Within 48 months of MiCA’s adoption, major European banks will roll out services for digital assets. Such a forecast дал by Circle’s Director of Strategy and Regulatory Policy in Europe, Patrick Hansen.
The specialist noted that institutions may be interested in custodial storage of digital assets, exchange operations and the issuance of stablecoins.
In October 2022, signed the text of the draft regulation. MiCA includes rules that apply to issuers of unbacked crypto assets, ‘stablecoins’, trading and custodial platforms.
Hansen called the bill a new chapter in the continent’s industry history — its adoption could remove barriers to attracting capital, talent and companies, and provide an opportunity for the economic and technological revival of the EU.
Before MiCA was developed, companies in the region had to “knock on the door” of each individual national regulator, he noted.
In a number of countries such as France and Germany, specialized licensing regimes for crypto startups have been implemented, while others, like Ireland, obligations for AML-registration. In most other EU member states there was no regulatory framework for industry representatives.
Navigating such a complex regulatory landscape was costly and burdensome, the specialist noted.
Thanks to MiCA, the EU’s mandatory requirements will apply to all 27 members of the union. After obtaining the corresponding licence in one country, a company will be able to passport it and offer a licensed service on the single European market.
Offshore unregulated crypto firms will no longer be able to actively target clients in the EU — the rules of reverse solicitation for them will be stricter than for TradFi. This will lead to a redistribution of market share in favour of regulated MiCA companies, Hansen predicted.
The expert also pointed to the growth potential of institutional involvement in the new asset class. Currently, the share of local firms that have adopted cryptocurrencies does not exceed 4%, according to Bloomberg. The main obstacle for those who avoid this opportunity, выступает regulatory uncertainty.
Hansen warned that the benefits of MiCA largely depend on the forthcoming development of practical implementation standards. The expert urged crypto companies to work closely with EU regulators in the next 12–18 months — EBA and ESMA — to shape rules conducive to industry growth.
In September 2022, Binance CEO Changpeng Zhao called MiCA ‘fantastic’, but ‘a little strict’ regarding stablecoins.
Early 2023, the European Parliament pushed the final vote on the document to April.
In March, Circle in France submitted applications for local licenses as a digital asset service provider and an electronic-money institution.
The company plans to deploy its flagship product for the local market — the euro-denominated stablecoin EUROC — and launch the process of its recognition in accordance with MiCA.