Leading cryptocurrency companies and fintech providers in Europe are requesting extended transitional periods to comply with imminent EU-wide crypto asset regulations.
Members of the Electronic Money Association, including crypto exchanges and payments apps, directly petitioned the EU for more time to adapt to the new framework called MiCA.
Allowing Adequate Preparation
MiCA imposes stricter licensing and operational standards for crypto firms in the EU beginning in December 2024.
But companies argue they need longer grace periods beyond the maximum 18 months currently proposed to smoothly transition once rules take effect.
They want national EU regulators to have flexibility in setting transitional windows up to the 18-month cap.
Crypto Hub Ireland Acts on Request
Ireland, home to EU offices of major exchanges like Binance and Coinbase, has already expressed intent to maintain an 18-month adaptation period for crypto companies under its jurisdiction.
Per Irish officials, this would enable crypto service providers to properly implement the new requirements along with regulators.
Avoiding Operational Disruptions
The calls illustrate how MiCA’s far-reaching scope requires significant lead time for implementation. Crypto companies want to avoid business disruptions as they overhaul compliance systems and secure necessary licensing.
With trillions in market value at stake, maintaining crypto operations during this shift is crucial. But questions remain around whether EU and national regulators will fully accommodate extension requests as they assert tighter supervision.
Crypto firms hope reasonable transition timelines will allow MiCA’slandmark regulations to bolster consumer protections without upending services people across Europe rely on.