Spain Accelerates MiCA Crypto Regulations in Response to EU Pressure

Police & Regulations
Nov 1, 2023 at 08:41 am
  • Spain has expedited the transitional provisions of the EU's MiCA crypto law by six months. 
  • Crypto firms already established in the country will be required to adhere to these regulations by December 2025.

The Spanish government has announced its decision to expedite the implementation of the European Union's cryptocurrency regulation, known as MiCA, by six months. This move is expected to have a notable impact on crypto firms that are already registered in Spain, such as Binance, Kraken, and Coinbase.

MiCA introduces stringent measures aimed at safeguarding consumers within the cryptocurrency industry. Initially slated to take effect at the end of the following year for companies applying for new licenses, those already operating under national law will be granted an additional 18 months to comply. Regulators are concerned that an extended implementation period could potentially put customers of the EU's approximately 2,000 registered crypto companies at a disadvantage.

The Spanish government's objective in advancing the implementation timeline to December 2025, half a year earlier than MiCA's stipulation, is to establish a reliable and consistent regulatory framework. The Ministry of Economic Affairs and the Digital Transformation conveyed this decision in an official press release on October 26.

Furthermore, on October 17, the European Securities and Markets Authority, a supervisory body responsible for overseeing the law, encouraged member states to abbreviate the transition period. This recommendation arises from concerns that an extended period may create a loophole in consumer protection for a potentially significant number of service providers.

Several major players in the crypto industry, including Binance, Coinbase, Kraken, and Bitstamp, are already registered with the Bank of Spain under anti-money laundering provisions.

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