Europe’s MiCA law is motion, but can the crypto industry keep up?
The European Union's Markets in Crypto-Assets regulation (MiCA) is in its implementation phase, aiming to standardize crypto regulation across all 27 member states. Key provisions include licensing requirements for crypto asset service providers (CASPs) and strict rules for stablecoins, which cannot be offered to EU users without authorization and a regulator-approved white paper. Tether's USDt (USDT) will not seek compliance, potentially leading to its delisting from exchanges in the EU, affecting liquidity and DeFi activities. In contrast, BitGo has secured a MiCA-aligned license in Germany, indicating a proactive approach to compliance and strategic alignment with EU regulations. The need for consistent national interpretation and better regulatory guidance is emphasized to avoid fragmentation in the market.
