MiCA: Crypto Markets Adapt to Compliance as Implementation Deadline Looms
A recent study conducted by Acuiti on behalf of Eventus sheds light on the upcoming implications of the European Union’s Markets in Crypto Assets Regulation (MiCA) on cryptocurrency trading surveillance. The report, titled “The Impact of MiCA on Crypto Market Surveillance: Insights and Challenges,” interviewed senior executives from 68 firms involved in crypto trading to gauge their preparedness for the regulatory changes.
MiCA Compliance: Progress and Challenges
MiCA, a groundbreaking regulatory framework within a major financial jurisdiction, is driving the need for comprehensive market surveillance systems across the crypto industry. Similar to the EU’s Market Abuse Regulation (MAR), MiCA imposes strict requirements on market participants, establishing new operational standards.
However, the study reveals that only 9% of the surveyed firms are fully compliant with MiCA requirements, while a significant 25% have yet to begin preparations. With the implementation deadline for MiCA approaching by the end of the year, companies are advised to quickly assess their regulatory scope and take necessary compliance measures.
Despite the challenges faced, such as finding suitable third-party software vendors and managing compliance costs, the report highlights a growing sophistication in market surveillance practices. Even among firms initially not included in MiCA’s scope, 57% have already implemented robust surveillance systems.
Outsourcing Trends and Compliance Costs
The study also delves into the consultations on MiCA’s final technical standards, revealing that 25% of affected firms have yet to initiate preparations, while others are at various stages of readiness. Notably, 64% of firms are considering outsourcing system development to overcome challenges in vendor selection and resource allocation.
Key concerns among firms anticipating MiCA’s impact include compliance costs and the acquisition of qualified personnel, reflecting the broader adjustments the industry is making to comply with regulatory mandates. As regulations evolve, industry leaders must adapt to the new rules set forth by MiCA.
As the deadline for MiCA implementation draws near, market participants must prioritize compliance to align with the regulatory framework and ensure the continued growth and stability of the crypto markets.