The European Union’s efforts to regulate the crypto industry and provide confidence to investors may take longer than expected. The transition to the Markets in Crypto-Assets Regulation (MiCA) framework, which aims to standardize regulations for crypto assets and service providers across the EU, has been delayed. The European Securities and Markets Authority (ESMA) has stated that MiCA provisions won’t take effect until December 2024 at the earliest. This means that crypto investors in Europe will have to exercise caution as comprehensive protection under MiCA won’t be implemented for another couple of years. During this period, holders of crypto-assets and clients of crypto-asset service providers will not benefit from EU-level regulatory safeguards. Additionally, there will be a transitional period of 18 months for crypto service providers, during which they can operate without a license. The ESMA has highlighted that even after MiCA’s full implementation, it won’t eliminate all risks associated with crypto-assets, as many of them are highly speculative. European authorities have been working to implement and refine industry regulations, with France aligning its local crypto regulations with the MiCA framework. These changes include prohibiting the use of client assets without explicit consent.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇫🇷 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | European Securities and Markets Authority (ESMA), Markets in Crypto-Assets Regulation (MiCA), National Competent Authorities (NCAs), French regulator |
| Currencies | None |
| Securities | None |
