The Wild West for cryptoassets is coming to an end

Cryptoassets are no longer foreign to traditional investors. On December 30, the MiCA Regulation (an acronym for markets in crypto-assets) comes into effect, opening the door to a much broader market under a regulation that establishes guarantees for consumers and a series of requirements for operators. Those wishing to operate will need to have a license or registration with the National Securities Market Commission (CNMV), which has strengthened its authorization and supervision teams. Entities interested in marketing them could apply since September, and it is known that CaixaBank, BBVA, and Banco Santander have been preparing their respective offers.

Although critical voices believe that this regulation goes against the alternative, decentralized, and deregulated essence of investments in the world, entities that promote, market, and advise on these investments will need to be authorized. However, those that were already operating will have a transition period. “It creates a safe environment for the cryptoasset market. Both financial operators and investors can count on protection and guarantees similar to those of the traditional market,” explains Enrique Nieto, partner at Uría Menéndez, who emphasizes that despite these measures, there is no zero risk in investments. In fact, the European Securities and Markets Authority (ESMA) has recently issued a communication warning of this.

Still, banks have it easier. “They have a more favorable treatment since they do not need an explicit MiCa license and can operate with their own banking license. Investment service companies or electronic money institutions will be able to provide cryptoasset services by notifying the competent authority in advance,” clarifies Alfonso López-Ibor, partner at López-Ibor DPM. The European regulation not only affects banking but also service providers, including exchanges or trading platforms.