Spain advances MiCA implementation

Spain to fast-track MiCA, reduce its transition period to 18 months, in contrast to the EU standard transitional period of 36 months

By Shashank Bhardwaj

Published: Nov 1, 2023 06:19:03 PM IST

Updated: Nov 1, 2023 06:27:42 PM IST

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According to a press release by the Spanish Ministry of Economic Affairs and Digital Transformation on Oct 26, the Government has advanced the application of the Markets in Crypto-Assets (MiCA) Act in Spain six months ahead of the July 2026 deadline.

The MiCA Regulation is the first global standard that regulates the crypto assets market holistically, establishing obligations for both crypto asset issuers and crypto assets service providers (CASPs).

To discuss the intentions of Spain behind this move, Nadia Calviño, the acting first Vice President and Minister of Economic Affairs and Digital Transformation of Spain, met with Verena Ross, the President of the European Securities and Markets Authority (ESMA).

The EU's MiCA regulation requires each of the 27 EU member states to determine the duration of the standard's application within their respective countries. In absence of a specific decision, MiCA rules would apply to crypto asset service providers from July 2026.

Given the deadline, there is a 36-month transitional period for the member states from the date of the publication of the MiCA in the Official Journal of the European Union in June 2023.

The transitional period involves a shift from the existing regulatory framework for crypto assets within the EU towards the new Markets in Crypto-Assets (MiCA) Regulation. During this period, CASPs can continue their operations under the current regulatory framework, but they must start preparing themselves for the new MiCA regime.

With the decision adopted by Spain to advance the implementation, their transitional period is reduced to 18 months, meaning the MiCA Regulation will come into force in Spain in December 2025.

During the transitional period, the ESMA and the European Banking Authority (EBA) will approve technical standards for developing MiCA. These technical standards will provide more guidance on how the regulation should be implemented.

A year before the deadline, the Spanish financial regulator, Comisión Nacional del Mercado de Valores (CNMV), will begin granting authorisations to companies that want to provide crypto-asset services in Spain.

The shortened transitional period in Spain will enable businesses to operate under the new regulatory framework sooner, facilitating growth and investment. Moreover, it demonstrates the Spanish Government's dedication to supporting the crypto industry and providing a transparent and supportive regulatory landscape.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash