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Slava Demchuk, CEO of AMLBot, said that the implementation of the Markets in Crypto-Assets Regulation (MiCA) will compel 75% of virtual asset service providers (VASPs) in the European Union to halt operations due to compliance challenges. This assertion was made in an Op-Ed published on March 13.
"The MiCA regulation is, in essence, a good legal framework for the crypto industry, but it also has some disadvantages, especially for crypto startups and small businesses," said Demchuk, Co-Founder and CEO. "Looking at the case of Estonia and its implementation of crypto licenses in 2017, it is possible to predict that around 75% of VASPs will need to cease their operations in the EU. Acquiring a MiCA license is expensive… typically around 30,000-80,000 euros, depending on the business model and country of incorporation. Where does that leave the small businesses and the startups? They will not be equipped to comply with MiCA."
According to the European Securities and Markets Authority (ESMA), MiCA is a comprehensive legal framework established by the European Union to regulate crypto-assets and related services. The regulation aims to enhance consumer protection, ensure financial stability, and foster innovation within the crypto market. It introduces uniform rules across EU member states, covering aspects such as transparency requirements, authorization, and supervision of crypto-asset service providers.
