With the arrival of the European agreement voted by the parliament, MiCA (Markets in Crypto-assets), the European Union has a powerful tool to regulate the cryptocurrency market.

The main objective of this law is to combat money laundering, terrorist financing and protect people from those who are responsible for scams and fraudulent arrangements. The EU has thus created a basis for the development of this industry in a clear and understandable framework. This was not the case in the past. It should also be noted that this text supports the regulation on cash transfers (TFR).

The first major change that will affect the industry is the requirement to register with crypto service providers. This obligation is already applied in traditional finance, so it is a standardization of the transparency criteria already applicable to centralized finance. In concrete terms, crypto asset service providers (CASP) will now have to register and provide accurate identity data if they wish to operate in the EU. It will require providers of services in the crypto-asset field to transmit certain information about customers and transactions to the financial institution receiving these transactions. In order to reduce the high carbon footprint of cryptocurrencies, larger service providers will also have to disclose their energy consumption.

The MiCA PSCA scheme will be applicable from 30 December 2024. Crypto asset service providers who can demonstrate that they have provided services in accordance with the applicable national law before that date may continue to provide them for a maximum of 18 months, until 1 July 2026. This applies until they are granted or refused a MiCA approval, the event occurring first being retained.

While these new rules will provide more transparency to the market, they also represent a challenge for exchanges that will have to put in place many new mechanisms to keep their access to the EU market.