{"id":18053,"date":"2024-02-05T11:38:38","date_gmt":"2024-02-05T10:38:38","guid":{"rendered":"https:\/\/affidaty.io\/blog\/?p=18053"},"modified":"2024-03-26T15:44:15","modified_gmt":"2024-03-26T14:44:15","slug":"crypto-assets-mica-regulation","status":"publish","type":"post","link":"https:\/\/affidaty.io\/blog\/en\/2024\/02\/crypto-assets-mica-regulation\/","title":{"rendered":"MiCA Regulation: transition period, between risks and opportunities"},"content":{"rendered":"\n
<\/div>\n\n\n\n

MiCA Regulation<\/strong> 1114\/2023, which governs the market of crypto-assets<\/strong>, establishes the effectiveness date of its provisions as June 30, 2024 for issuers of asset-referenced tokens and e-money tokens, and December 30, 2024 for the authorization regime of crypto-asset<\/strong> service providers. <\/p>\n\n\n\n

Only for service providers, the MiCA Regulation<\/strong> grants individual Member States the option to allow a “transitional period<\/mark>” (so-called grandfathering period) of up to 18 months for the entry into force of new authorization measures. It’s important to note that these measures will require crypto asset service providers (CASP) to adopt a series of organizational, capital, and procedural safeguards to obtain a license to operate within the territory of the European Union. Member States must communicate their decision by June 30, 2024, although ESMA recently urged states to make their choice as early as possible.<\/p>\n\n\n\n

The phase we are going through is crucial to understand which states will avail themselves of the transitional period and which, instead, will require all service providers to be duly authorized by December 30, 2024. It’s worth noting that service providers establishing themselves in a Member State using the transitional period will not be able to benefit from “passporting<\/mark>” their services, meaning they cannot freely provide services without the need for a stable establishment in other states that have not granted such a grace period.<\/p>\n\n\n\n

This potential inconsistency among the choices of various states had rightly fueled operators’ hope for a tacit agreement among countries to adopt a common line. However, this hope was dashed based on the first formally communicated choices or rumors from authorities. As of now, Lithuania has communicated its refusal to grant the transitional period, while Ireland seems to opt for 12 months and Spain for only 6 months.<\/p>\n\n\n\n

Choosing not to use the transitional period, or opting for a particularly short one, can represent both a risk and an opportunity.<\/p>\n\n\n\n

It’s a risk for supervisory authorities because managing tens, if not hundreds (for example, Lithuania currently has over 500 registered operators), of authorization procedures within a few months would require allocating considerable resources in a short time and speeding up internal processes to meet all authorization requests and legitimate market pressures. But it’s also a risk for the market of the Member State, which could see providers fleeing to establish themselves in other states where they can enjoy more lenient timelines for submitting authorization requests, although it will still be a complex and articulated process.<\/p>\n\n\n\n

At the same time, for those states that can organize and handle the various requests promptly (but also carefully, to avoid the risk of “easy” license grants), not granting the transitional period could be an opportunity to become, ahead of other countries, a European hub<\/em><\/mark> <\/strong>for the crypto-assets<\/strong> market. This is provided that CASPs, especially those with smaller sizes and economic resources, manage to meet all the requirements to obtain the license in such a short time.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Thus, it’s a phase as fascinating as it is delicate, which will shape the geopolitical map of crypto-assets<\/strong> in the coming months.<\/p>\n\n\n\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

MiCA Regulation: a fascinating as well as delicate phase that will outline the geo-political map of crypto-assets in the coming months.<\/p>\n","protected":false},"author":252,"featured_media":18100,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"","parallax":"1","fullscreen":"0","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"float","share_float_style":"share-normal","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"0","show_popup_post":"1","number_popup_post":"1","show_author_box":"1","show_post_related":"1","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"no-crop","single_post_gallery_size":"crop-715"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_social_meta":{"fb_title":"","fb_description":"","fb_image":"","twitter_title":"","twitter_description":"","twitter_image":""},"footnotes":""},"categories":[1084],"tags":[794,804,183,844],"coauthors":[1130],"class_list":["post-18053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-crypto-news-en","tag-ai-eng","tag-crypto-en","tag-pos-en","tag-speed"],"_links":{"self":[{"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/posts\/18053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/users\/252"}],"replies":[{"embeddable":true,"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/comments?post=18053"}],"version-history":[{"count":0,"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/posts\/18053\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/media\/18100"}],"wp:attachment":[{"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/media?parent=18053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/categories?post=18053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/tags?post=18053"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/affidaty.io\/blog\/wp-json\/wp\/v2\/coauthors?post=18053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}