or if it could be classified as another type of asset, such as an electronic money token (EMT) or an asset-referenced token (ART).
Issuers of ARTs must include a legal opinion in their white papers, clearly explaining the classification of these tokens. The opinion should confirm that the tokens are neither EMTs nor any other type of crypto asset excluded from the scope of MiCAR.
For crypto assets that do not fall under the categories of ARTs or EMTs, the white papers must include an explanation outlining their classification.
The guidelines are inviting market stakeholders to submit any comments related to the consultation paper by mid-October, with a virtual hearing to be held on 23 September.
Patrick Hansen, senior director of EU strategy and policy at Circle, posted on X, calling the guidelines “very helpful” and said that he has already seen “many people getting token classifications wrong under MiCAR.”
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