Regulation
MiCA deadline is 3 days away, only 9% of businesses fully prepared: report
A recent report highlights the looming impact of the European Union’s Markets in Crypto-Asset (MiCA) Regulation on the oversight of cryptocurrency trading. Commissioned by Eventus, the report, “The Impact of MiCA on Cryptocurrency Market Surveillance: Perspectives and Challenges,” draws on interviews with senior executives from 68 companies involved in cryptocurrency trading, led by Acuiti.
MiCA, a pioneering regulatory framework within a major financial jurisdiction, is spurring a surge in efforts to establish comprehensive market surveillance systems across the industry. The regulation, similar to the EU market abuse regulations, Regulation (MAR) imposes strict requirements on market participants, ushering in new operational standards.
Ross Lancaster Head of Research at Acuiti, Source: LinkedIn
According to the results, only 9% of the surveyed companies fully comply with the MiCA requirements, and 25% have not yet started preparations. As Mica With the implementation deadline fast approaching (end of year), companies are encouraged to quickly determine their regulatory scope and take compliance measures.
Despite challenges, such as identifying suitable third-party software providers and managing compliance costs, the report notes a growing sophistication in market surveillance practices. Even among companies initially excluded from the scope of MiCA, 57% already employ robust surveillance systems.
“For businesses not yet operating under MIFID II, MiCA will represent a significant operational effort to comply, and it is no surprise that we have seen businesses turn to third-party providers to help with their preparations said Ross 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.”
Outsourcing Trends and Compliance Costs
Travis Schwab, CEO of Eventus, Source: LinkedIn
The study highlights consultations on MiCA’s final technical standards, revealing that 25% of affected companies have not yet started their preparations, while others are at various stages of preparation. It is worth noting that 64% of companies intend to outsource their systems development, anticipating challenges related to vendor selection and resource allocation.
Key concerns for businesses anticipating the impact of MiCA include
compliance Costs and the search for qualified personnel reflect broader industry 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.”
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, a pioneering regulatory framework within a major financial jurisdiction, is sparking an intensification of efforts to establish comprehensive market surveillance systems across the sector. The regulation, similar to the EU’s market abuse Regulation (MAR), imposes strict requirements on market players, paving the way for new operational standards.
Ross Lancaster, Director of Research at Acuiti, source: LinkedIn
According to the results, only 9% of surveyed companies are fully complying with MiCA requirements, and 25% have not yet started preparations. As The MiCA With the implementation deadline approaching at the end of the year, businesses are encouraged to quickly review their regulatory scope and take compliance actions.
Despite challenges such as identifying suitable 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% already have robust surveillance systems in place.
“For businesses not yet operating under MIFID II, MiCA will represent a significant operational effort to comply, and it is no surprise that we have seen businesses turn to third-party providers to help with their preparations said Ross Lancaster, Head of Research at Acuiti.
“There is a relative lack of awareness in some sectors of the market about who is affected, an issue that will need to be addressed if businesses are to have time to prepare for compliance.”
Outsourcing Trends and Compliance Costs
Travis Schwab, CEO of Eventus, Source: LinkedIn
The study highlights consultations on MiCA’s final technical standards, revealing that 25% of affected companies have not yet started their preparations, while others are at various stages of preparation. It is worth noting that 64% of companies intend to outsource their systems development, anticipating challenges related to vendor selection and resource allocation.
Key concerns for companies anticipating the impact of MiCA include:
compliance Costs and the search for qualified personnel reflect the broader adjustments the industry is making to regulatory mandates. As regulations evolve, industry leaders must adapt to the 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 billion messages per day, 24/7. Regulation in the EU is just the beginning of the new regulatory directives we expect to see in jurisdictions around the world in the years to come. »