Chainalysis’s Europe policy chief said during a webinar that companies need to start preparing for EU cryptocurrency regulations (MiCA), even though they won’t come into force until the end of next year.
Cryptocurrency Asset Markets (MiCA) published in the Official Journal of the European Union last week, creating new obligations for cryptocurrency providers and issuers stablecoins serving customers in the region.
Although regulation It will become law on June 29 this yearThe first rules will not go into effect until June 2024.
However, Janet Ho, Head of European Policy at Chainalysis, warned companies and regulators not to get complacent and start preparing for MiCA as soon as possible.
“These are the preparations you need to start now, maybe even yesterday,” he said.
Citing the timelines set in MiCA, Hu said that in an “ideal scenario,” it could take between four and five months for applicants to obtain a MiCA license from the local competent authority.
Those who wish to operate a cryptocurrency-related business in the European Union will need to apply for permission in the member country of their choice. The text of the landmark regulation specifies that authorities have 25 working days to notify an applicant if any document is missing, and another 60 working days to approve or deny their application.
“If you want to continue your business, you have to consider those four or five months, if not longer,” Hu said.
He said companies should not see compliance with the regulation as just a burden. There will also be benefits to obtaining permission.
“Once you get a license, you can also expand the business within the EU,” Hu said. MiCA will allow companies to transfer their practices to other EU countries without the need for further authorization, once they have obtained a license in a member country.
He added that there could be benefits “outside of Europe” if MiCA is seen as the gold standard for cryptocurrency regulation.
“If you have a MiCA license, you’re in compliance, and you’re being verified,” he said. “There are no uniform rules anywhere else in the world.”
Some even hope that the standards set by MiCA will become popular in other countries. EU lawmakers urged their counterparts around the world to draw inspiration from the package when creating their own cryptocurrency rules.
Last month, US Securities and Exchange Commissioner Hester Peiris said that regulatory efforts in the European Union and the United Kingdom could serve as a “blueprint” for the United States.
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