Find out what benefits MiCA brings to crypto asset providers. Learn about licensing, cross-border operations, enhanced investor protection, and other advantages MiCA brings to the European crypto market.
The MiCA (Markets in Crypto-Assets Regulation) Regulation is the first comprehensive European Union framework aimed at regulating the crypto-asset market. This is a significant step towards harmonizing legislation across the EU and creating a clear and transparent regulatory environment. The regulation of the crypto market has been a long-standing topic of discussion, mainly due to the risks associated with increased fraud, market instability, and price manipulation.
The purpose of the MiCA Regulation is to eliminate risks while creating a fair, transparent, and secure business environment. The changes introduced by MiCA mainly affect crypto asset service providers, who will only be able to provide crypto services under a license granted by the NBS. This means that consumers can continue to buy, sell, and use crypto assets as before, but from licensed sellers.
Regulation in the crypto world is an important step towards increasing investor protection and thus strengthening market confidence. This sector is thus becoming strictly regulated and will be supervised by the NBS itself. It will take several months for businesses wishing to provide crypto asset services to obtain a license from the NBS. Based on the license granted, crypto asset service providers will be able to offer services such as custody and management of crypto assets, operation of trading platforms, exchange of crypto assets for fiat currencies or other crypto assets, or portfolio advice and management. Entrepreneurs must demonstrate that they have sufficient expertise to provide such services, sufficient capital from reliable and verifiable sources, high standards of corporate governance, etc. An essential part of this is demonstrating internal regulations covering internal control, AML prevention, information system security, the company's organizational structure, and so on.
Many entrepreneurs are concerned about the licensing process, as it can be lengthy and requires the fulfillment of several conditions. However, obtaining a license provides advantages, such as allowing entrepreneurs to provide services across borders through a so-called passport. That is why entrepreneurs should not be afraid of this regulation, but rather see it as an opportunity for long-term and stable growth of their business.
Here is an overview of the advantages of the MiCA Regulation:
Introduction of uniform definitions – The Regulation clearly defines terms such as crypto-asset service provider, crypto-asset, and public offer. This will ensure a uniform interpretation within the EU, facilitating the practical application of the rules.
Single EU license – after obtaining a license from the National Bank of Slovakia or another regulatory authority within an EU member state, crypto asset service providers will be able to operate throughout the EU without the need for additional licenses.
Increased market transparency and integrity – the introduction of regulation strengthens the supervision of market participants, reducing the risk of fraud and price manipulation of crypto assets. This ensures stability and a level playing field.
Harmonization of legislative conditions – having the same rules for doing business with crypto assets across the EU creates the conditions for a healthy and fair business environment, preventing confusion and inconsistencies between countries.
Better access to banking services – a clear regulatory framework will make it easier for crypto asset providers to access banking and financial services, enabling them to operate more efficiently.
Strengthening trust in crypto assets – the absence of uniform regulation could have led to a lack of trust among investors and users. MiCA provides legal certainty, thereby supporting market development and preventing regulatory fragmentation.
Enhanced investor protection – strict anti-money laundering (AML) and counter-terrorist financing (CTF) rules will make investing in crypto-assets safer and more transparent.
Control and transparency of sanctions – service providers will record and make available transaction data, increasing the ability to track suspicious activity and ensuring the security of the financial sector.
Effective market oversight – regulation ensures oversight of crypto assets at both European and national level, contributing to the smooth implementation of MiCA rules across the EU.
Limiting offshore unregulated companies – companies outside the EU that do not meet regulatory requirements will not be able to actively offer their services to EU citizens, which will contribute to consumer protection and market stability.
Reducing crime – crypto assets have often been misused for fraud, tax crimes, or terrorist financing. MiCA will help remove illegal entities and ensure that only licensed and transparent players provide services.
Legal protection for service providers – the regulation sets clear rules for service providers, which may reduce the risk of criminal liability in the event of unintentional misconduct.
The MiCA regulation is an important step towards stabilizing and professionalizing the crypto asset market. Although the introduction of new rules may seem challenging, it actually offers many opportunities for entrepreneurs who want to operate in a regulated and trustworthy market.
Obtaining a license also brings the possibility of expanding their business throughout the EU without the need for additional time-consuming registrations in individual countries. In addition, regulation will help improve relations with banks and financial institutions and strengthen their mutual cooperation.
Entrepreneurs should not perceive the regulation of crypto assets as an obstacle to their business, but rather as an opportunity to gain a competitive advantage. Those who go through the licensing process and meet the required conditions will have the opportunity to establish themselves as trusted leaders in the industry. In addition, reducing fraudulent and unregulated entities in the market will contribute to the healthy growth of the crypto market.
Companies that adapt to the new requirements will have a more stable market position, a higher reputation, and the opportunity to cooperate with institutional investors.
MiCA creates an environment in which crypto asset service providers can thrive on a solid and transparent foundation. It is therefore important that entrepreneurs do not see this framework as a hindrance, but as a support for their long-term vision and development.
