EU to Fully Enforce MiCA From July 1, Bar Unlicensed Crypto Firms
Summary
- The EU will fully apply MiCA from July 1 and bar unlicensed crypto firms from operating.
- Existing CASPs must obtain a MiCA license or stop providing services to EU users.
- The industry is in a race to secure licenses, and Europe’s crypto market could reorganize around a small number of authorized firms after the rules take effect.
Forecast Trend Report by Period
The European Union’s Markets in Crypto-Assets regulation, or MiCA, will take full effect on July 1, tightening oversight of the region’s crypto industry. Attention is focused on whether firms that fail to secure licenses will have to suspend services.
Cointelegraph reported on June 1 that the EU will fully apply the MiCA framework from July 1 and prohibit unlicensed crypto businesses from operating.
Under the new regime, crypto-asset service providers, or CASPs, that had been operating under national regulatory systems must obtain a MiCA license or stop serving EU users.
Some firms whose license reviews have not been completed could temporarily suspend their EU operations, potentially affecting millions of users.
France’s Autorité des Marchés Financiers said 19 crypto-asset service providers have received MiCA approval so far. About 25 license applications remain under review.
Ahead of the rollout, exchanges, custody firms and stablecoin issuers have been racing to secure licenses. The market could reorganize around a small number of authorized firms after the rules take effect.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
