According to reports, fintech companies that operate with cryptocurrencies in Europe are requesting that European authorities provide them with ample time to adapt to the new regulations known as the Crypto Asset Markets Regulation (MiCA).
More specifically, members of the Electronic Money Association, which includes companies like Revolut, PayPal, and other crypto firms, have directly approached the Department of Finance to ask for an extended transition period, allowing them more time to comply with the rules.
Starting in December 2024, MiCA’s new regulations will be in effect across all European Union countries. MiCA aims to bring uniformity to the licensing and oversight of cryptocurrency companies in Europe by imposing stricter anti-money laundering (AML) standards.
It seems that after the implementation of MiCA, fintech firms will have a maximum grace period of 18 months to keep operating under the new rules. However, this period can potentially be shortened.
Revolut, PayPal, and cryptocurrency companies are in favor of allowing each EU member country to decide on a maximum time frame, which is 18 months.
Ireland has already expressed its intention to maintain the full 18-month period specifically for cryptocurrency service providers (CASPs).
A spokesperson for the organization stated that this extended time will allow CASPs and the regulatory authority to adequately prepare for complying with and implementing the new regulations.
Currently, several major cryptocurrency companies like Gemini, Coinbase, and Binance have offices in Ireland, and they may need to obtain regulatory approvals under the Markets in Crypto-Assets Regulation (MiCA) within the Irish jurisdiction.
Also Read: Malta Aligns Crypto Regulations with EU’s MiCA for 2024
