The EU crypto industry faces its first major compliance deadline this month –

At the end of the month, the cryptocurrency industry in the European Union (EU) will face its first major compliance deadline under the new regulatory framework.

The Markets in Crypto Assets Regulation (MiCA), approved by the EU last year, aims to introduce a set of rules and regulations aimed at protecting investors and consumers, as well as strengthening anti-money laundering measures in the cryptocurrency sector.

On June 30, 2024, MiCA’s jurisdiction will include stablecoins—cryptocurrencies pegged to traditional fiat currencies such as the euro or dollar. To issue such stablecoins in the EU, companies must have an e-money license and prove they have adequate reserves to maintain the peg.

Crypto companies are preparing for a new rule change

In anticipation of the deadline, some companies, such as Binance, the world’s largest cryptocurrency exchange, have already taken steps to limit access to stablecoins that do not meet MiCA requirements.

Coinbase, another major player in the industry, has expressed concerns that several stablecoins may need to be phased out to meet the new standards.

The implementation of MiCA is part of a broader effort to bring the cryptocurrency industry into compliance with traditional financial regulations.

MiCA stablecoin regulations will apply across the EU on June 30.

The EU figured out how to regulate this market before the United States did.

Now it looks like stablecoin issuers and providers are starting operations in Europe and aligning with EU standards.

Big missed opportunity 🇺🇸

— Jake Chervinsky (@jchervinsky) June 10, 2024

Coinbase, which has established a significant presence in Ireland, intends to make Ireland its main regulatory center for MiCA compliance. The company believes that adhering to higher standards and supporting transparency will elevate the industry and increase credibility with customers and regulators.

While Coinbase has committed to operating in compliance with Ireland’s MiCA directive, other companies have not yet decided on a preferred location. For example, Binance has a presence in Ireland but has not disclosed its decision to comply with the new regulation.

The Central Bank of Ireland plans to open the authorization gateway early in the third quarter of this year.

In July, the Bank will organize an industry event during which it will inform companies about the application process and expectations.

Compliance with MiCA will not only improve anti-money laundering controls, but also create new investment and transaction opportunities.

The regulatory framework provides greater investor confidence and favors companies that have successfully navigated the regulatory environment.

Some venture capital firms, such as The Hashgraph Association, are actively looking for early-stage cryptocurrency and Web3 startups to invest in, considering regulatory compliance to be a valuable asset.

Ireland is becoming a cryptocurrency center in the EU

Last week, the CBI approved Crypto.com as a Virtual Asset Service Provider (VASP).

Currently, the list of registered VASPs in Ireland stands at 14 entities, with well-known names including Ripple, Gemini, MoonPay, Standard Chartered’s depository platform Zodia and Paysafe.

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Ireland has become an attractive destination for cryptocurrency companies thanks to the country’s efforts to foster innovation and create a supportive environment.

In 2018, the Irish government established an innovation hub that provides financial technology companies with a platform to engage more informally with the Central Bank of Ireland.

Disclaimer: Crypto is a high-risk asset class. This article is for information purposes only and does not constitute investment advice. You can lose all your capital.