An 18-Month Transition Period
According to a recent report, the regulations governing crypto-asset services under MiCA will not be enforced until December 2024. This means that during this period, crypto-asset holders and service clients will not have access to EU-level regulatory protections or the ability to file complaints against service providers with their National Competent Authorities (NCAs).
The report also highlights that even after the MiCA regulations become applicable, Member States have the discretion to offer an 18-month “transitional period” to entities already offering crypto-asset services in their regions. This allows them to continue operations without a MiCA license, known as a grandfathering clause.
Therefore, it is possible that crypto-asset holders and clients may have to wait until July 1, 2026, to fully enjoy the rights and protections granted under MiCA.
Requesting an Extended Transition
A day before this report, the Electronic Money Association, representing fintech firms like Revolut and PayPal, formally petitioned the Department of Finance for an extended transition period. They are seeking additional time to adapt to the upcoming regulatory framework imposed by MiCA.
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