EU Moves to Close MiCA Loophole Allowing Single-License Access Across 27 Countries
(4 hours ago) · 1 source · Summarized by CryptoBipto
The European Union is reportedly targeting a provision in the Markets in Crypto-Assets (MiCA) regulation that allows crypto exchanges to operate across all 27 EU member states using a single license obtained in one country. Regulators are concerned that this passporting mechanism may lead to regulatory arbitrage, where firms choose the most lenient jurisdiction for licensing. Efforts are underway to tighten oversight and ensure consistent standards across the bloc.
WHY IT MATTERS
Think of MiCA like a driver's license that works across all EU countries. If you get your license in one country, you can drive everywhere in the EU. The concern here is that some crypto companies might be picking the country with the easiest driving test, then operating across the entire bloc. For people new to crypto, this matters because the rules that protect you as a customer could vary depending on where a company got its license, even if you are using the service from a different country. The EU is now looking at ways to make sure the standards are equally strong no matter where a company is based.
Read the full analysis with a CryptoBipto membership
Members can read the full analysis of every story, not just the headline.
Get startedSOURCES
- cryptoslate.com
RELATED
Learn the concepts behind this
Clear explanations of the subjects this article touches, with every term defined.