Europe prepares for MiCA implementation

10:46 a.m. ▪ 3 min reading ▪ by Luc Jose A.

European Union member states are preparing to implement MiCA. This landmark legislation requires national regulators to license and supervise service providers. MiCA is an EU level regulation. However, countries may implement different technical standards, which requires special attention on their part.

Europe mobilizes for the entry into force of MiCA

In June, the specialized rules of Crypto-Asset Markets regulation (MiCA) for stablecoin issuers will come into effect. These will be followed by licensing and other requirements for crypto companies in December. MiCA was voted on in 2023 after three years of development. However, its implementation presents challenges for each Member State.

Mica normally grants a transition period of 18 months. However, in some countries this grace period should only last 12 months.

National adaptation of national regulations to MiCA

European countries are at different stages of transposing MiCA into their local law. This involves choosing the National Competent Authorities (CNAs) to oversee cryptography. Some countries, such as France and Croatia, have already appointed their regulators, while others, such as Slovakia and Hungary, have entrusted this responsibility to their central banks.

National regulators will also need to manage grandfathering periods and adapt to the licensing requirements imposed by MiCA. While some countries are actively preparing by mobilizing additional resources, others may face difficulties due to the fragmentation and differences between European cryptocurrency markets. However, experts believe that there is still time to finalize everything.

For some specialists, like Sophie Lessar, lawyer at DLA Piper, the MiCA will take effect on the agreed date. For her, this is a European regulation on cryptography and no national regulator can delay its entry into force. She adds that close cooperation between different EU member states will be necessary for successful implementation.

Implementing MiCA marks an important milestone in crypto regulation in Europe, but it will require close cooperation between member states and continued adaptation to emerging challenges in the sector.

Maximize your Cointribune experience with our “Read to Earn” program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning benefits.

Click here to join “Read to Earn” and turn your passion for crypto into rewards!

Luc José A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.

DISCLAIMER

The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.

Fuente