Written by: Aiying
Recently, Aiying has received a large number of customer inquiries regarding the European MiCA Act. With the introduction of the MiCA Act, governments and companies have taken measures to ensure compliance under the new regulations. This involves not only policy adjustments and legal interpretation, but also operational adjustments and system upgrades within the company. Related articles:
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Since the passage of the MiCA Act, EU member states have begun to formulate their own transition policies to ensure a smooth transition of the market. For example, Ireland has established a 12-month transition period, Germany has provided an 18-month transition period, and the Netherlands has accepted license applications in advance. Companies are also actively responding to this new regulation. For example, Binance and Coinbase are investing in new compliance technology systems, Kraken has implemented a comprehensive employee training program, Ripple is reassessing its risk management framework, and Circle is seeking professional legal consulting services. Through these efforts, companies can not only ensure compliance operations, but also remain competitive in the new regulatory environment. In order to help everyone better understand and respond to this new regulation, we have specially summarized some common questions and provided detailed answers.
1. Why is December 31, 2024 a critical date?
MiCA regulation will come into full force on December 30, 2024. This means that all CASPs operating in the EU must start complying with this new regulation.
2. What are the restrictions if there is no CASP license?
All crypto asset service providers (CASPs) wishing to operate within the EU must apply for or hold a regional CASP license by December 31, 2024. Companies that fail to obtain a license by this deadline will not be able to operate legally. This regulation is intended to ensure that all CASPs have the necessary compliance when the new MiCA (Crypto Asset Market Regulation) regulations come into effect.
3. What are the exemption policies for existing CASP holders?
Service providers that already hold a CASP license will have an 18-month transition period to apply for a MiCA license after the bill comes into effect on December 31, 2024.
4. Regional CASP license time-for-space transition plan
One of the biggest advantages of applying for a regional CASP license is that you can enjoy an 18-month transition period. This transition period allows companies to continue operating while having enough time to adjust their business models, update systems and train employees according to MiCA's requirements. It also ensures business continuity and avoids the risk of suspension of operations for companies that fail to obtain MiCA licenses in a timely manner. And it can make seamless connections and transitions after the law comes into effect.
5. Current transitional arrangements in European countries
According to the latest policy, the European Securities and Markets Authority (ESMA) urges member states and crypto asset service providers to take prompt action to ensure a smooth transition to the new EU legal framework. The following are the specific transition arrangements for some countries:
Ireland
Ireland has set a 12-month transition period for existing crypto-asset service providers. This means that these service providers can continue to operate until December 29, 2025. During this period, businesses will need to adjust their operations and compliance measures to meet the requirements of MiCA.
Germany
Germany has provided an 18-month transition period for existing CASP holders, allowing them to operate until June 2026. This arrangement provides companies with a longer period of time to adapt to the new regulatory requirements, ensuring a smooth transition and compliance.
Netherlands
The Netherlands will begin accepting license applications from crypto companies from April 22, 2024, with plans to formally implement it when MiCA comes into effect. This move allows crypto companies to apply for licenses in advance, ensuring a seamless transition when the new regulations come into effect.
France
Existing CASP holders in France are entitled to an 18-month transition period, which means these companies have enough time to adjust their operations to comply with MiCA’s requirements and ensure compliance in the new regulatory environment.
Lithuania
Lithuania’s transition period is set at 6 months, and all operators must be fully compliant with MiCA requirements by June 1, 2025. Despite the relatively short transition period, companies will need to quickly adjust their compliance measures to meet the requirements of the new regulation.
Latvia
Latvia has set an 18-month transition period and will accept license applications from January 1, 2025. Companies can adjust their operations to comply with MiCA requirements during this period while continuing to operate in the market.
Poland
Poland has also provided an 18-month transition period, allowing existing CASP holders to adjust their operations to comply with MiCA requirements between December 30, 2024 and June 2026. This provides companies with ample time to make the necessary adjustments and preparations.
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