Amsterdam-based institutional-grade service provider moving towards MiCA regulation.
Hyphe, the digital asset liquidity provider for financial institutions, has received a certificate of compliance to ISO 27001 Information Security Management by internationally-renowned certification body, BSI Group. The certification reinforces Hyphe’s commitment to the highest security standards ahead of Europe’s new Markets in Crypto Assets (MiCA) regulation.
Hyphe’s ISO 27001 certification covers its core activities in servicing digital currency trading and was received after a successful external audit of its policies, processes, documentation and information security measures. ISO 27001 is recognised as a global standard for information security management and complements Hyphe’s registration with the Dutch central bank (DNB).
Dolf Diederichsen, Co-founder and CEO of Hyphe, says: “We’re very happy to receive this certification from BSI Group. It recognises all of our hard work in protecting data and managing risk and compliance within information security. As a fintech in the exciting, and growing space of distributed ledger technology (DLT), ISO 27001 certification provides further reassurance to our institutional clients that Hyphe’s systems are robust. This is even more important and relevant as the digital asset ecosystem responds to various shockwaves and gets ready for MiCA regulation.”
Getting ready for MiCA regulation
MiCA stands for the Markets in Crypto-Assets Regulation. It is a regulatory framework proposed by the European Commission to provide a comprehensive set of rules for crypto-assets and related activities within the European Union (EU). MiCA aims to establish a harmonized and transparent regulatory framework to enhance investor protection, market integrity, and financial stability in the rapidly evolving field of cryptocurrencies and digital assets.
Key aspects of the MiCA regulation include:
Classification of Crypto-Assets: MiCA introduces a classification system for crypto-assets. It categorizes them into three types: e-money tokens, asset-referenced tokens, and utility tokens. This classification helps determine the regulatory requirements applicable to each type.
Authorization and Supervision: MiCA proposes a mandatory authorization regime for issuers of significant crypto-assets, such as stablecoins, within the EU. It establishes a single EU-wide regulatory framework to ensure consistent supervision and oversight of these issuers.
Consumer Protection: The regulation aims to enhance consumer protection by setting out rules for the issuance and marketing of crypto-assets. It introduces requirements for information disclosure, transparency, and conflict of interest management to ensure that investors are adequately informed about the risks associated with crypto-assets.
Market Integrity and Investor Safeguards: MiCA establishes rules to prevent market abuse, market manipulation, and insider trading in the crypto-asset market. It introduces measures to ensure the integrity of trading platforms, custody providers, and other intermediaries operating in the crypto space.
Stablecoin Regulation: MiCA specifically addresses stablecoins, which are crypto-assets designed to maintain a stable value by pegging them to a specific asset, currency, or basket of assets. The regulation sets out stringent requirements for issuers of significant stablecoins, including capital and reserve requirements, governance arrangements, and redemption rights.
Cross-Border Passporting: MiCA introduces a passport mechanism, allowing issuers of crypto-assets authorized in one EU member state to provide their services across the entire EU. This aims to foster cross-border activities and create a single market for crypto-assets within the EU.
MiCA is part of the European Commission’s broader digital finance strategy and efforts to create a well-regulated and innovative digital finance ecosystem. The regulation is currently under review and is expected to be implemented in the coming years, subject to approval by the European Parliament and Council.
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