Crypto regulation Mica before implementation-where are Europe going?
The Crypto Ordinance of the European Union (EU) called Markets in Crypto-Assets-better known as Mica-is now in the crucial implementation phase. Mica is intended to standardize crypto regulation in all 27 EU member states and promises clarity, consumer protection and long-term market stability. But while the implementation begins, the first cracks are already evident.
In this episode of Byte-Sized Insight, we deal with the most important provisions of the Mica, which are now in force, especially with regard to stable coins, and with the question of why some of the largest market participants refuse to adhere to them.
Since January 2025, providers of crypto-asset services (CASPS) have had to acquire licenses in order to be legally active in the EU. A transition or “Grandfathering” period allows existing companies, depending on the Member State, to have up to 18 months to meet the requirements. However, since the implementation periods are getting closer, companies are forced to act quickly.
Stable coins on the advance
One of the earliest and most controversial provisions of Mica concerns stable coins. According to the law, no stablecoin may be offered by EU users if the issuer is not approved in the EU and published a white paper approved by the supervisory authority.
Strict rules for asset reserves, governance, conflicts of interest and marketing are also part of the package. The issuers are even prohibited from offering interest rates for tokens, which gives rise to a common incentive for their introduction.
The most used stable coin-the USDT (USDT) from Tether-has already announced that he will not strive for a mica conformity, which means that crypta organisms could soon be forced to take it out of the trade in the entire EU. This has a significant impact on liquidity, access for private customers and the defi activities in the region.
The CEO of Tether, Paolo Ardoino, told Gareth Jenkinson von Cointelegraph at the crypto conference token 2049:
“The reason is not the fear of regulations, the fear of compliance with regulations … The problem I had with the Mica is that (the) license is very dangerous when it comes to stable coins, and I believe that it is even more dangerous for the small, medium -sized banking system in Europe.”
Compliance is the key
On the other hand, there are companies that fully focus on the new regulation. Bitgo, a crypto attitude company, recently secured a mica-compliant license in Germany and thus position itself for institutional actors across Europe.
Brett Reeves, the head of the Go Network and the European Sales at Bitgo, emphasized to CoinTelegraph that the license is not only concerned with compliance with regulations, but a long -term strategic focus on the developing regulatory landscape in Europe.
“We have found that both Bafin and the European supervisory authorities are relatively uncomplicated to deal with us. Sometimes they have difficult questions, but they are there to ensure that our processes are available and up to date.
Cointelegraph also spoke to Erwin Voloder, the Head of Lobby at the European Blockchain Association, who emphasized the need for a uniform interpretation at the national level and better instructions by the regulatory authorities to prevent fragmentation.
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