According to PANews, with only three weeks remaining until the European Union's Markets in Crypto-Assets Regulation (MiCA) comes into effect at the end of the year, nearly a quarter of the EU's 27 member states are reportedly unprepared. Countries such as Belgium, Italy, Poland, Portugal, Luxembourg, and Romania are among those not ready for the new regulations.
Several cryptocurrency industry associations have expressed concerns to the European Securities and Markets Authority (ESMA) about the significant challenges regulators face in processing applications from crypto asset service providers (CASPs) within a short timeframe. MiCA is being implemented in two phases, with the first phase in June focusing on stablecoin issuers, and the upcoming December phase concentrating on the registration and licensing of CASPs. However, with some technical standards only finalized in October, national regulators have had just two months to adapt to the complex regulatory changes and application processes. Industry associations have requested a six-month "no-action" period extension, but ESMA has rejected this proposal, offering only potential guidance on the timeline during a meeting on December 11.
Industry experts warn that if licenses are not obtained on time, some crypto businesses may be forced to halt operations within the EU, negatively impacting both users and companies and potentially harming the EU's reputation. Countries like Ireland, Portugal, Poland, Spain, and Italy are seen as facing significant challenges, while even nations with existing crypto regulations, such as Germany and Malta, will need time to adjust to comply with MiCA requirements.