As a seasoned crypto investor with roots deeply entrenched in the ever-evolving digital asset landscape, I find myself both intrigued and cautiously optimistic about the EU’s transition from national laws to the MiCA regulations. Having weathered numerous market cycles and regulatory changes, I can attest that adaptability is the key to survival.
By December 30, the European Union will shift from individual laws governing crypto asset service providers (CASPs) to a unified set of regulations called MiCA (Markets in Crypto-Assets). The Cyprus Securities and Exchange Commission (CySEC) is serving as an example of this transition by halting new applications for CASPs and alerting market participants about the impending changes.
Planning for a smooth transition
Starting October 17, CySEC will no longer accept CASP applications based on Cypriot national laws. Any CASPs that manage to register under these laws by the deadline of December 30 can continue operating within this jurisdiction until July 1, 2026. However, if they receive or are denied authorization under MiCA Article 63 before then, their operational timeline may change.
Under the MiCA regulations, CASPs will need to comply with both the Regulatory Technical Standards and Implementing Technical Standards that have yet to be officially published by the European Commission. However, CySEC recommends that interested parties familiarize themselves with the Draft Technical Standards released by the European Securities and Markets Authority (ESMA) in the interim.
Starting on October 30th, the CySEC (Cyprus Securities and Exchange Commission) will no longer accept notifications from European Economic Area entities about their plans to offer services in Cyprus. However, any entity that files a notification before then will be permitted to operate under the same terms as local entities until July 1, 2026.
A far-reaching transition
Entities based in Cyprus can presently provide cryptocurrency asset services across the EU under any of the three applicable national laws. However, it’s important to note that these entities should also familiarize themselves with the guidelines set by the European Securities and Markets Authority (ESMA), as they prepare for the transition to the Markets in Crypto Assets (MiCA) regulation.
Other regulators have raised concerns already.
According to the Dutch Financial Markets Authority, they were examining suspected market manipulation activities prior to the shift to MiCA, which was announced in September. Such deceitful practices are expected to become more evident under the new, transparent regulations. Additionally, these practices will be explicitly forbidden under the revised rules as well.
As a researcher, I’ve been following the recent developments in the financial sector, particularly the MiCA regulations. In light of these advancements, I find myself advocating for certain modifications in line with ESMA’s suggestions. Specifically, I believe that Crypto Asset Service Providers (CASPs) should be subjected to a comprehensive cybersecurity audit and a rigorous background check. This is to ensure the security and stability of our financial infrastructure as we move forward. The MiCA regulation, which was passed by the European Parliament in April 2023, has already come into effect for stablecoins on June 30. This regulatory framework is crucial in shaping the future of digital assets within our continent.
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2024-10-17 22:19