Markets
MiCA Deadline in 3 Days, Only 9% of Companies Fully Prepared: Report
A recent report highlights the impending impact of the European Union’s Crypto Markets Regulation (MiCA) on cryptocurrency trading oversight. Commissioned by Eventus, the report, “The Impact of MiCA on Crypto Market Surveillance: Insights and Challenges,” is based on interviews with senior executives at 68 cryptocurrency trading firms conducted by Acuiti.
MiCA, a pioneering regulatory framework within a major financial jurisdiction, is spurring a wave of efforts to establish comprehensive market surveillance systems across the industry. The regulation, similar to Market Abuse Regulation (MAR), imposes stringent requirements on market participants, ushering in new operating standards.
Ross Lancaster Head of Research at Acuiti, Source: LinkedIn
According to the results, only 9% of the interviewed companies fully comply with the MiCA requirements, while a significant 25% have yet to start preparations. HOW Not The deadline for implementation is approaching the end of the year, companies are encouraged to promptly check their regulatory scope and initiate compliance measures.
Despite challenges, such as identifying suitable third-party software vendors and managing compliance costs, the report finds increasing sophistication in market surveillance practices. Even among companies initially excluded from MiCA’s scope, 57% already employ robust surveillance systems.
“For firms not already operating under MIFID II, MiCA will represent a significant operational step forward in becoming compliant, and it is no surprise that we found that firms were looking to third-party providers to assist them with their preparations,” said Ross Lancaster, Head of Research at Acuiti.
“There is a relative lack of awareness in some areas of the market about who is in scope, which will need to be addressed if companies are to have time to prepare for compliance.”
Outsourcing Trends and Compliance Costs
Travis Schwab, CEO of Eventus, Source: LinkedIn
The study highlights the consultations on the final technical standards of MiCA, revealing that 25% of the companies involved have yet to start preparations, while others are at various stages of preparation. In particular, 64% of the companies intend to outsource the development of the system, anticipating challenges in supplier selection and resource allocation.
Key concerns among companies predicting the impact of MiCA include
conformity costs and ensure qualified personnel, reflecting the sector’s broader adjustments to regulatory mandates. As regulations change, industry leaders must adapt to the new rules under MiCA.
Eventus CEO Travis Schwab said: “We have invested significantly over the years to ensure we can meet the needs of this industry, including the ability to handle real-time alert generation covering billions of messages per day, 24/7. Regulation in the EU is just the beginning of new regulatory guidance that we expect to see in jurisdictions around the world in the coming years.”
A recent report highlights the impending impact of the European Union’s Cryptocurrency Markets Regulation (MiCA) on the oversight of cryptocurrency trading. Commissioned by Eventus, the report, “The Impact of MiCA on Crypto Market Surveillance: Insights and Challenges,” draws from interviews with senior executives from 68 companies involved in cryptocurrency trading, conducted by Acuiti.
MiCA, a pioneering regulatory framework within a major financial jurisdiction, is spurring an intensification of efforts to establish comprehensive market surveillance systems across the industry. The regulation, similar to the EU Market Abuse Regulation (MAR), imposes rigorous requirements on market participants, ushering in new operational standards.
Ross Lancaster Head of Research at Acuiti, Source: LinkedIn
According to the findings, only 9% of companies surveyed fully comply with MiCA requirements, while a significant 25% have yet to begin preparations. AS Not The deadline for implementation is approaching the end of the year, companies are encouraged to promptly check their regulatory scope and initiate compliance measures.
Despite challenges, such as identifying suitable third-party software vendors and managing compliance costs, the report finds increasing sophistication in market surveillance practices. Even among companies initially excluded from MiCA’s scope, 57% already employ robust surveillance systems.
“For companies not yet operating under MIFID II, MiCA will be a significant operational aid in complying and it is no surprise that we found that companies were turning to third-party providers for assistance with their preparations,” said Ross Lancaster, head of research at Acuiti.
“There is a relative lack of awareness in some areas of the market about who is in scope, which will need to be addressed if companies are to have time to prepare for compliance.”
Outsourcing Trends and Compliance Costs
Travis Schwab, CEO of Eventus, Source: LinkedIn
The study highlights consultations on the final technical standards of MiCA, revealing that 25% of affected companies have yet to start preparations, while others are at various stages of preparation. Notably, 64% of companies plan to outsource system development, anticipating challenges in vendor selection and resource allocation.
The main concerns of companies foreseeing the impact of MiCA include
compliance costs and ensure qualified personnel, reflecting the broader industry adjustments to regulatory mandates. As regulations change, industry leaders must adapt to the new rules mandated by MiCA.
Eventus CEO Travis Schwab said: “We have invested significantly over the years to ensure we can meet the needs of this industry, including the ability to handle real-time alert generation covering billions of messages per day, 24/7. Regulation in the EU is just the beginning of new regulatory guidance that we expect to see in jurisdictions around the world in the coming years.”