The Markets in Crypto-Assets (MiCA) regulatory changes are expected to transform the crypto industry in 2025. To ensure compliance and provide a smooth user experience, we would like to highlight the pivotal aspects.
The Travel Rule
The new Travel Rule will directly impact cryptocurrency transactions. In case of higher risk cryptocurrency transactions, the recipient and the paying party will be obligated to exchange additional data*. For instance, if the transaction between "Coingate" and "Company" is settled, both sides will know who the sender and the recipient are.
*Customers' data will be stored in accordance with all GDPR regulations.
What data will be used in the exchange?
For each transaction, the following information about both the sender and recipient might be required:
Sender's Information: full name, account address, and transaction details.
Recipient's Information: full name, account address, and additional transaction details.
What transactions will be affected by new regulations?
From January 1 st., 2025, this regulation will be valid for all higher risk transactions.
No action is needed if you’re making a compliant transaction with a regulated party. For self-hosted wallet transactions, you’ll need to provide proof of ownership for the external crypto wallet during the checkout.
What additional information will we request?
Your payment experience will remain largely the same, with one adjustment: along with your email address, Coingate will now ask for some personal information, similar to standard payment methods.
From individuals using cryptocurrency, Coingate will ask their name, country of residence, and date of birth.
From businesses making B2B payments, Coingate will request their company's name, incorporation country, and the name of the representative making the payment.
If your payment exceeds certain thresholds, Coingate may ask for more information on the payment page or via email.
Once data has been provided, you should not receive repeated requests unless the payer's address or wallet is changed.
Other Changes MiCA Brings
Not only that, but the MiCA regulations are also taking effect simultaneously.
Markets in Crypto-Assets (MiCA) is the European Union’s new set of regulations for crypto-assets, which was established to provide a safer and more regulated environment for crypto-assets. Here are the latest significant regulations you must be informed about:
- Unified Regulations Across the EU
MiCA establishes a unified set of regulations for all EU member states that companies must follow. It means that once a service provider, like Cherry Servers, is authorized in one country, it can operate across the entire EU. This simplifies business navigation of international regulations, encouraging companies to see crypto service providers as standard financial instruments.
- Improved Consumers Protection
It promotes clear and transparent communication about the crypto assets you use, ensuring that our customers are well-informed of the risks and characteristics associated with these assets. The Travel Rule is one example.
- More Rules for Stablecoins
Stablecoins are digital assets pegged to stable assets, such as fiat currency. Under MiCA, these coins face more stringent regulations. Issuers must maintain adequate reserves and ensure that stablecoins can be redeemed anytime.
- Market Integrity Measures
The Markets in Crypto-Assets Regulation (MiCA) introduces rules against insider trading and market manipulation to prevent market abuse. Companies, including Coingate, implement and upgrade these measures to ensure a fair and transparent marketplace, protecting your business from potential risks associated with fraudulent activities.
- Improved Supervision
EU regulators must license crypto-asset service providers like Coingate. This ensures compliance with high-security standards, giving clients peace of mind when making crypto payments.
If you have any questions, please contact us through the email: sales@cherryservers.com