According to letters submitted to the European Securities and Markets Authority (ESMA) by several crypto industry associations, the regulatory authority will face great difficulties in processing applications from Crypto Asset Service Providers (CASPs) in a short period of time.
MiCA is implemented in two phases, with June already targeting stablecoin issuers, and the focus in December being on the registration and licensing of CASPs. However, as some technical standards were not finalized until October, regulatory authorities in each country only have two months to deal with the complex regulatory adjustments and application process. Industry associations have requested a 6-month "no-action" period, but ESMA has currently rejected the proposal and can only provide "guidance" on the timeline at the meeting on December 11.
Industry insiders point out that if licenses cannot be obtained on time, some crypto companies may be forced to temporarily suspend their operations in the EU, which will have an adverse impact on users and businesses, and damage the EU's image. Currently, countries such as Ireland, Portugal, Poland, Spain and Italy are considered to be facing greater challenges, while countries that already have crypto regulations, such as Germany and Malta, also need to spend time adjusting to meet the MiCA requirements.
