EU Prepares to Enforce MiCA Crypto Law with National Nuances
The European Union’s landmark crypto regulation, the Markets in Crypto Assets (MiCA), is set to take effect this year, requiring national regulators to license and supervise service providers. Each of the 27 member states must transpose the EU regulation into local law, designate their National Competent Authorities (NCAs), and prepare for the authorization of crypto firms. While countries like Germany and France already have stringent internal crypto regulations and may experience a smoother transition, others may face significant challenges in adapting to the new framework.
MiCA’s specialized rules for stablecoin issuers will come into effect in a few months, with broader licensing requirements for all crypto firms starting in December. National authorities have the flexibility to implement certain technical standards, such as supervision fee structures and grandfathering periods. This means that crypto businesses must stay informed about the nuances in each jurisdiction to ensure compliance and smooth operations across the EU.
Regulators in various countries are at different stages of preparation. Some have finalized or nearly finalized their local legislation, while others are still in the drafting phase. For instance, France has designated its financial and banking regulators to oversee MiCA, while Croatia plans a similar setup. Countries with fewer financial regulators, like Slovakia and Hungary, will rely solely on their central banks for supervision. The transitional periods allowed under MiCA also vary, with some nations opting for the full 18 months and others considering shorter periods.
As the EU moves towards enforcing MiCA, national regulators are gearing up for an increased workload. Many are hiring new personnel and setting up dedicated teams to handle the new requirements. The European Securities and Markets Authority (ESMA) is working on regulatory technical standards and guidance, with an initial deadline for public comments set for June. Policymakers are also considering future revisions to MiCA, potentially expanding its scope and tightening certain rules.
