The European Union is preparing for a shift in crypto regulations by December, with the implementation of the Markets in Crypto-Assets (MiCA) regulations. This new framework will replace national laws governing crypto-asset service providers (CASPs) across the bloc.
In a recent move, the Cyprus Securities and Exchange Commission (CySEC) has ceased to admit applications for the CASP through national provisions, marking this crossing. The regulator calls for market participants to begin preparing for the requisite changes.
As of June 30, 2024, MiCA has become applicable to ART and EMT issuers. CASPs will be under the MiCA regime on Dec. 30, 2024. The implication is that CASPs already existing will have a window to sustain operations up to July 1, 2026, unless they are sooner authorized or their application gets refused.
CySEC awaits finalization of regulatory technical standards
CySEC has announced it will publish the necessary documents for CASP authorization applications once the European Commission finalizes RTS and ITS. Until then, interested parties can refer to draft guidelines by the ESMA to prepare their submissions.
The transition period permits those CASPs already registered under national laws to continue their business until the middle of 2026. But for new entrants into the market, MiCA regulations need to be adhered to from now on. Those who are obtaining authorization shall have to send notifications to CySEC. So that their inclusion into the CASP register of the European Economic Area may proceed.
At the start of the countdown, market actors will then have to position their operations in such a way that their activities will be in compliance with the requirements of MiCA. Additionally, enables a seamless transition toward continued service provision under the EU harmonized regulatory regime.
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