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xHype is a project MiCA compliant. That means we are safe qhen MiCa legal framework starts. To understand a little more about what is the MiCA Law, you can read the following explanation:
The MiCA Law is the EU's first comprehensive regulation for cryptocurrencies. Approved on October 10, 2022, the Law consists of over 100 articles addressing topics such as money laundering, KYC, consumer and investor protection, the responsibility of cryptocurrency companies, and stablecoins.
Following its approval, it is expected that EU member states will have a preparation period until 2024 to align national regulatory frameworks with the requirements of MiCA. This would make the EU a space with uniform regulation regarding cryptocurrencies.
In general terms, the objective of MiCA is to regulate the issuance, public offering, and trading of crypto assets. As currently drafted, the Law establishes a comprehensive framework that sets the requirements for the operation and governance of major crypto asset issuers and Contracted Application Service Providers (CASP). It also clarifies the framework for the protection of crypto asset holders and other clients of service providers.
CASP would not need permission from each EU country to offer their services in jurisdictions within the EU once MiCA becomes applicable. This significantly reduces the regulatory burden on institutions, allowing any service provider to register in any EU country and operate freely within the EU's jurisdiction.
Furthermore, MiCA allows competent authorities of member states to supervise CASP, ensuring compliance with the requirements set forth in MiCA to operate. At the same time, it establishes the possibility of stricter control over CASP with over 15 million users. These CASP would be classified as "significant CASP" and subject to much stricter control.
In addition to this, the European Securities and Markets Authority (ESMA) will have intervention powers to prohibit or restrict the services of a CASP if there are reasonable doubts about its operations. Specifically, ESMA can use its intervention powers if the CASP is harming market integrity, financial stability, or investor protection.