Bluprynt, a pioneering crypto disclosure company, has launched new standards aimed at helping token issuers comply with the European Union's regulations as authorities navigate the complexities of the digital asset landscape.
According to Dr. Christopher Brummer, CEO of Bluprynt, the initiative was inspired by the need for clearer compliance pathways, particularly in light of the EU's Markets in Crypto Assets regulation, known as MiCA. Brummer, who is also a professor at Georgetown Law, emphasizes that the objective is to simplify the compliance process for token issuers.
MiCA, overseen by the European Securities and Markets Authority (ESMA), was approved by the European Parliament in April 2023 and is being implemented in phases. Under these regulations, token issuers are required to provide specific disclosures through machine-readable whitepapers.
To aid in this process, Bluprynt has developed a comprehensive taxonomy that facilitates the compliance journey for token issuers. Brummer likens this taxonomy to tax filing software, which streamlines the compilation of necessary information.
Brummer plans to share these new standards with ESMA Chair Verena Ross, demonstrating Bluprynt's commitment to enhancing the regulatory framework.
Currently, the crypto industry faces challenges in investor communication due to a lack of regulated channels. Traditional markets utilize structured reports, while crypto relies on platforms like X (formerly Twitter), Discord, and Telegram, which can undermine trust and liquidity.
Brummer notes that legacy whitepapers are often poorly constructed, filled with jargon, and not conducive to clear communication. The EU's requirement to use whitepapers for disclosures presents both a challenge and an opportunity for improvement.
As the EU moves forward with MiCA, the U.S. is also developing its regulatory framework for crypto. Recent legislative proposals aim to clarify the jurisdiction of the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission over digital assets.
Brummer describes MiCA as a "glass half full," noting that while it establishes rules, many important details remain unresolved. In contrast, he states that the U.S. lacks even the basic framework for effective regulation.
Founded in late 2023, Bluprynt has attracted notable investors, including Mark Cuban and Dan Schulman, and continues to push for innovation in the crypto compliance space.
