A new set of rules that European Union (EU) cryptocurrency exchanges must follow come into force in 2025 as part of the Regulation for the Cryptoasset Market (MiCA).
This is a set of rules that determines how bitcoin (BTC) exchanges and other cryptocurrencies in the region will operate starting this Monday, December 30. This, after the changes that are already being implemented with the application (in the middle of the year) of the first phase of the MiCA law, focused on stablecoins.
Among the guidelines, which will be applied from next January, the “Travel Rule” stands out. A group of precepts that exchanges – legally identified as service providers or CASPs – must now implement. This, following the orders of the European Banking Authority (EBA).
It is thus understood that, during this new year, the 27 countries of the bloc will be very busy making the necessary adjustments to meet the deadlines established for MiCA to be launched and generate a new dynamic in the functioning of the eurozone ecosystem.
As announced by ABE, under this regulation, platforms that carry out operations with cryptocurrencies in the EU will now have to collect information from users, identify whether their transactions are related to the purchase of legal goods, services, and follow up to the transfers with which they are linked.
Additionally, they will have to declare their intermediation and cross-border transfer policies. The objective is detect any activity that may appear illegal.
MiCA arrives amidst controversies
As NoticiasVE has reported, the arrival of MiCA is not without controversy and the debate on the advantages and disadvantages of MiCA was resumed a few weeks ago, just days before the regulations come into force. Opinions are divided and there are those who question all these demandsdue to its implications for the privacy of cryptocurrency users, which is why they fear its possible repercussions.
On the other hand, there are those who support the Regulation and highlight some of its benefits. Among them is Patrick Hansen, Director of Strategy and Policy for Europe at Circle, who believes that with the new law “things will be easier for cryptocurrency companies.”
This is what he explained in X, pointing out that EU regulations promote banking access for cryptocurrenciesplacing the region as a leader in the number of banks that offer bitcoin services.
The other voices are raised alerting about vulnerabilities to which European users are likely to be exposed. Tuur Demeester, an economist and bitcoiner, spoke on this topic a few days ago, who sees the travel rule and MiCA as “a trap.”
Demeester explains how, beyond the usual KYC (“know your customer” policy), exchanges will require personal data that will allow them to determine whose cryptocurrency address is and its relationship with other addresses involved in a transaction.
Hence the fears that MiCA generates and the repeated recommendations to resort to self-custodytaking into account the importance that privacy has for bitcoiners.
MiCA starts with delays
Following the schedule established by the European Banking Authority (EBA), once the Regulation comes into force this end of the year, cryptocurrency platforms will have a period of two months to declare their adherence to the Travel Rule, and more than one year to apply the standards 100%. These are times of transition that seek to facilitate adaptation.
However, there have been delays, according to a report published by the consulting firm Acuiti, within the framework of an investigation into the impact of MiCA on the European market.
So far, most exchanges they have not defined the adaptation process and companies still do not have clear information about the application of the rules. There are many platforms that are still in the process of adapting their infrastructure to meet the demands, which involves the installation of more specialized software and tools.
It is also known, from statements by a group of cryptocurrency and blockchain trade associations, that the delays also affect the governments of the 27 EU countries, most of which They are not prepared for the legislation. A situation that could cause many companies to have to stop your operations.
Hence they have requested the European Securities and Markets Authority (ESMA) a six-month “no action” period for law enforcement, in order to move forward in this process. As far as is known, the authorities have refused to change the schedule.
In this way, the arrival of MiCA is subjecting governments and companies to many pressures, which will possibly worsen as 2025 passes, the transition period ends and the first results of the new regulation begin to be seen.