The Market in Crypto Assets or MiCA will come into effect in December 2024. Chainalysis’ E.U. policy head pointed out the prior preparations required in light of this development. The Market in Crypto Assets will make the European Union a pioneer jurisdiction for presenting a comprehensive regulatory framework for the crypto industry. Janet Ho advised crypto entities to be proactive in adapting to the regulations.
Preparations Required by the Crypto Firms to Embrace MiCA
On June 9, 2023, the Market in Crypto Assets regulations were published in the European Union’s official journal OJEU. This event has started a countdown, creating obligations for the Crypto Assets Service Providers (CASPs) and stablecoin issuers operating in the region.
The regulations will become law on June 29 of this year, but shall come into effect only on the same date in 2024. Furthermore, the complete set of rules will be applied on December 30, 2024.
Janet Ho, the head of policy for Chainalysis in Europe, alerted the crypto businesses and regulators to pull up their socks and be ready for the implementation of these new regulations as soon as possible. “There are the preparations you want to start now – maybe even yesterday,” said Ho.
Execution of Market in Crypto Assets
During a webinar referring to the timeline for MiCA’s implementation, Janet Ho argued that for a crypto entity to secure the license, it would take around four to five months from the competent local authority. Crypto companies wanting to operate in the European Union must apply for authorization in their chosen member country.
The authorities will promptly notify applicants of any missing information within a period of 25 working days. Additionally, applications will be informed within another 60 days whether their application has been accepted or rejected. When the laws come into effect, companies will line up, creating a waiting period of at least four to five months.
However, after going through these hardships, there will be some added benefits for the crypto companies. They can scale their business across E.U. using the license as a to operate in different member countries. The regulation facilitates this benefit even if the company is licensed in only one country.
In May 2023, the United States Securities and Exchange Commission’s Commissioner, Hester Pierce, said that the regulatory framework of the European Union could serve as a model for the U.S. Other jurisdictions are also examining its implications and aftereffects. Experts say that the regulations could also be mirrored in the future in other countries.
By leveraging the potential of the Crypto Assets Market and fulfilling its promises, obtaining a license within this industry has the potential to become a prestigious standard. Consequently, individuals holding such a license would gain the advantage of working across various jurisdictions as well.
However, experts say that the successful and seamless execution of the rulebook across the European Union could be a hindrance. BTC.x CEO Christian Anders argued that European regulators and governments would need intense lobbying efforts.
For the implementation of the regulatory framework to be successful, many E.U. members need to share the zeal for its execution. The regulations aim to bring much-needed clarity for the crypto sector in the region. However, getting all members to agree on the issue would be a challenge in itself..
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/15/for-mica-crypto-firms-need-to-be-proactive-chainalysis/