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Tag: MiCA

  • OKX Taps Standard Chartered to Deliver Bank-Level Security for Institutional Investors in Europe

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    OKX has strengthened its European footprint with Standard Chartered.

    OKX has announced the expansion of its partnership with Standard Chartered Bank into the European Economic Area (EEA), as it extended a collaboration that first began in the United Arab Emirates earlier this year. The move introduces OKX’s collateral mirroring programme to institutional clients across Europe, which allows users to hold their assets securely with Standard Chartered, a Global Systemically Important Bank (G-SIB), while maintaining corresponding balances on OKX for trading purposes.

    The arrangement enables institutions to benefit from both bank-grade custody and direct access to digital asset markets, effectively reducing counterparty risk and enhancing trading efficiency.

    OKX Expansion

    With the latest collaboration, Standard Chartered has become the first and only G-SIB to partner directly with a crypto exchange. OKX said the expansion depicts growing regulatory confidence in the model and indicates a push toward aligning crypto market infrastructure with established financial standards. The partnership’s rollout in the EEA is expected to provide institutional clients with a unified framework for secure, compliant, and scalable digital asset management across Europe.

    Standard Chartered’s Global Head of Financing and Securities Services, Margaret Harwood-Jones, said the initiative combines the bank’s existing custody infrastructure with OKX’s regulatory framework to ensure “the highest standards of security and compliance for institutional clients in Europe.”

    The exchange also highlighted that the partnership builds on its long-term commitment to Europe, supported by its Markets in Crypto-Assets (MiCA) license.

    From EU Investigations to US Relaunch

    In March, Bloomberg had reported that OKX’s decentralized trading and self-custody platforms are reportedly under scrutiny by European regulators after being linked to the laundering of $1.5 billion stolen in the Bybit hack by North Korea’s Lazarus Group. The exchange denied the allegations, even as the report suggested that it may risk losing the MiCA license granted earlier this year.

    After regulatory challenges in Europe, OKX made a push to re-establish itself in the United States. In April, the exchange announced it was reopening its US crypto platform and introducing a multi-chain Web3 wallet, following a $505 million settlement with the Department of Justice earlier this year.

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    OKX appointed Roshan Robert as US CEO and set up headquarters in San Jose, California.

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    Chayanika Deka

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  • MiCA’s impact on the future of crypto landscape: expert take

    MiCA’s impact on the future of crypto landscape: expert take

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    Globally, the regulatory landscape for the financial technology sector is becoming increasingly stringent. This has led to the development of intricate legal structures governing the operations of entities such as crypto asset service providers (CASPs), cryptocurrency exchanges, investment firms, forex brokers, banks, and other financial players, especially in Europe.

    Europe’s evolving crypto regulatory landscape

    The regulatory landscape for crypto assets in Europe has undergone significant changes, with the introduction of new frameworks aimed at enhancing consumer protection, financial stability, and innovation. One key development was the Markets in Crypto-Assets Regulation (MiCA), which aims to create a comprehensive regulatory framework for crypto assets within the European Union (EU).

    The Markets in Crypto-Assets Regulation (MiCA) stands as a critical legislative framework in the EU, crafted to navigate the intricate world of crypto assets. It lays down a robust set of guidelines for those participating in the market, aiming to harmonize the rules surrounding the issuance, intermediation, and trading of crypto assets. This includes introducing licensing requirements, standards for business conduct, and regulations to prevent market abuse.

    The primary goal of MiCA is to bring legal clarity to the cryptocurrency industry within the EU region, providing straightforward directives for companies.

    MiCA simplifies the process for obtaining authorization to operate as a crypto-asset service provider (CASP) across the EU, moving away from the patchwork of national permits to a singular, unified system.

    The key requirements for obtaining a license in accordance with MiCA were outlined, emphasizing the authorization process for issuers of digital assets, notification obligations, compliance preparation, and ongoing compliance. According to the guidelines, entities must understand and adhere to regulatory requirements, classify crypto assets correctly, and stay informed about evolving guidelines and legal interpretations.

    The implementation timeline indicated a gradual enforcement of MiCA, with provisions on stablecoins expected to apply from July 2024. Entities within MiCA’s scope were advised to adapt to the new framework within 12-18 months of the regulation’s enforcement.

    “Legal services play a crucial role in assisting CASPs (Crypto Asset Service Providers) with navigating the rapidly evolving legal landscape, aiding in the development of their businesses. While MiCA marks a significant milestone, it’s important to recognize that it’s not the final destination for regulatory changes in the EU.”

    “Legal services play a crucial role in assisting CASPs (Crypto Asset Service Providers) with navigating the rapidly evolving legal landscape, aiding in the development of their businesses. While MiCA marks a significant milestone, it’s important to recognize that it’s not the final destination for regulatory changes in the EU.”

    Mark Gofaizen, senior partner at Gofaizen & Sherle.

    “As consultants and lawyers specializing in crypto, we acknowledge that MiCA offers a legible and transparent regulatory framework under which most CASPs can operate. However, challenges such as rising costs and increasing complexity in processes persist,” Mark Gofaizen, senior partner at a fintech law firm Gofaizen & Sherle, said, commenting on the matter.

    Additionally, he highlighted that regulatory changes in the EU are integral to the transformation of the crypto landscape, signaling the beginning of industry consolidation. While this may lead to a decrease in the number of CASPs over the last decade, it is crucial to recognize that these changes are paving the way for a healthier and more transparent business environment in the long run, Gofaizen believes.

    Gofaizen & Sherle is a fintech law firm, operating in Europe, with physical offices in Estonia and Lithuania. The company also operates in Poland, Germany, the Czech Republic, Canada, the United Arab Emirates, Hong Kong, El Salvador, and other jurisdictions. The company assists with project planning, business registration, license acquisition, and ongoing support tailored to the evolving fintech landscape. Its portfolio includes more than 1000 projects for over 400 clients.

    “We offer our clients a comprehensive range of services, including crypto accounting, reporting, and full legal support for tasks such as opening physical offices,” Mark Gofaizen emphasized that preparing for MiCA is a complex task, extending beyond operational processes to encompass employee training, data handling, and rapid implementation of new business approaches. “Our company takes care of the paperwork, enabling CASPs to focus on their core business activities,” he added.

    Team members 

    Gofaizen & Sherle boasts a diverse array of departments dedicated to meeting the needs of their clientele. These include the Crypto and Blockchain Consulting Department, the FX and iGaming Consulting Department, the Legal Department, the Operations Department, the Business Development Department, the Accounting Department, and the HR Department.

    Leading the team is Mihhail Sherle, serving as senior partner and head of legal. Maksim Gasanbekov holds the position of associate partner and head of sales for the Crypto and Blockchain sector. 

    Leonid Turok serves as senior associate and head of sales for the FX and iGaming sector, while Kiryl Zaremba takes on the role of senior associate and business development manager.

    This article is done in partnership with Gofaizen & Sherle.

    Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.


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    Ogwu Osaemezu Emmanuel

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  • Crypto Winter In Spain? New Taxes Target Digital Assets

    Crypto Winter In Spain? New Taxes Target Digital Assets

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    In a move that could have ripple effects across Europe, Spain is tightening its grip on crypto monitoring and seizing digital assets for tax debts. The Ministry of Finance, led by María Jesús Montero, is spearheading legislative reforms to grant the Spanish Tax Agency enhanced powers to identify and seize crypto holdings from taxpayers with outstanding debts.

    This follows a February 1st decree expanding the entities obligated to report tax information to the Treasury, encompassing banks, savings banks, and even electronic money institutions.

    The measures come amidst Spain’s proactive approach to regulating the digital asset landscape ahead of the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework, set for full implementation in December 2025.

    Key Provisions Of The Crackdown

    The proposed crackdown on cryptocurrency in Spain includes several key provisions aimed at strengthening the government’s ability to regulate and collect taxes in the digital asset space.

    One major aspect of the legislative changes is the expansion of the Tax Agency’s authority, granting it the power to directly identify and seize assets associated with taxpayers having overdue debts.

    Additionally, the February 1st decree widens the scope of entities obligated to report tax-related data to the Treasury. This now includes not only banks, savings banks, and credit cooperatives but also electronic money institutions. This expanded list potentially provides a broader framework for tracking digital currency transactions.

    Spanish residents holding crypto assets on foreign platforms are subject to a mandatory declaration to the tax authorities by the end of March 2024. Initiated on January 1st, 2024, this declaration period requires individuals and corporations to disclose the value of their crypto holdings abroad as of December 31st, 2023.

    Total crypto market cap at $1.61 trillion on the daily chart: TradingView.com

    While all Spanish residents with foreign crypto holdings are required to make a declaration, only those exceeding €50,000 (approximately $54,000) are obliged to declare them for wealth tax purposes.

    Individuals holding their crypto in self-custodied wallets, outside of exchange platforms, must report them through the standard wealth tax form. These measures collectively aim to establish a more robust regulatory framework for cryptocurrency transactions and holdings in Spain.

    Spain At The Forefront Of Crypto Regulation

    Spain’s proactive stance on crypto regulation positions the country as a frontrunner within the European Union. Notably, the country is implementing its own crypto regulatory framework ahead of the EU-wide MiCA framework coming into effect in late 2025. This preemptive approach underscores Spain’s commitment to establishing clear regulations within the crypto space.

    Furthermore, Spanish tax authorities issued over 325,000 warnings in 2023 to residents who failed to declare their crypto holdings, marking a significant increase from the 150,000 warnings issued in 2022. This highlights the government’s growing focus on ensuring compliance within the crypto tax landscape.

    Challenges And Considerations

    While Spain’s efforts to regulate and tax cryptocurrencies are notable, some potential challenges remain. The rapid implementation of these changes might pose regulatory hurdles, requiring careful calibration to ensure effectiveness and minimize unintended consequences.

    Additionally, accurately tracking and seizing self-custodied crypto assets, held outside of exchange platforms, could prove difficult due to the inherent anonymity associated with such wallets.

    Global Implications

    Spain’s move could serve as a precedent for other countries seeking to establish frameworks for monitoring and taxing cryptocurrencies. As the global crypto market continues to evolve, Spain’s proactive approach offers valuable insights for policymakers worldwide navigating the complexities of regulating this dynamic asset class.

    Featured image from Pixabay, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Christian Encila

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  • EU Drafts Paper Regarding Exceptions to MiCA Regulation

    EU Drafts Paper Regarding Exceptions to MiCA Regulation

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    Last year, the European Union unanimously voted for the Markets in Crypto Assets (MiCA) bill, considered by most to be the first comprehensive piece of legislation addressing the crypto industry as a whole.

    MiCA is, in itself, part of a larger set of financial laws known as DORA – but it has also given many crypto companies a reason to consider moving the bulk of their operations across the ocean.

    Several Adjustments to The Bill

    Although MiCA was published back in June 2023, there have already been two consultation sessions regarding the bill – with another due in April – before the first part of the legislation goes into effect in June 2024. The other provisions are expected to come into effect in December 2024.

    The proposed exceptions would allow European customers more freedom while still protecting those less tech-savvy.

    Allowing “Reverse Solicitation”

    The paper submitted by the European Securities and Markets Authority (ESMA) has taken into consideration prior feedback regarding companies operating outside the EU and has decided to make exceptions for them when necessary.

    Whereas previously, the authority intended to bar non-EU companies from offering crypto assets and services to EU citizens, the new provision will allow them to do so if reverse solicitation – meaning an EU citizen explicitly requests either of these to a provider – occurs.

    This would allow experienced crypto investors looking for niche offerings more ability to invest legally while also protecting inexperienced investors from the possible consequences of dealing with businesses where legal recourse may be more difficult.

    “ESMA previously underlined that the provision of crypto-asset services or activities by a third-country firm is strictly limited under MiCA to cases where such service is initiated at the own exclusive initiative of a client. This exemption should be understood as very narrowly framed […] and it cannot be assumed, nor exploited to circumvent MiCA. ESMA, and national competent authorities, through their supervisory and enforcement powers, will take all necessary measures to actively protect EU-based investors and MiCA-compliant crypto-asset service providers from undue incursions.”

    The ESMA recommends that investors read the document and submit any requests regarding it by the 29th of April, when regulators will discuss it.

    The regulator is also requesting feedback on the possible qualification of crypto assets as financial instruments – defined as a monetary contract. Should a crypto asset qualify as a monetary contract, it would no longer be subject to MiCA, instead falling under the regulatory purview of another bill known as MiFID II.

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    Cristian Lipciuc

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