Definition ∞ The MiCA Prudential Framework refers to the specific set of regulatory requirements under the European Union’s Markets in Crypto-Assets (MiCA) regulation that address the financial soundness of crypto-asset service providers. This framework imposes rules on capital adequacy, risk management, and governance to ensure the stability and reliability of entities operating with digital assets. It aims to protect consumers and maintain financial system integrity. Compliance with MiCA’s prudential rules is mandatory for authorized firms.
Context ∞ The MiCA Prudential Framework is a central element of the EU’s efforts to regulate the crypto asset market, creating a unified approach across member states. Current discussions involve the practical implementation of these prudential requirements, particularly for stablecoin issuers and other significant crypto-asset service providers. The framework is seen as a key step toward integrating digital assets into the broader financial system, offering a clearer operating environment for businesses.
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