The MiCA regulation officially took effect on December 30, marking a significant milestone in the development of the cryptocurrency industry in Europe, although concerns about tightening regulations still remain.
On December 30, the European Union's Markets in Crypto-Assets (MiCA) regulation – the world's first comprehensive legal framework specifically for the cryptocurrency industry – was officially applied to crypto asset service providers. According to experts, although some voices express concerns about the potential for excessive regulation in the early stages of implementation, MiCA is still seen as a positive driver for the long-term growth of the market.
Mr. Dmitrij Radin, founder of Zekret and Chief Technology Officer of Fideum, stated that this regulation will help the market mature, thereby attracting more investment capital and expanding the user base.
Alongside the prospects, MiCA also brings stricter regulatory requirements, especially for retail investors. Users will have to provide more personal and financial information to meet legal compliance requirements, while also facing the risk of taxes related to crypto assets.
Furthermore, this regulation allows European governments to sue violating platforms. Mr. Radin believes that one of MiCA's key objectives is to identify and address weaknesses in the oversight of the cryptocurrency market, which means tighter scrutiny on retail investors.
Despite initial challenges, major financial institutions are quickly adjusting to comply with MiCA. Société Générale, one of the largest banking groups in the world, has partnered with Bitpanda to issue the stablecoin EUR CoinVertible (EURCV), which is pegged to the euro and complies with MiCA standards.
At the same time, the cryptocurrency payment company MoonPay received MiCA approval in the Netherlands right on December 30, demonstrating the proactive preparation of businesses to adapt to the new legal environment.