The deadline for the entry into force of the Regulation for the Cryptoasset Market (MiCA) of the European Union (EU) is scheduled for December 30. And with just three weeks left until the deadline, most countries in the region are not prepared for the legislation.
This is according to a group of cryptocurrency and blockchain trade associations who warn that unless they get more time to comply, market reputation and customers will suffer.
Consequently, they ask the European Securities and Markets Authority (ESMA) for a six-month “no action” period for the application of the law. With it its entry into force would be delayed in order to allow countries to move forward with their regulations.
So far, it is known that ESMA has not been willing to give an extension, although it is expected that This December 11, “guidelines” will be published about the schedule after a meeting that the organization will hold.
“Failure to do so will jeopardize the ability of users to trade and will cause serious harm to customers and negative financial consequences in all EU Member States,” a letter states. shared with the media communication by the European Crypto Initiative, Blockchain for Europe, the Electronic Money Association and the International Association for Trusted Blockchain Applications.
They explain, in this sense, that with the entry into force of MiCA on December 30, cryptocurrency companies will be forced to suspend their services in the European market – valued at almost a trillion dollars – unless they get more time to comply with the new regulation.
The problem with the current schedule is that, starting in January, cryptocurrency exchanges (crypto asset service providers, or CASPs), must be registered and based in at least one EU country to apply for a license. .
Most countries have not adapted their laws
However, this registration process in many countries has not been completed due, among other things, to a series of delays in ESMA’s schedule. This is because to implement the MiCA rules each of the 27 members of the bloc must adapt their national legislation to align with the regulatory framework, but the Most countries have not been able to comply with this process.
The Electronic Money Association report shows that countries such as Italy, Belgium, Poland, Luxembourg, Portugal and Romania have not yet made the necessary legislative adjustments. Something similar happens with Ireland, Portugal, Poland and even Spain who have difficulty meeting the deadline.
The problems also affect Malta, Cyprus, Lithuania and Belgium, said Robert Kopitsch, co-founder of Blockchain for Europe, an organization based in Brussels. “The implementation of MiCA in national legislation is not going as it should,” Kopitsch stated.
“Even Germany, known for its advanced cryptoasset regulations, faces challenges aligning with MiCA.” Germany’s current cryptocurrency regulations require new legislation to comply with MiCA specifications, a process that takes time.
In fact, Kopitsch fears that the lack of regulatory relief could force cryptocurrency companies to move out of Europe:
If you don’t have a license by a certain date, you basically have to stop providing services in Europe. Imagine what that means. It’s very bad for businesses and users will be angry. And it doesn’t make the EU look good.
The groups remind that MiCA offers a grace period of up to 18 months for companies to transition from outgoing local regulations to those of MiCA. However, they warn that this grace period is not very helpful and that cryptocurrency companies could still having to close its cross-border services.
As CriptoNoticias has reported, the entry into force of MiCA this December 30 represents a second stage in the implementation of the new Regulation. This, after a first phase that began six months ago, where a series of rules for stablecoins came into force that practically left USDT outside European territory.