Regulation
MiCA Deadline in 3 Days, Only 9% of Companies Fully Prepared: Report — TradingView News
A recent report highlights the impending impact of the European Union’s Markets in Crypto-Assets (MiCA) Regulation on the oversight of cryptocurrency trading. Commissioned by Eventus, the report, “The Impact of MiCA on Cryptocurrency Market Oversight: Perspectives and Challenges,” draws on interviews with senior executives from 68 companies involved in cryptocurrency trading, conducted by Acuiti.
MiCA Compliance: Progress and Challenges
MiCA, a pioneering regulatory framework within a major financial jurisdiction, is sparking a surge in efforts to establish comprehensive market surveillance systems across the sector. The regulation, similar to the EU’s Market Abuse Regulation (MAR), imposes stringent requirements on market participants, ushering in new operational standards. Ross Lancaster, Head of Research at Acuiti, source: LinkedIn
According to the survey results, only 9% of the companies surveyed are fully compliant with the MiCA requirements, and 25% of them have not yet started preparing for it. As the MiCA implementation deadline approaches at the end of the year, companies are urged to quickly determine their regulatory scope and take compliance measures.
Despite challenges such as identifying appropriate third-party software providers and managing compliance costs, the report finds increasing sophistication in market surveillance practices. Even among companies initially excluded from the scope of MiCA, 57% are already using robust monitoring systems.
“For businesses not already subject to MIFID II, MiCA will provide a significant operational benefit to becoming compliant, and it is no surprise that we have seen businesses turn to third party providers to help them with their preparations,” Ross said. Lancaster, head of research at Acuiti.
“There is a relative lack of awareness in some sectors of the market about who is affected, which will need to be addressed if businesses are to have time to prepare for compliance.”
Only 9% of companies are ready to adopt European cryptocurrency regulations, according to a report by Acuiti
The EU’s Markets in Crypto-Assets (MiCA) regulation is set to transform the oversight of crypto trading, but the industry’s preparedness varies widely. A recent study by Acuiti, commissioned by Eventus, found that only 9% of crypto-assets are regulated.
Outsourcing Trends and Compliance Costs
Travis Schwab, CEO of Eventus, Source: LinkedIn
The study highlights consultations on the final MiCA technical standards, revealing that 25% of affected companies have not yet started preparations, while others are at various stages of preparation. Notably, 64% of companies intend to outsource systems development, anticipating challenges related to vendor selection and resource allocation.
The primary concerns for businesses anticipating the impact of MiCA are compliance costs and finding qualified personnel, reflecting the industry’s broader adjustments to regulatory mandates. As regulations evolve, industry leaders must adapt to new MiCA rules.
Travis Schwab, CEO of Eventus, said: “We invested significantly several years ago to ensure we could meet the needs of this industry, including the ability to manage real-time alert generation covering billions of messages per day, 24/7. The regulation in the EU is just the beginning of the new regulatory guidelines we expect to see in jurisdictions around the world in the years to come.”