MiCA Compliance: Why Waiting Is Risky for Crypto Businesses

The MiCA crypto regulations in Europe are adopted and recently promulgated. However, its effective entry into force will have to wait until 2024 to be fully effective. For Janet Ho, an executive at Chainalysis, companies shouldn’t give cause for not starting to comply.

Chainalysis urges crypto firms to prepare for compliance

While the MiCA standards are promulgated, crypto firms should not wait for its operationalization to consider complying with it. The blockchain data analytics platform is calling on industry players to start preparing for it already.

It is true that part of the MiCA standards will come into force on 29 June. With regard to the rest of the rules, it will be necessary to wait an additional year, from this date, to see them apply.

But a race against the clock is already underway with regard to the compliance of crypto companies. It is what Janet Ho explained in particularthe chief strategist of Chainalysis, in a webinar about European crypto regulations.

His explanations suggest that crypto companies wishing to enjoy European crypto standards should not skimp on formalities. The latter must be initiated as soon as possible to avoid setbacks linked to the delays in issuing licenses.

Because, she explains, it would be necessary for a crypto company to wait between 4 and 5 to be issued a MiCA license. This scenario is only valid in the best of all possible worlds. At worst, the desired authorization will have to wait a much longer period to obtain.

“If you want to continue your activities, you must take into account these 4 to 5 months or more”, said the manager. “These are the preparations that must begin now, maybe even yesterday,” she added, recalling the advantages of the procedure, in the long term.

The MiCA license gives a firm carte blanche to operate in any chosen EU member country. This, without the need to initiate additional procedures in the State concerned.