Crypto Firms Need Approval in One EU Nation to Serve All 27
– Binance, the world’s largest crypto exchange, is facing regulatory pressure from the US and EU.
– The new MiCA regulation allows companies to apply for one license in one country and serve all 27 EU member states.
– Binance has withdrawn from several European markets and is focusing on compliance in fewer jurisdictions.
– The exchange is currently registered in France, Italy, Lithuania, Spain, Poland, and Sweden.
– Not all EU nations are equally prepared to implement MiCA, with countries like Italy and Spain having simpler registration processes compared to Germany.
Choosing a Jurisdiction
– Some EU countries have established robust crypto licensing regimes, while others have simpler registration processes.
– Germany has a complex licensing process and requires crypto firms to have a strong presence and infrastructure in the country.
– France is actively courting crypto firms with its own MiCA-ready licensing regime.
– Binance is registered with the French financial watchdog but is under investigation and its chances of getting licensed are uncertain.
– France may be the likely path to MiCA compliance for Binance and other companies.
Hot Take
While the new MiCA regulation simplifies the process for crypto firms to operate in the EU, the readiness of individual countries to implement it varies. Binance, facing regulatory pressure in multiple jurisdictions, is narrowing its focus on compliance in select European countries. France, with its MiCA-ready licensing regime, may be the best option for Binance to achieve compliance. However, the ongoing investigation in France adds uncertainty to the exchange’s chances of obtaining a license. The success of crypto firms in Europe will depend on their ability to navigate the differing regulatory landscapes and choose the right jurisdiction for compliance.
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