Catenaa, Saturday, November 30, 2024 – Crypto businesses in the European market may face suspension unless granted more time to comply with the European Union’s new Markets in Crypto-Assets (MiCA) regulation, valued at nearly $1 trillion.
A letter sent to the European Securities and Markets Authority (ESMA) by several blockchain trade associations warns that failing to extend the deadline could damage the market’s reputation and harm customer interests.
The letter, signed by the European Crypto Initiative, Blockchain for Europe, the Electronic Money Association, and the International Association for Trusted Blockchain Applications, highlights the potential financial impact across EU member states if compliance with MiCA is not achieved on time.
MiCA’s next phase, set for implementation on December 30, introduces new regulations for crypto asset service providers (CASPs), including exchanges, wallet providers, and custodians.
While MiCA is seen as a positive step for the industry’s growth in Europe, representatives express concerns over the slow regulatory process, which could hinder firms’ ability to capitalize on the new opportunities.
Despite ESMA finalizing MiCA’s implementing rules, CASPs cannot authorize firms until state regulators issue their authorization requirements. With limited time before the December 30 deadline, many firms may not be able to meet compliance.
Although MiCA allows for a transition period of up to 18 months, the trade associations argue this period is too short and may force firms to halt cross-border services.
Some EU countries have chosen shorter grace periods, further complicating the process. The associations are urging ESMA to extend the deadline until June 30 to reduce regulatory uncertainty and allow firms to continue offering services during the transition.
The DLT Science Foundation (DFS) has launched the MiCA Crypto Alliance, a new industry group aimed at helping cryptocurrency firms comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation. Established on September 18, 2024, the alliance includes major players like Hedera, Ripple, and the Aptos Foundation.
