EU Crypto Law MiCA Implementation Deadline Approaches Amidst Unprepared Nations
Markets in Crypto Assets (MiCA), the significant cryptocurrency regulatory framework in the European Union, is nearing its implementation deadline by year-end. With three weeks remaining before December, a quarter of the 27 EU member nations remain unprepared to implement the rules.
To implement MiCA, national legislation must align with the EU’s regulatory framework. The Electronic Money Association reports that countries including Italy, Belgium, Poland, Luxembourg, Portugal, and Romania have not made the necessary legislative changes.
Crypto industry trade associations express concerns over the lack of readiness and criticize EU authorities such as the European Securities and Markets Authority (ESMA) and the European Commission for emphasizing the year-end deadline despite compliance gaps among member states.
Robert Kopitsch, co-founder of Blockchain for Europe, stated that “the implementation of MiCA into national law is not going the way it should.” The MiCA rules will be implemented in two phases. The first phase began in June, requiring stablecoin operators to secure proper authorization to operate within EU member states. The December deadline targets crypto asset service providers (CASPs), including wallet providers, exchanges, and custodians. To apply for a MiCA license, crypto firms must register and establish a presence in at least one EU member state, enabling them to operate across the trading bloc.
Industry Groups Share Concerns about MiCA Implementation Deadline
Trade associations from the crypto industry have raised alarms about the limited timeframe national regulators have had to prepare for MiCA. They noted that the brief period between the October finalization of regulatory standards and the December deadline has left regulators struggling to manage the administrative workload. A joint letter sent to ESMA highlights:
“Under such time pressure it will be very difficult for the responsible NCA to manage the CASP application properly which is crucial for launching effective supervision based upon a well-established regulatory relationship.”
The trade groups proposed a six-month “no-action” period to delay enforcement, allowing crypto firms yet to receive authorization to continue operations without penalties. However, ESMA denied this request but is expected to discuss the MiCA deadline during a meeting on December 11.
Martin Kopitsch from Blockchain for Europe warned that the absence of regulatory relief could lead to crypto firms relocating outside Europe. He stated:
“If you don’t have a license by a certain date you need to basically stop your services in Europe. Imagine what that means. Very bad for business and users will be upset. And it doesn’t make the EU look good.”
According to the Electronic Money Association (EMA), even Germany, recognized for its advanced crypto asset regulations, faces difficulties aligning with MiCA. Germany’s current crypto regulations necessitate new legislation to comply with MiCA requirements, a process that requires time.