How MiCA Will Change the European Crypto Market in 2025
Date: 2024-12-30 Author: Gabriel Deangelo Categories: IN WORLD
Since the beginning of the new year, the long-awaited Markets in Cryptocurrency Regulation (MiCA) will come into force across the European Union. It has already affected stablecoins: Tether was forced to leave the market due to non-compliance with the requirements. Experts expect that MiCA will have a significant impact on the development of the industry and its participants.
Marina Markezic, co-founder of the European Crypto Initiative, believes that MiCA will push EU countries to create favorable conditions for business and attract investment. Germany and France already stand out as potential leaders, but countries such as Estonia, Malta and Portugal can use the flexibility of their regulatory systems and attractive taxation to attract global players.
MiCA proposes a uniform regulatory approach and a “license passporting” mechanism, allowing companies approved in one country to operate across the EU. This will create a more mature and regulated market, giving confidence to both institutional and private investors.
Euro leaders such as OKX Europe CEO Erald Goos are confident that 2025 will be a turning point for the crypto industry in Europe. According to him, the new rules will not only increase trust in digital assets, but also provide clearer and safer options for investors.
Despite the positive sentiment, experts note potential challenges. Markezic points to possible differences in interpretation of the rules between EU countries. There is also an open question about which projects fall under MiCA and how to determine what can be considered “fully decentralized”.
NFT regulation is also controversial, making it difficult to determine whether tokens should be issued with pre-written documentation. Small projects may face difficulties in complying with the new standards, which will reduce the level of innovation.
In addition, many tokens are likely to be delisted from centralized exchanges, which will affect market liquidity. A reduction in the choice of stablecoins may make it more difficult for investors to access certain assets.
The defi sector remains largely outside the direct regulation of MiCA, but questions about its interaction with national laws may create additional friction.
The idea of a Bitcoin strategic reserve, proposed by European politician Sarah Knafo, is generating interest and controversy. Markezich believes that this is an innovative but risky initiative for the conservative EU financial system. Such a move requires deep discussion to assess the strategic benefits and risks for the European Union.
Although MiCA has attracted the attention of businesses, the possible return of Donald Trump to the White House and his promises to create favorable conditions for the crypto industry in the United States may weaken the EU's competitive position.
