On Tuesday, Coinbase took bold steps toward stronger regulatory compliance in the EU by announcing a partnership with Crypto Risk Metrics, a German provider of compliance and data solutions.
Earlier in June, Coinbase secured its MiCA license from Luxembourg, allowing the exchange to offer the full range of its products to all EU member states.
MiCA Obligations Might Not Yet Be Fully Understood
Andrea Pantaleo, Head of Crypto Web3 & Fintech Sector at DLA Piper, explained:
“If you are an offeror or a trading platform offering crypto-assets – such as most crypto exchanges – MiCAR requires a MiCAR-compliant white paper before you can legally operate within the European Union. Unfortunately, not everyone in the industry fully understands these obligations yet, but the situation is improving each day.”
The MiCAR white paper rules aim to enhance consumer protection and provide a clear overview of the asset in question. In the past, regulators debated how these requirements apply to different entities.
However, ESMA clarified this in its public statement titled “On the provision of certain crypto-asset services in relation to non-MiCA compliant ARTs and EMTs”.
“Before the ESMA statement, some companies found loopholes due to vague wording in the MiCAR regulation. That’s no longer an option. We’ll probably see the first enforcement actions soon,” Pantaleo added.
Crypto Risk Metrics Helps Clients Stay Compliant
When asked about the complexity of MiCAR and the questions required in the white papers, Tim Zölitz, CEO of Crypto Risk Metrics, replied:
“We don’t judge, we just try our best to protect our customers and make sure they act legally compliant. Personally, I understand some of the criticism. I even agree that certain MiCAR provisions place more burden on crypto-asset service providers in Europe than in other regions. But all regulation has its pros and cons. By using our services, companies can focus on what they do best while we make sure they comply with the law. That’s what we strive for.”
The concept seems to be working. Clients of Crypto Risk Metrics include Kraken, Bitpanda, OKX, Bitstamp, Clearstream, and Crypto Finance (Deutschland), which is part of the German stock exchange. Other well-known names also rely on their services.
Seems like the old saying still holds true:
“USA innovates, China replicates, Europe regulates.”
Since coming into effect last year, the EU has approved 53 crypto firms under the MiCA regulations. However, major industry players like Binance and Tether missed out on the license.
The majority of these licenses have been granted by Germany. Yet, regulators have consistently debated the complexity of the MiCA.
The post Coinbase Raises the Bar for EU Compliance with MiCAR-Compliant White Papers appeared first on BeInCrypto.
