The European Union’s first united framework to regulate crypto assets, Markets in Crypto-Assets (MiCA), has been rapidly taking shape. MiCA is now the law of the land across all 27 EU countries, requiring exchanges, stablecoin issuers, and token platforms to follow the same regulations. It has been 100 days since MiCA’s full application came into effect, and only 11 stablecoin issuers have received approval.
The total stablecoin market is approaching the $250 billion mark, with Tether remaining at the top of the list. Germany has emerged as a dominant force in the application of MiCA. Patrick Hansen, Senior Director of EU Strategy and Policy at Circle, revealed a list of authorized stablecoin issuers and crypto-asset service providers under the MiCA regime. Eleven entities across six EU countries have been approved to issue e-money tokens (EMTs), including single fiat currency-backed stablecoins.
A total of 16 EMTs have been issued so far, with 10 euro-denominated and 6 dollar-denominated tokens. Additionally, 15 MiCA Crypto-Asset Service Providers (CASPs) from six EU countries have been authorized. Germany leads the way with 6 CASPs, followed closely by Malta with 5 CASPs. These approvals allow platforms to offer a range of services, including trading, custody, execution, exchange, and transfers. Notable traditional finance (TradFi) entrants like BBVA, Clearstream, and Flatex have also entered the market.
However, zero authorized asset-referenced token issuers are currently on the list, and 15 firms have been listed as non-compliant entities by Italy’s CONSOB. There are also 25 white papers notified for crypto-assets that are not EMTs or ARTs, covering major cryptocurrencies like Bitcoin and Ethereum.
MiCA has become essential for these platforms as there is no passporting of services across the 30 EEA countries with the license. The next update on the growing list of authorized entities is expected in six months. In the midst of regulatory changes, the digital assets market has seen a resurgence, with the cumulative crypto market cap surpassing $2.7 trillion as Bitcoin prices surged by over 8% in the last 7 days.
Furthermore, Google Ads are now subject to EU crypto law, with a deadline set for April 23. Crypto exchanges and wallet providers looking to run ads on Google must now obtain a license under the EU’s MiCA framework or register as a Crypto Asset Service Provider. Google is implementing a certification process, offering a warning and a 7-day grace period before suspending platforms that fail to comply with the new regulations.
Overall, the EU’s MiCA framework is aimed at bringing greater regulation and transparency to the crypto market. As the industry continues to evolve, compliance with these regulations will be crucial for companies looking to operate within the European market.