In a move signaling a proactive stance towards the fast-evolving digital currency realm, Spain has decided to fast-track the adoption of the world’s premier crypto-asset market regulation, MiCA (Markets in Crypto-assets Regulation).
A Proactive Leap into the Future
In a recent development, Spain has chosen to lead the global charge in digital currency regulations by implementing the MiCA regulation six months ahead of schedule. Originally penned for a July 2026 rollout across European member states, Spain is set to welcome this framework by December 2025.
Stakeholder Engagements
Nadia Calviño, Spain’s First Vice-President and interim Minister for the Economy and Digital Transformation, recently engaged in a pivotal discussion with Verena Ross, the President of the European Securities and Markets Authority (ESMA). Their discourse revolved around the broader financial ecosystem and the nuances of crypto-asset market regulation.
Rollout Dynamics
Following the public disclosure of this regulation, each European member state will be tasked with deciding the timeline for its application. Default provisions dictate an implementation from July 2026 for crypto service providers, coupled with a gradual transition spread across 36 months.
However, Spain’s swift decision-making promises a mere 18-month transition, post the regulation’s June reveal. This also entails ESMA and the European Banking Authority (EBA) laying down technical standards for MiCA’s practical application. This is followed by an additional year earmarked for the National Securities Market Commission (CNMV) to initiate approvals for aspiring crypto service enterprises. Spain’s approach trims the entire process by half a year.
This advancement, which resonates with ESMA’s recommendation, facilitates the early initiation of MiCA in Spain. This proactive move promises to bring clarity and augmented protection for Spanish digital asset investors.
Unraveling MiCA’s Essence
MiCA stands as the pioneering global framework addressing the crypto-asset market comprehensively. It delineates responsibilities for crypto-asset service providers as well as issuers.
However, certain crypto-assets currently governed by existing legislation, unique NFTs, and those that are decentralized like Bitcoin, remain outside MiCA’s purview. Although, their trade on a platform does fall under MiCA. The regulation also notably sidesteps topics concerning decentralized finance (DeFi).
Crypto-asset issuers are mandated to be licensed entities, present a comprehensive white paper, and adhere to stringent prudential, governance, and investor protection protocols. A pivotal addition is the inception of rules aimed at curtailing the liquidity risks linked with crypto-assets.
For those issuing crypto-assets with inherent price stabilization mechanisms, the MiCA directives will come into play from 30 June 2024.
Service providers in the crypto space, spanning custody, exchange platforms, and consultation, will observe regulations mirroring those for MiFID investment service enterprises. These entities will seek approval from the CNMV for operation.
Importantly, Spain has appointed CNMV alongside the Bank of Spain as the primary authorities to usher in MiCA, as documented in the Securities Markets and Investment Services Law of March 2023.
