How the MiCA regulation and Travel Rule will change the use of crypto assets in the Financial Sector
After a long period of debate, the EU has approved the MiCA regulation, focused on the blockchain sector and cryptoassets in the EU, and the Travel Rule. This is another step in the digital revolution of the sector, making digital finance available to European consumers and businesses.
On 19 and 20 April, the European Parliament debated and voted on the MiCA Regulation, which is part of the legal framework to regulate the blockchain sector and crypto assets in the EU. In addition, the Travel Rule for crypto assets was approved, which establishes that any transaction exceeding a certain limit must include the customer's personal information. MiCA will take effect in May in all EU states and will be applicable in the last quarter of 2024, with a particular focus on investor protection, market integrity, legal security and promotion of innovation.
From the standpoint of Prosegur Crypto, these are some of the key aspects of the regulations that will drive a revolution in crypto assets and in the financial sector:
- MiCA sets clear requirements for the authorisation and management of custodians and other cryptocurrency service providers in the EU, to ensure the protection of customers' assets, which is a positive sign for the market and investors.
- The Travel Rule establishes defined bases for the identification and verification of clients in cryptoasset transfers, which ensures transparency and prevents fraudulent use.
- Crypto asset service providers will be required to obtain licences to operate in Europe and comply with the requirements established in the regulation under a new supervisory framework similar to the one already established for the securities markets.
- Custodians must establish adequate security measures to protect assets in the custody of investors and segregate the custodian's assets and their own assets.
- The custodians will be responsible for the loss or damage of the assets in custody and will be obliged to make a full return when required by the client.
- Traditional financial institutions will be enabled to operate directly with crypto assets, and they are already working on strategies and savings and investment products based on cryptocurrencies.
"La tecnología blockchain se ha convertido en una herramienta fundamental en el ámbito de la seguridad, y en Prosegur Crypto estamos comprometidos en ofrecer soluciones innovadoras y eficaces para proteger los activos digitales de nuestros clientes".
Prosegur Crypto has a cold custody service (Crypto Bunker) that combines the highest standards in both technological security and physical security. This service allows the passwords to be stored and disconnected from the network in a space with physical security equivalent to the custody of physical assets such as money or gold.
According to José Ángel Fernández Freire, Director of Innovation at Prosegur Cash: "Blockchain technology has become a crucial tool in the field of security, and at Prosegur Crypto we are committed to offering innovative and effective solutions to protect our clients' digital assets. We are convinced that crypto assets and blockchain technology have great future business potential and our company is spearheading this digital revolution."