MiCA’s impact on the future of crypto landscape: expert take

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Worldwide, financial technology companies face a more complex regulatory environment. As a result, elaborate legal frameworks have emerged to govern the activities of entities like crypto asset service providers (CASPs), cryptocurrency exchanges, investment firms, forex brokers, banks, and other financial institutions, particularly in Europe.

Europe’s evolving crypto regulatory landscape

In simpler terms, the rules governing cryptocurrencies in Europe have undergone major transformations. New regulations have been introduced to bolster consumer security, financial resilience, and progress. A notable advancement is the Markets in Crypto-Assets Regulation (MiCA), which seeks to establish a unified regulatory structure for crypto assets across the European Union (EU).

The European Union’s Markets in Crypto-Assets Regulation (MiCA) is a crucial legislative framework that provides guidance in the complex crypto asset market. It establishes clear rules for market participants, with the goal of creating uniformity in the regulations governing the creation, facilitation of transactions, and trading of crypto assets. Key aspects include granting licenses, setting ethical business standards, and implementing measures to prevent unlawful activities such as market manipulation.

MiCA’s main objective is to bring legally definitive guidelines to the crypto sector in the EU, making instructions clear and uncomplicated for businesses.

MiCA streamlines the procedure for securing approval to function as a crypto-asset service provider (CASP) throughout the EU, transitioning from a complicated mosaic of country-specific licenses to a single, harmonized framework.

The essential steps for securing a license under MiCA were highlighted, focusing on the authorization procedure for digital asset issuers, reporting responsibilities, preparation for compliance, and maintaining ongoing compliance. As per the instructions, organizations need to grasp and follow regulatory rules, accurately categorize crypto assets, and keep updated with emerging guidelines and legal interpretations.

MiCA regulation, which covers certain entities and includes provisions for stablecoins, will be gradually enforced starting from July 2024. Affected parties are recommended to prepare for this new framework within a timeframe of 12 to 18 months following the enforcement date.

Crypto Asset Service Providers (CASPs) greatly benefit from the assistance of legal services as they maneuver through the rapidly changing regulatory environment. MiCA represents an important advancement, but it’s essential to keep in mind that it’s not the last word on regulatory adjustments in the EU.

Crypto Asset Service Providers (CASPs) rely heavily on the expertise of legal services as they navigate the complex and rapidly changing legal landscape. These professionals help develop businesses by keeping up with new regulations and laws, such as MiCA (Markets in Crypto-Assets Regulation). However, it’s essential to remember that MiCA is just one step in the regulatory evolution within the EU, meaning further changes are expected.

Mark Gofaizen, senior partner at Gofaizen & Sherle.

“As experts in crypto consulting and law at Gofaizen & Sherle, we recognize that MiCA provides a clear and open regulatory structure for most CASPs to function. Nevertheless, obstacles including escalating costs and intricate procedures continue to pose difficulties,” Mark Gofaizen stated.

He pointed out that regulatory updates in the EU significantly influence the crypto sector’s evolution, marking the start of an industry concentration period. This trend might result in fewer CASPs (Central Application Service Providers) over the past ten years. However, it is essential to keep in mind that these regulations contribute to a more mature and transparent business ecosystem for the future, according to Gofaizen.

Gofaizen & Sherle is a law firm specializing in fintech, with locations in Europe (Estonia and Lithuania), as well as in Poland, Germany, the Czech Republic, Canada, the UAE, Hong Kong, El Salvador, and other countries. They provide services for clients looking to start projects, register businesses, acquire licenses, and offer ongoing support, all tailored to the specific needs of the fintech industry. With over 1000 projects completed for more than 400 clients, Gofaizen & Sherle has a significant impact in this field.

Mark Gofaizen explained that our firm provides clients with a wide array of services, which go beyond crypto accounting and reporting to also include legal assistance for setting up physical offices. He stressed that preparing for MiCA is a multifaceted challenge, reaching beyond operational procedures to involve employee education, data management, and the swift adoption of innovative business strategies. To ease their burden, our company assumes responsibility for handling the necessary paperwork, thereby allowing CASPs (Crypto Asset Service Providers) to concentrate on their primary business functions.

Team members 

Gofaizen & Sherle boast a rich assortment of departments designed to cater to their clients’ varied requirements. Among these are: the Crypto and Blockchain Consulting Team, the FX and iGaming Consulting Unit, the Legal Division, the Operations Sector, the Business Development Squad, the Accounting Bureau, and the Human Resources Department.

Mihhail Sherle, our senior partner and legal head, takes charge of the team. In contrast, Maxim Gasanbekov is our associate partner and heads up the Crypto and Blockchain sector’s sales division.

At the company, Leonid Turok holds the position of senior associate and leads the sales team in the FX and iGaming sector. Meanwhile, Kiryl Zaremba assumes the role of senior associate and is responsible for managing business development within the same sectors.

This article is done in partnership with Gofaizen & Sherle.

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2024-04-13 00:20