Electronic Money Association members such as Revolut, PayPal and other crypto companies are asking for as much time as possible before implementing the Crypto Asset Markets Regulation (MiCA).
Revolut, PayPal and crypto companies ask for the longest transition time to comply with MiCA
According to reports, it appears that fintech companies using cryptocurrencies are urging European institutions to allow as much time as possible to comply with the new rules of the Crypto Asset Markets Regulation (or MiCA).
Specifically, it is members of the Electronic Money Association, including Revolut, PayPal and other crypto companies that have directly asked the Department of Finance for the longest possible transition period.
Essentially, MiCA’s new rules will apply to all European Union countries starting in December 2024.
MiCA wants to standardize the licensing and regulation of crypto companies in Europe by introducing stricter AML requirements.
In this regard, it appears that the maximum time after MiCA comes into effect in which fintech firms will be able to continue operating is 18 months. However, this is a period that apparently can also be reduced. Here is the reason for the request.
Revolut, PayPal and crypto companies want the maximum transition time of 18 months
In general, while European institutions provide the maximum transition time of 18 months to comply with MiCA, it seems that this period can be changed at the discretion of countries.
Hence Revolut, PayPal and crypto companies would like all EU member countries to be able to decide for the maximum time, namely the 18 months.
In this regard, Ireland has reportedly already stated that it should precisely keep the full 18 months for cryptocurrency providers (CASPs).
A spokesperson for the organization has precisely said that during this time CASPs and the regulator will have time to prepare for compliance and implementation of the new regime.
At the moment, there are offices of some major crypto companies in Ireland, such as Gemini, Coinbase, and Binance, which may require regulatory approvals under MiCA in Ireland.
The situation in France
While MiCA was last signed into law on 31 May 2023 and will go into effect in December 2024, it appears that some member countries such as France have been in the process of updating their crypto regulations since August 2023.
Specifically, the Autorité des marchés financiers (AMF) is considering the “enhanced” registration of digital asset service providers, called DASPs, introduced by the DDADUE law.
These changes would take effect in France on 1 January 2024, bringing forward by perhaps more than a year, all the work being done by the MiCA Regulation.
In addition, the new French regulations also want to align the licensing requirements for DASPs with those for the European authorization of crypto-asset service providers, or CASPs, also under MiCA.