New Guidance on European Financial Regulations
A range of new guidance and updates concerning European financial regulations has been announced, set to impact various sectors, especially crowdfunding and crypto-assets. The European Union is focusing on enhancing transparency and compliance in financial reporting and service operations.
Key Updates and Implementation Timeline
As part of this initiative, a comprehensive set of questions and answers (Q&As) has been released, expected to be in effect from January 1, 2027. This includes clarifications on how International Financial Reporting Standards (IFRS) interact with Alternative Performance Measures (APMs), particularly in presenting financial results both within financial statements and separately.
Changes in Equity Crowdfunding and Crypto-Assets
In the realm of equity crowdfunding, changes regarding fiduciary structures emphasize the need for clarity on withdrawal demands as specified under the EU’s Markets in Crypto-Assets Regulation (MiCA). This regulation also encompasses various aspects involving crypto-asset service providers (CASPs), such as defining requirements when operating trading platforms and ensuring compliance with capital obligations.
Notably, the recent updates address how cash payouts in traditional currencies are handled by CASPs, along with the interactions between crypto offers and equity placements.
Regulatory Enhancements and Oversight
Moreover, the European Market Infrastructure Regulation (EMIR), which governs OTC derivatives, has introduced an article that redefines the obligations for central counterparties, enhancing the oversight of financial institutions.
Furthermore, significant attention is being directed at ensuring all service providers demonstrate stress testing capabilities and accurate calculations related to their representativeness obligations. As financial markets continue to evolve, these announcements signify a concerted effort by the EU to ensure that businesses engage in practices that promote stability, transparency, and accountability across their operations.
