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- Spain’s securities regulator said there will be no extension of the July 1 EU MiCA licensing deadline for cryptocurrency companies.
- Binance, which remains unlicensed after its app was withdrawn in Greece, may be forced to temporarily halt its EU operations.
- Regulators work with unlicensed companies to ensure that clients’ assets can be transferred if necessary.
Spain’s top securities regulator said Friday that the country will not extend a rapidly approaching deadline to register cryptocurrency companies under new regulations — even as Binance struggles to do so.
Under the newly implemented European Union Mika Within the framework of cryptocurrencies, companies have until July 1 to register in one of the member states and continue operating. If they fail to register by next week, they will be obligated to stop doing business. European customers will not be able to complete transactions with unauthorized cryptocurrency service providers after next week.
Binance, the world’s largest cryptocurrency exchange, has sought registration under MiCA in Greece. But after a report that the country was unlikely to grant approval, Binance said this week that it had done so Withdrew its application from Greece. It is now seeking to register in another EU member state, but will likely have to scale back its European operations, at least temporarily, when time runs out next Wednesday.
Carlos San Basilio, head of Spain’s National Securities Market Commission, said on Friday that “there will be no exceptions or extensions” to the July 1 deadline, according to a report from Reuters.
San Basilio expressed concern about major cryptocurrency exchanges like Binance, which are set to be shut down within days due to MiCA non-compliance.
He said, “What worries us… is how this period will end – the end of the transitional period – and how we will adapt to the new environment.”
The regulator added that he and others are in contact with major cryptocurrency companies that have not yet obtained licenses, to ensure they have plans to transfer customer assets to other service providers and guarantee investors’ rights.
Once a cryptocurrency company is registered in an EU country, it is able to “passport” its license to other jurisdictions. EU member states boast a wide range of approaches to financial regulation, ranging from more stringent jurisdictions such as Cyprus and Malta to stringent regimes such as France and Germany.
While each EU country may process applications in its own way, all will apply the same broader set of rules regarding cryptocurrencies.
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