The European Parliament has approved the first set of EU regulations called Markets in Crypto Assets (MiCA), designed to prevent money laundering, track transfers of digital assets, and address customer protection and supervision.
According to the statement by the National Security and Stock Market Commission of Ukraine, MiCA will encompass crypto assets that are not covered by existing financial services legislation, and Ukraine is likely to be among the first countries to integrate these provisions into national law. Key provisions of the regulation include transparency, disclosure, authorization, and supervision of transactions for those involved in the issuance and sale of crypto-assets, including asset-reference tokens and e-money tokens.
Under the new framework, customers will have a better understanding of the risks, costs, and fees associated with their transactions, and public offerings of crypto assets will be regulated to enhance market integrity and financial stability.
The regulation also contains provisions to prevent market manipulation and combat money laundering, terrorist financing, and other illicit activities. To mitigate money laundering risks, the European Securities and Markets Authority will establish a public register of non-compliant crypto asset service providers operating in the EU without authorization.
Significant service providers will be required to disclose their energy consumption to reduce the high carbon footprint of cryptocurrencies. The texts must be published in the EU Official Journal before being officially approved by the Council and would take effect twenty days after publication.
On November 28, 2022, the National Bank of Ukraine (NBU) published a paper proposing the e-hryvnia, a central bank digital currency (CBDC) intended to replace both cash and non-cash versions of Ukraine’s national currency. However, the e-hryvnia, also known as the digital hryvnia, is still in the concept stage, and its implementation is yet to be determined.
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