Regulation
Study Finds 91% of Cryptocurrency Businesses Unprepared for EU Regulation
MiCA, the European Union’s regulation of crypto asset markets, is set to reshape the cryptocurrency industry, but a new study reveals an alarming lack of preparedness among affected companies. The report, conducted by Acuiti and commissioned by Eventus, shows that 91% of crypto companies are not ready for this landmark regulation.
Set to introduce one of the first comprehensive regulatory frameworks for crypto trading in a major financial market, the impending implementation of MiCA highlights the urgent need for companies to accelerate their compliance efforts. The findings underscore the potential for significant operational and financial consequences for companies that fail to adapt in time.
MiCA Compliance Crisis: Lessons and Challenges from the Acuiti Report
The cryptocurrency industry appears to be facing a compliance crisis as it prepares for the EU’s Markets in Crypto Assets (MiCA) regulation, according to a surprising study. A report commissioned by Eventus and conducted by Acuiti sheds light on the industry’s preparedness for the landmark regulation.
The study, titled “The Impact of Mica “On Cryptocurrency Market Surveillance: Prospects and Challenges,” surveyed senior executives of 68 companies involved in cryptocurrency trading. The results are worrying: only 9% of companies within the scope of MiCA say they are fully prepared for the new regulations. Even more alarming, a quarter of the companies surveyed have not even started their preparations.
MiCA, which is expected to come into force at the end of this year, is poised to become one of the first comprehensive regulatory frameworks for cryptocurrency trading in a major financial jurisdiction. Its market surveillance requirements, which are largely inspired by the EU Market Abuse Regulation (MAR) is expected to pose significant operational challenges, particularly for crypto-native businesses.
The report also highlights a growing trend toward outsourcing compliance needs. A significant 64% of businesses plan to turn to third-party software vendors to meet new regulatory requirements. However, finding suitable suppliers remains a major obstacle for many businesses. Travis Schwab, CEO of Eventus, highlighted the unique challenges digital assets present for business monitoring and emphasized the importance of robust systems that can handle real-time alerts.
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Industry Responses and Strategic Partnerships
In anticipation of MiCA, several companies are taking proactive steps to ensure compliance. Financial services provider and stablecoin issuer Circle announces a strategic partnership with Adan, a leading association that connects professionals in the digital assets and blockchain sector in France and Europe. This partnership aims to prepare the official launch of the MiCA regulatory framework in Europe.
Additionally, Uphold, a crypto exchange headquartered in New York and a Ripple On-Demand Liquidity (ODL) Partnerhas announced its intention to remove support for several stablecoins. This decision is a direct response to the upcoming MiCA regulation that is expected to come into force in the European Economic Area (EEA).
These developments demonstrate the urgency and widespread impact of MiCA, as businesses strive to align with the new regulatory landscape.
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