The European regulation comes into effect on December 30 with requirements for operators and guarantees for investors
Crypto-assets are no longer foreign to traditional investors. On December 30, the MiCA Regulation (acronym for markets in crypto-assets) comes into effect and opens 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 have 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 it 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 crypto world, it is a pioneering norm thanks to which entities that advertise, market, and advise on these investments will have to be authorized. However, those that already operated will have an adaptation period. “It creates a safe environment for the crypto-assets 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 about it.
competent,” 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 and custodians of electronic wallets and buying/selling or trading services. Additionally, it affects issuers, including those issuing tokens (units of value) referenced to other assets and electronic money tokens; as well as token financing platforms and advisors. Specialists highlight the impact on improving trust in stablecoins — tokens whose value is referenced to a real asset — by imposing reserve and capital requirements on their issuers.
Another advantage is that they streamline some processes in other countries. Fernando Gutiérrez, partner at Bird & Bird, reiterates that “entities that are already supervised will have a lighter procedure, they will not start from scratch, because they are already subject to supervision.” He also highlights that MiCa, like other European regulations, provides for the creation of a sort of passport, so that when authorized in a member state of the European Union, there is considerable progress made to enter other European markets. “Spanish entities request it through the Spanish supervisor, who manages it with their counterpart in the country where they want to operate,” he explains.
The entry into force of this regulation is a first step, and everyone agrees that the norm will need to be updated and improved over time. “There will likely be a review or a MiCa 2, as assets like NFTs (non-fungible tokens, which represent something unique) or decentralized finance are excluded. But it is better to have a regulation, even if it is imperfect,” says Xavier Foz. Given that it is based on a technology that evolves so rapidly, it is almost certain that in a few years there will be assets that fall outside its radar. Europe will have to keep pace with a regulation adjusted to what the future dictates.
Adaptation of operators
When the MiCa regulation comes into effect, entities operating without authorization will have to adapt, and only some will be able to apply for the transitional regime, the duration of which the Government has reduced from 18 to 12 months, concluding on December 31, 2025. The CNMV has confirmed that this decision has already been communicated to the European Securities and Markets Authority (ESMA). Providers offering services in Spain without being able to benefit from the transitional period may be sanctioned and included in the list of unauthorized entities or “financial chiringuitos.”