Cryptocurrency

Study Reveals 91% of Crypto Firms Unprepared For EU Regulation


MiCA, the European Union’s Markets in Crypto Assets Regulation, is poised to reshape the cryptocurrency industry, but a new study reveals alarming unpreparedness among affected firms. The report, conducted by Acuiti and commissioned by Eventus, shows that 91% of crypto companies are not ready for this landmark regulation.

Set to introduce one of the first comprehensive regulatory frameworks for crypto trading in a major financial market, MiCA’s impending implementation highlights an urgent need for companies to accelerate their compliance efforts. The findings underscore the potential for significant operational and financial consequences for firms that fail to adapt in time.

MiCA Compliance Crisis: Insights and Challenges from the Acuiti Report

In a startling research, the cryptocurrency industry appears to be facing a compliance crisis as it prepares for the European Union’s Markets in Crypto Assets Regulation (MiCA). A report commissioned by Eventus and conducted by Acuiti has shed light on the industry’s state of readiness for this landmark regulation.

The study, titled “The Impact of MiCA on Crypto Market Surveillance: Insights and Challenges,” surveyed senior executives from 68 firms involved in crypto trading. The findings are concerning: a mere 9% of firms falling under MiCA’s scope claim to be fully prepared for the new regulations. Even more alarming, a quarter of the firms surveyed have not even begun their preparations.

MiCA, slated to take effect at the end of this year, is poised to be one of the first comprehensive regulatory frameworks for crypto trading in a major financial jurisdiction. Its market surveillance requirements, which draw heavily from the EU’s Market Abuse Regulation (MAR), are expected to pose significant operational challenges, particularly for crypto-native firms.

The report also highlights a growing trend towards outsourcing compliance needs. A substantial 64% of firms plan to turn to third-party software vendors to meet the new regulatory demands. However, finding suitable vendors remains a major obstacle for many companies. Travis Schwab, CEO of Eventus, emphasized the unique challenges digital assets present for trade surveillance and stressed the importance of robust systems capable of handling real-time alerts.

Also Read: TRON Founder Justin Sun Dumps 173M TRX To Binance, Price Dip Ahead?

Industry Responses and Strategic Partnerships

In anticipation of MiCA, several firms are taking proactive steps to ensure compliance. Financial service provider and stablecoin issuer Circle has announced a strategic partnership with Adan, a leading association that connects professionals in the digital asset and blockchain sector throughout France and Europe. This partnership aims to prepare for the official launch of the MiCA regulatory framework in Europe.

Additionally, Uphold, a crypto exchange headquartered in New York and a Ripple On-Demand Liquidity (ODL) partner, has announced plans to remove support for multiple stablecoins. This move is in direct response to the forthcoming MiCA regulations set to take effect in the European Economic Area (EEA).

These developments show the urgency and widespread impact of MiCA, as companies strive to align with the new regulatory landscape.

Also Read: Fantom Wins Lawsuit As Court Overturns Lower Court Ruling

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