European regulators have issued new guidelines for the classification of digital assets under MiCA

Three European regulators - the European Banking Authority, the European Insurance and Pensions Authority and the European Securities and Markets Authority - have released a joint document outlining future standards and classification of digital assets under the EU Cryptocurrency Regulation Act (MiCA).

The document includes methodologies for determining whether a digital asset falls under MiCA by asking who is the issuer of a token, whether it is blockchain-based or a financial derivative.

According to regulators, a single cryptoasset classifier will help market participants determine whether a token meets MiCA standards or whether it can be classified as another type of asset, such as an electronic money token (EMT) or an asset-linked token (ART).

Circle's EU strategy and policy director Patrick Hansen and chief strategy officer Dante Disparte said the introduction of MiCA will significantly transform the market in the coming year.