MoonPay and a few other exchanges got MiCA licenses

-

MoonPay, along with BitStaete, ZBD, and Hidden Road, has officially secured Markets in Crypto Assets licenses from Dutch regulators.

This means they can now operate across all 27 EU countries.

According to the plan

The Dutch Authority for the Financial Markets, the AFM confirmed these approvals on December 30, 2024. MoonPay’s CEO, Ivan Soto-Wright, couldn’t be more thrilled, stating that MiCA represents a pivotal moment for Europe’s digital asset sector.

He added that they’re proud to be among the first to adopt this new regulatory framework.

So, what exactly is MiCA? It’s designed to create a standardized set of rules for cryptocurrency firms throughout Europe.

This includes the Crypto Asset Service Provider license, which allows companies approved in one EU country to operate in all member states.

Obedience

The MiCA regulations are rolling out in phases, with the first part focusing on stablecoins and set to take full effect on June 30, 2024.

The December 30 deadline expanded these rules to cover all regulated tokens and coins.

This means that companies like BitStaete, a digital asset management firm, ZBD, a Bitcoin lightning fintech platform, and Hidden Road, a prime brokerage can now expand their operations under this unified regulatory framework.

But it’s not just MoonPay making moves in case of the new regulations, but Socios.com, a fan engagement platform, also announced that it received a Class 3 Virtual Financial Assets Act license from Malta’s Financial Services Authority.

For our safety

While MiCA wants to bring clarity and stability to the crypto market, it hasn’t come without concerns. Some rules could raise operational costs for smaller firms.

For example, stablecoin issuers must keep at least 30% of their reserves in low-risk EU banks.

I mean, Bitcoin is exist, because banks are the risk. Bigger players like Tether and Circle have it tougher, needing to maintain 60% or more in similar institutions.

Agne Linge from decentralized finance platform WeFi highlighted that these requirements could be financially burdensome for smaller stablecoin issuers.

Meanwhile, Uldis Teraudkalns from Paybis predicts that many companies might start looking for friendlier regulatory environments elsewhere, cue the UAE as a top contender.

Dmitrij Radin from Zekret believes that while regulations can be tough, they ultimately help mature the market by attracting more users and funds over time, but he also warns that increased scrutiny could make things trickier for everyday crypto users.

Have you read it yet? No, there’s no Phantom airdrop, and no Phantom token


Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

LATEST POSTS

No crypto for Brazil pension funds

Brazil just dropped a bombshell on the crypto industry. The National Monetary Council, the CMN has officially barred closed pension funds from investing in Bitcoin...

Tether and the $735 million power play

Tether just made a move that's gonna shake the crypto world. They dropped a cool $735 million on Bitcoin, buying 8,888 BTC and catapulting themselves...

Japan will re-classify cryptocurrencies from payments to financial products?

Japan is about to shake things up in the crypto industry. The Financial Services Agency is planning to classify cryptocurrencies as financial products, not just...

GUNZ, the newest gaming blockchain

Let me tell you something, there’s a new player in town, and it’s shaking up the gaming world. Meet GUNZ, a Layer 1 blockchain platform...

Most Popular

Guest posts