Europe Mobilizes for the Entry into Force of MiCA
In June, the specialized rules of the Markets in Crypto-Assets regulation (MiCA) for stablecoin issuers will come into force. They will be followed by licenses and other requirements for crypto companies in December. MiCA was voted in 2023 after three years of development. However, its implementation presents challenges for each Member State.
MiCA normally grants an 18-month transition period. However, in some countries, this grace period is expected to last only 12 months.
National Adaptation of National Regulations to MiCA
European countries are at different stages of transposing MiCA into local law. This involves choosing the competent national authorities (CNAs) to oversee crypto. Some countries, like France and Croatia, have already designated their regulators, while others, like Slovakia and Hungary, have entrusted this responsibility to their central banks.
National regulators will also need to manage grandfathering periods and adapt to licensing requirements imposed by MiCA. While some countries are actively preparing by mobilizing additional resources, others might face difficulties due to the fragmentation and differences between European crypto markets. Nevertheless, experts believe there is still time to finalize everything.
For some specialists, like Sophie Lessar, a lawyer at DLA Piper, MiCA will take effect on the agreed date. For her, it is an EU crypto regulation and no national regulator can delay its entry into force. She adds that close cooperation between the various EU Member States will be required for its successful implementation.
The implementation of MiCA marks an important step in the regulation of Crypto in Europe, but it will require close cooperation between the Member States and continuous adaptation to the emerging challenges of the industry.
