The Markets in Crypto Assets (MiCA) regulation is set to come into effect at the end of December 2024, yet nearly a quarter of EU member states, including Belgium, Italy, Poland, Portugal, Luxembourg, and Romania, have yet to align their local laws with MiCA. Trade associations representing the crypto sector warn that the European Commission and ESMA are downplaying the difficulties posed by this deadline. The implementation process is divided into two stages, with the second phase focusing on crypto asset service providers (CASPs) requiring registration and authorization to operate in the EU. Due to a short timeframe between the finalization of regulatory standards in October and the December deadline, authorities have expressed concerns over managing CASP applications properly. A coalition of trade groups has requested a six-month enforcement hold for non-compliant firms, though ESMA has so far denied this request. Notably, challenges are also being faced by several countries, including Germany, in adapting their existing crypto frameworks to comply with MiCA.

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