What are the impacts of a second delay in the European Crypto-Assets regulation? From December to February to now April. Translation issue but not only.

The Markets in Crypto Assets regulation (MiCA) has been delayed a second time from February to April due to technical issues related to translating the rules into all 24 official languages of the EU. 

an article writen by Elizaveta Palaznik, Markets in Crypto-Assets (MiCA) Business Consultant. She will be one of the special guests attending the Banking 4.0 international conference.

Translation issues but not only

Some sources affirm hearings with experts – particularly in terms of cryptocurrencies and exchange platforms – are also expected during this additional period.

France takes the lead

While European authorities are still working on reaching a consensus on the crypto vote, France has taken the lead. Banque de France Governor François Villeroy de Galhau called for PSAN (for service providers on digital assets) accreditation to be made mandatory. If a crypto company wishes to provide its services in France it has two options: register for PSAN accreditation (mandatory for service providers on digital assets) or apply for an optional authorisation issued by the AMF within the framework of the 2019 Pacte law.

Various impacts 

Delay in the implementation. Regarding the services providers and token issuers targeted by the regulation, the delay will only postponed the implementation phase not slowing down the need for guidance for these businesses from lawyers, consultants and auditors.

Financial Institutions still waiting. Major financial institutions are waiting for regulatory clarity to provide much-requested crypto related services to their clients.

Not a positive signal. The delay doesn’t give a positive signal in the industry screaming for regulation. It leaves fraudulent actors more time to act.

Discouraging good actors. Good actors who would like to get involved in this activity are discouraged by the lack of uniformity and standardisation at the international level.

Less competition for bad actors. The absence of regulation encourages bad actors, leaving little room for competition. Even though many „good guys” are involved in the crypto ecosystem, it remains difficult to distinguish between them and the scammers.

About the author

With a Masters degree in Applied Economics, a passion for new technologies and education, Elizaveta Palaznik have always been tackling new rising challenges in those fields. Her career naturally expanded over several industries including finance, education and entrepreneurship. During her career, she had the opportunity to contribute to both private and public large organisations such as Ernst and Young and the United Nations.

To this day, you may know Elizaveta for her academic lectures, conferences and business trainings related to digital assets and regulation. She helps crypto-assets companies, law and consulting firms navigating through the European Markets in Crypto-Assets regulation (MiCA). She is a noteworthy leader in the field and is recognised by hundreds of professionals reading her newsletter about MiCA each week.