With only three weeks left before the implementation deadline, nearly a quarter of the 27 EU countries are not yet prepared to enforce the Markets in Crypto Assets (MiCA) regulation. To comply, member states must align their local laws with MiCA, but countries such as Belgium, Italy, Poland, Portugal, Luxembourg, and Romania have yet to do so. Trade associations representing the crypto industry are concerned that the European Commission and European Securities and Markets Authority (ESMA) are not taking the situation seriously enough, despite the looming deadline.
The implementation of MiCA is a two-stage process, with the first phase having occurred in June, and the second phase, which is the focus of the December deadline, involving crypto asset service providers (CASPs) such as exchanges, wallet providers, and custodians. These firms must be registered and based in at least one EU country to apply for a license under MiCA.
National regulators are facing challenges due to the short timeframe between the deadline and the finalization of regulatory technical standards in October, leaving only two months to deal with the resulting paperwork and complexity. The trade groups have requested a 'no-action' period of six months to allow firms to continue operating without incurring sanctions, but ESMA has denied the request. The MiCA deadline will be discussed at a meeting on December 11, and ESMA may offer guidance on timing. If firms are unable to obtain a license by the deadline, they may be forced to halt crypto operations, which could have severe consequences for business and users.
Countries such as Ireland, Portugal, Poland, and Spain are struggling to meet the deadline, and even Germany, which is relatively advanced in crypto asset regulation, is experiencing problems due to the need for new legislation to meet MiCA specifications. The legislative process is a significant bottleneck in implementation, with national regulators pointing to their governments as the cause of the delay.