- MiCA might have the potential to show the regulatory path to the whole crypto space
- The head of policy explains how businesses adapt it and how it will benefit them.
Along with the rest of the world, Europe has been trying to do its part in crypto regulation. The most recent one is the Markets in Crypto Assets (MiCA) published in the EU’s official journey. According to many, it is a milestone moment in the crypto sphere.
Analyzing the pros & cons
Chainalysis, an analyst agency, has advised cryptocurrency companies to prepare for MiCA immediately. Janet Ho, the head of policy, has suggested the firms and regulatory bodies of the continent “also” gear up. She said the policy framework is all set to be implemented, and businesses must be ready for it.
However, she said no one needs to panic since they have much time to prepare. The new regulation is scheduled to be implemented by the end of 2024. But it may take some time to align the business operations as per the new framework.
Giving more details about the date, she said that the regulation is slated to turn into law on June 29th. Their implementation will happen on the same date next year. Still, it would take some time for the full-fledged execution, and supposedly, it’ll happen by the end of the year.
Estimating the time more precisely, Ho said that the full-scale implementation could take between four to five months. During this period, the businesses must also procure a license from the relevant authorities.
The procedure and advantages
He said engaging without a license would be impossible. Every would-be-impossible country will have to apply for approval in its member country.
After the application is submitted, the authorities will respond to it in 25 working days. They will inform the applicants if something is missing or if more details are required.
But, it is not just as it looks; the companies that applied for licenses won’t be able to operate for this duration. So they need to do this procedure before kickstarting the business.
She emphasized that the firms should apply for the license immediately. That’s because the preparations and molding of day-to-day activities per the new regulation will take some time.
They will get very little time to finish the licensing procedure and preparations. They should start immediately if they don’t want to halt their ops.
Discussing the flipside of the regulation, Ho said that it’s not just the hassles that firms will go through; they’ll also get some benefits. MiCA would enable businesses to extend their wings into other EU nations without seeking permission from the local authorities.
If the central authority approves their business, they won’t require approval from any other administration.
MiCA would allow enterprises to scale up their operations. It would eliminate the limitations that businesses faced earlier. He also hopes that MiCA will go beyond Europe and adapt globally. She said that right now, there isn’t a particular standard for the crypto domain, and MiCA could fill the void.