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- ESMA says MiCA will take time to be fully implemented.
- Crypto investors, therefore, remain at risk in the meantime.
- Bitcoin is trading well under the $29,000 level on Tuesday.
All eyes are on Bitcoin after ESMA – the European Securities & Markets Authority cautioned crypto investors on Tuesday.
MiCA will take time to be implemented
Earlier this year, the European Union approved an extensive set of regulations for crypto assets that it’s calling Markets in Crypto-Assets Regulation.
On Tuesday, however, ESMA warned crypto investors that it will likely take until December of 2024 for MiCA to be fully implemented.
It is also worth mentioning here that a bunch of crypto firms will be able to remain in business without an EU license in states that grant them a transitional period of 18 months – which means full protections in these EU states will not be available until July 2026.
At writing, Bitcoin is trading well under the $29,000 level.
ESMA says no cryptoassets is ‘safe’
ESMA did, however, confirm on Tuesday that it’s working closely with national regulators and is motivating them to apply Markets in Crypto-Assets Regulations rules as soon as possible.
Even with full protection, though, it recommended investors to be cautious when investing in cryptocurrencies. The EU watchdog’s statement reads:
Even with implementation of MiCA, retail investors must be aware that there will be no such thing as a safe cryptoassets.
Currently, crypto assets are unregulated under the rules laid out by the European Securities and Markets Authority. Regulating the crypto market has become a priority for ESMA ever since the collapse of FTX and Terra Luna.
