According to DLNews, if the compliance time is not extended, crypto companies may be forced to suspend services in the nearly $1 trillion European market. The EU's new Crypto Asset Market Regulation (MiCA) will take effect on December 30.
The European Crypto Initiative, the European Blockchain and Electronic Money Association and the International Association of Trusted Blockchain Applications wrote to the European Securities and Markets Authority, warning that if the compliance time is not extended, users' ability to trade will be impaired, resulting in serious customer losses and negative financial consequences.
MiCA sets new rules for crypto asset service providers (CASPs), requiring national regulators to authorize CASPs. Although MiCA provides a transition period of up to 18 months, different countries choose different deadlines, which may lead to cross-border service disruptions.
Industry associations have called for an extension of the transition period for MiCA authorisations until the end of June to ease regulatory uncertainty.