Challenges Persist as MiCA Framework Takes Effect
One hundred days after the Markets in Crypto-Assets (MiCA) framework came into force, the cryptocurrency industry is still grappling to comply with the new regulations.
According to Circle’s executive Patrick Hansen, who referenced data from the European Securities and Markets Authority (ESMA), only 11 stablecoin issuers and 15 crypto-asset service providers (CASPs) have obtained authorization under MiCA.
The slow progress highlights the difficulties that companies are facing in meeting the stringent compliance requirements set out by MiCA.
Hansen pointed out that without a MiCA license, crypto firms are unable to offer their services across the 30 countries in the European Economic Area (EEA), prompting them to expedite their licensing efforts.
However, Hansen also highlighted some key gaps in compliance, noting that no asset-referenced token (ART) issuers have been authorized yet.
Regulators have only received around 25 white papers for digital assets that do not fall under EMT or ART classifications, covering popular tokens like Bitcoin and Ethereum.
Italy’s financial regulator, CONSOB, has taken steps to crack down on non-compliant entities by adding 15 names to its list, signaling increased scrutiny under the new regulatory framework.
Licensed Stablecoin Issuers
Since the implementation of MiCA, 11 stablecoin issuers from six EU countries have been granted approval to issue e-money tokens (EMTs). Regulators have authorized a total of 16 EMTs, with 10 pegged to the euro and six to the US dollar.
The list of approved entities includes Circle (issuer of USDC), Banking Circle, Fiat Republic, Quantoz Payments, Membrane Finance, Salvus, Societe Generale, StablR, Stablemint, and Schuman Financial.
Interestingly, Tether, the issuer of the popular stablecoin USDT, has not been included in the list of approved entities. Non-compliance with MiCA standards has led to the delisting of Tether from several EU-based exchanges.
However, Tether has introduced its Handron platform and invested in Quantoz Payments as part of its strategy to address regulatory challenges.
MiCA-Compliant CASPs
ESMA has approved 15 crypto-asset service providers (CASPs) that comply with MiCA regulations.
These authorized providers include prominent crypto platforms like Crypto.com, OKX, Bitpanda, eToro, and Crypto Finance, as well as traditional financial institutions like BBVA, Clearstream, and Flatex.
Notably, some previously listed firms, such as MoonPay and Hidden Road, are no longer on the registry, indicating possible changes in their status or ongoing regulatory reviews.
Germany leads the region with six licensed CASPs, followed by Malta with five.