_when will mica regulation be implemented?
The European Union’s crypto legislation, known as the regulation on Markets in Crypto Assets (from now on MiCA), has been delayed until April due to the issues in translating the rules into the 24 official languages of the EU. MiCA was supposed to be implemented at the start of 2022. Still, it has been delayed due to the massive undertaking of translating the legislation into all the different languages of the EU, as the bill must be the same in all the countries in the EU, and any discrepancies could lead to legal disputes down the line.
The European Parliament is expected to vote for the legislation in April 2023. Currently, there is no expectation that the legislation will be resisted. After 20 days from the date of voting, MiCA should enter into force and generally start applying after a transitional period of 18 months. It is worth to be noted that the rules for stablecoins only require a 12-month transitional period. Therefore, MiCA will likely start taking effect in the spring of 2024.
What to expect from Mica
MiCA is a set of legal provisions, regulating digital assets, including cryptocurrencies. It will cover areas such as licensing, capital requirements, and oversight. This is essential for the EU to ensure that digital assets are appropriately regulated, protecting investors from potential fraud and scams.
Legal Entities and persons looking to enter the Crypto Asset Service Provider (CASP) market should commence working on their structures. Ideally, they would be set up in accordance with the requirements of MiCA early to avoid any changes later on. CASP must ensure compliance early before the MiCA regulation even comes into force.
If you require any additional information regarding MiCA requirements, please do not hesitate to contact us:
Theo Antoniou