Revolut, PayPal, and Crypto Companies Request Extended Transition Period for MiCA Compliance
Leading fintech companies, including Revolut, PayPal, and other crypto firms, are urging European institutions to provide them with the longest possible transition time to comply with the Crypto Asset Markets Regulation (MiCA). MiCA’s new rules will come into effect in December 2024 and aim to standardize licensing and regulation of crypto companies in the European Union while introducing stricter anti-money laundering (AML) requirements.
The Request for an 18-Month Transition Period
While the maximum transition time granted by European institutions is 18 months, this period can be altered at the discretion of individual countries. Therefore, Revolut, PayPal, and crypto companies are advocating for all EU member countries to allow the full 18 months. Ireland has already expressed its intention to adhere to the complete transition period, ensuring cryptocurrency providers have sufficient time to prepare for compliance and implementation of the new regulations.
Situation in France
France is one of the member countries that have been actively updating their crypto regulations since August 2023. The Autorité des marchés financiers (AMF) in France is considering enhanced registration of digital asset service providers (DASPs), which will come into effect on January 1, 2024. These changes align with the MiCA Regulation and aim to streamline licensing requirements for DASPs with those for crypto-asset service providers (CASPs) authorized under MiCA at a European level.
Hot Take: Extended Transition Period Crucial for Industry Adaptation
Granting an extended transition period is crucial for fintech companies utilizing cryptocurrencies as it allows them adequate time to adjust their operations and ensure compliance with MiCA’s regulations. The complexity of these regulations, particularly the stricter AML requirements, necessitates careful preparation and implementation. By providing an 18-month transition period, European institutions can support the growth and development of the crypto industry while safeguarding against potential risks. It is essential for all EU member countries to align their transition periods to maintain a level playing field and facilitate a smooth regulatory transition.
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