March 27, 2024
MiCA Crypto Law Implementation Fast-Tracked by Spain
Latest Cryptocurrency News

Crypto Regulation Shake-Up: Spain Fast-Tracks MiCA, Alarming Crypto Industry Giants

Spain has announced its decision to accelerate the implementation of the European Union’s cryptocurrency law, MiCA, by six months. This move is expected to impact existing crypto firms in the country, such as Binance, Kraken, and Coinbase (COIN).

The regulations, which aim to enforce stringent consumer protection measures for cryptocurrency firms, were initially set to become effective at the end of the following year for companies seeking new licenses. However, companies already in operation under national law were granted an additional 18 months. Regulators express concern that an extended implementation period could disadvantage customers of the approximately 2,000 registered crypto companies within the bloc.

The Spanish government aims to bring MiCA into effect by December 2025, which is six months earlier than the stipulated timeline. The Ministry of Economic Affairs and Digital Transformation stated in an Oct. 26 press release in Spanish that the government intends to shorten the transitional period of application to establish a more predictable and stable regulatory and supervisory framework.

The European Securities and Markets Authority, in an Oct. 17 communication, urged countries to reduce the transition period. They fear that the prolonged period could create a consumer protection gap for a significant number of providers. Notably, major crypto entities like Binance, Coinbase, Kraken, and Bitstamp are already registered with the Bank of Spain under anti-money laundering provisions.

Image by freepik

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