Some EU Countries May Miss MiCA Deadline

Several European Union countries are not fully prepared to implement the MiCA regulation by the December 2024 deadline. Among them are Belgium, Italy, Poland, Portugal, Luxembourg, and Romania, according to data from the Electronic Money Association (EMA).

Crypto companies have expressed concern that EU regulators have underestimated the challenges of implementing the framework across member states. Several organizations have already requested the European Securities and Markets Authority (ESMA) to delay MiCA enforcement by six months.

MiCA is being rolled out in two phases. The first phase, focused on licensing stablecoin issuers, was completed in June 2024. The second phase, requiring exchanges, wallet providers, and custodians to register, is set for December 2024. However, industry players argue that the two-month window for preparing regulatory standards and processing applications is far too short.

While ESMA has declined the request for an extension, it plans to review the matter during its December 11, 2024, meeting. Companies operating without a license risk being forced to halt their activities within the EU.

Robert Kopitsch, co-founder of Blockchain for Europe, warned that some companies may have to shut down operations due to their inability to comply with MiCA requirements. He pointed out that Ireland, Poland, Spain, and Italy are among the nations at risk of missing the deadline. Anonymous sources also named Belgium, Cyprus, Lithuania, and Malta as potentially lagging behind.

Despite the challenges, some countries are making progress. Poland’s new crypto market legislation has received positive feedback from regulators, while the Czech Republic has approved financial reforms in line with MiCA. Meanwhile, Spain aims to fully implement the framework by 2025.

MiCA, adopted by the European Council in June 2023, marks one of the EU’s first comprehensive regulatory frameworks for the cryptocurrency industry.