CRYPTOCURRENCY → GLOBAL REGULATIONS Flashcards
What is the MICA regulation?
The Markets in Crypto Assets regulation. It’s a set of rules introduced by the European Union in 2023 to govern the cryptocurrency market.
What are the primary goals of the MICA regulation?
Protect investors from scams and fraudulent activities.
Combat money laundering, tax evasion, and the financing of terrorism using cryptocurrencies.
Does the MICA regulation apply to Central Bank Digital Currencies (CBDCs)?
No, the MICA regulation was specifically designed for cryptocurrencies and does not extend to CBDCs.
Does the MICA regulation apply to Non-Fungible Tokens (NFTs)?
No, NFTs are also currently outside the scope of the MICA regulation.
What is the CARF Framework?
A global standard created by the OECD (Organisation for Economic Co-operation and Development) in 2022.
Designed to increase transparency in crypto-asset transactions.
Aims to facilitate international tax reporting related to crypto assets.
What is the goal of the CARF Framework?
To combat tax evasion using crypto assets.
To ensure crypto assets are taxed fairly, consistently, and transparently across jurisdictions.
How does the CARF Framework achieve its goals?
Requires Crypto-Asset Service Providers (CASPs) to collect customer information.
Mandates CASPs to report crypto-asset transactions to tax authorities.
Facilitates the exchange of this information between tax authorities around the world.
Is the CARF the same as the EU’s MiCA Regulation?
No, but they are similar.
Both aim to regulate crypto assets for greater financial stability and investor protection.
CARF primarily focuses on tax reporting, while MiCA has a broader regulatory scope.
Give two examples of Crypto-Asset Service Providers (CASPs)
Cryptocurrency exchanges
Platforms that provide crypto custody services.
