Source: Cointelegraph
Original: “The MiCA Regulation in Europe Has Been Launched, But Can the Crypto Industry Keep Up?”
The European Union's regulation on the crypto asset market—commonly known as MiCA—is currently in a critical implementation phase. The legislation aims to unify cryptocurrency regulation across the 27 EU member states, promising a clear regulatory framework, consumer protection, and long-term market stability. However, as the implementation process begins, issues have started to emerge.
In this week's "Byte-Sized Insight" feature, we delve into the key provisions of MiCA that are already in effect, particularly the regulations concerning stablecoins, and why some major players in the market are refusing to comply with these regulations.
Starting from January 2025, crypto asset service providers (CASPs) will begin applying for licenses to operate legally within the EU. Depending on the regulations of different member states, existing institutions may receive a transition or "grandfathering" period of up to 18 months to achieve compliance. Nevertheless, as the deadline approaches, companies are being forced to act quickly.
One of the earliest and most controversial provisions of MiCA involves the regulation of stablecoins. According to the law, no stablecoin may be offered to EU users unless its issuer is authorized in the EU and has published a white paper approved by regulatory authorities.
The legislation also includes strict asset reserve requirements, governance standards, conflict of interest prevention, and marketing restrictions. Issuers are even prohibited from offering interest on tokens, removing a common incentive for user adoption.
The most widely used stablecoin globally—Tether's USDT—has already announced that it will not seek compliance with MiCA regulations, meaning exchanges may soon be forced to delist the token across the EU. This will have significant implications for liquidity, retail access, and DeFi activities in the region.
Tether CEO Paolo Ardoino told Cointelegraph reporter Gareth Jenkinson at the Token 2049 conference:
"The reason is not fear of regulation or compliance requirements… My concern with MiCA is that this licensing is very dangerous when it comes to stablecoins, and I believe it poses a greater risk to the European small and medium-sized banking system."
On the other hand, other companies are actively adapting to the new regulations. Crypto custody firm BitGo recently successfully obtained a MiCA-compliant license in Germany, enabling it to serve institutional clients across Europe.
Brett Reeves, BitGo's Go Network and European Sales Director, revealed to Cointelegraph that obtaining the license is not just about compliance, but also a strategic move to align with Europe's evolving regulatory environment.
"We find that both the Federal Financial Supervisory Authority (BaFin) in Germany and European regulators are relatively easy to communicate and collaborate with. Although they sometimes pose tricky questions, their goal is to ensure our processes are sound and meet standards."
We also interviewed Erwin Voloder, Policy Director of the European Blockchain Association, who emphasized the need for consistent interpretation at the national level and clearer guidance from regulators to prevent market fragmentation.
Please listen to the full interview of Byte-Sized Insight on Cointelegraph's podcast page, Apple Podcasts, or Spotify. Also, feel free to follow all the exciting programs offered on the Cointelegraph platform.
Related: Stablecoin legislation passed in the Northern Mariana Islands, House overturns previous veto.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
