The European Union's cryptocurrency regulation, known as the Markets in Crypto Assets (MiCA), is set to go into effect at the end of the year. However, almost a quarter of EU member countries are not ready to align their local laws with MiCA, including Belgium, Italy, Poland, Portugal, Luxembourg, and Romania. Trade associations in the crypto industry believe that the European Commission and European Securities and Markets Authority are not taking this lack of readiness seriously enough. The implementation of MiCA is divided into two phases, with the second phase, concerning crypto asset service providers, having a December deadline. Some national regulators are struggling with the short timeline and paperwork involved. Trade groups have requested a six-month "no-action" period to allow firms additional time to receive authorization. ESMA has denied the request so far, but the matter will be considered at a meeting in December. Firms that fail to receive authorization may be forced to halt their crypto operations, which could be detrimental to business and upset users. Some countries mentioned as struggling to meet the deadline include Ireland, Portugal, Poland, and Spain. Even countries with relatively advanced crypto regulations, such as Germany and Malta, are facing challenges in aligning their existing frameworks with MiCA. Legislative processes and coordination with governments have been identified as bottlenecks in the implementation process.



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