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- 1 MiCA’s successful execution across European nations would be an issue, says BTC.x CEO.
- 2 The regulatory framework is officially published in OJEU and will be effective in 2024.
E.U.’s MiCA is published in Official Journal, and effective from December 30, 2024, seamless implementation would be problematic. First introduced in September 2020 and signed into law on May 31, 2023, the Market in Crypto Assets is a comprehensive regulatory framework for the countries of the European Union. However, BTC.x CEO Christian Anders feels that extra efforts would be required for implementation.
MiCA Could Face Hurdles in its Implementation
Anders praised the clarity the regulations would provide but argued that its implementation would require lobbying efforts in different European governments and regulators. For instance, countries like Sweden would require a push.
He mentioned that the crypto exchanges are eagerly awaiting the complete implementation of the regulatory framework in the E.U. He also argued that countries like Sweden are a bit reluctant to issue new licenses to crypto companies. Even though the governments cannot halt the process, it could indeed delay the progress.
BTC.x CEO said that the intra-continental acceptance of the regulations would be like a marathon rather than a sprint. Some governments do not share the enthusiasm and frenzy surrounding MiCA. Slowing the framework train could end up being a double-edged sword, a hostile scenario for the industry.
Moreover, the CEO highlighted the recent rise of the Bitcoin mining industry across Europe and their deviation towards renewable energy. Referring to the increasing involvement of the younger population in technology, he said that the scenario would be helpful for the industry in the long run.
Even though MiCA or Market in Crypto Assets provides clarity and is believed to be a comprehensive regulatory framework for the crypto industry, getting all the member nations to consent would be a mammoth task. Even after being in a union, they have a say in certain areas, which might delay the implementation process.
The regulations were officially published in the Official Journal of the European Union (OJEU) on June 9, 2023. The rules shall take effect after 20 days of publication but shall be implemented from December 30, 2024. Also, special rules would take effect six months before final implementation.
The critical components of the regulations include the authorization and registration requirements for Crypto Assets Service Providers (CASPs) in the bloc, with added emphasis on customer protection. A significant part revolves around stablecoins as well.
The CEO also expressed his thoughts on the recent regulatory crackdown in the United States carried on by the Securities and Exchange Commission (SEC). The SEC recently filed a lawsuit against the world’s biggest crypto exchange and Coinbase, regarding unregistered operations among other federal offenses.
He thinks that Crypto.com could be the next victim of the financial watchdog. Also, he believes that the recent regulatory actions are driving the crypto industry away from the United States.
The recent crackdown on the crypto industry has created a hostile environment in the U.S., forcing them to move offshore. The agency is trying to bring almost every token under its jurisdiction by rebranding it as securities. This step might be beneficial in the short term, but the U.S. could lose its financial superpower stature in the long run.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
