Europe is rewriting its landmark crypto rulebook MiCA as hard July 1 deadline passes
Key takeaways
- While MiCA is now in full effect in theory, the European Commission is already looking considering which aspects of its regulatory framework need updating.
- The consultation is not a sign that MiCA fell short, however, according to Patrick Hansen, Circle's director of EU strategy and policy.
- "It makes sense to treat it more or less like a version one.
Since then, stablecoins have become central to global payments systems, to which regulators have tried to respond with the composition of their own frameworks.Sebastian Barling, financial regulation partner at Skadden, compared the EU's approach to stablecoins to building a "fortress."The European Union's (EU) transitional grandfathering period under its Markets in Crypto-Assets (MiCA) regulation ends on July 1, forcing crypto-asset service providers (CASPs) who have yet to attain full licensing under the framework to cease operations in the bloc.
While MiCA is now in full effect in theory, the European Commission is already looking considering which aspects of its regulatory framework need updating. The EU's executive branch initiated a consultation in May to assess whether MiCA was still fit for purpose given how the cryptocurrency industry has evolved over the last few years, especially given newer frameworks in other major markets.
The consultation is not a sign that MiCA fell short, however, according to Patrick Hansen, Circle's director of EU strategy and policy.