Key facts
- The EU's Markets in Crypto-Assets (MiCA) regulation has entered its enforcement phase.
- Unauthorized crypto firms must cease operations or face penalties.
- The European Securities and Markets Authority (ESMA) updated its MiCA register.
- 37 new crypto firms were added to the ESMA register.
- Standard Chartered and FalconX are among the newly added firms.
- Cyprus led the latest wave of MiCA authorizations.
- Revolut will delist the Tether USDT stablecoin.
- Revolut users have until August 31, 2026, to sell or transfer USDT.
- Remaining USDT on Revolut will be converted to the account's base currency after the deadline.
- Experts anticipate varying national regulatory approaches under MiCA.
The European Union's Markets in Crypto-Assets (MiCA) regulation has officially entered its enforcement phase, marking the conclusion of its transitional period. This shift requires crypto firms operating within the EU to obtain authorization or cease their activities to avoid significant penalties. The European Securities and Markets Authority (ESMA) has updated its official register of crypto-asset service providers under MiCA, incorporating 37 new entities following the end of the grace period. Among the notable firms added to the register are Standard Chartered and FalconX. Cyprus has emerged as the leading jurisdiction in authorizing these new entities, reflecting a concentrated effort to comply with the new framework.
Despite the regulatory progress, experts anticipate that the enforcement of MiCA may not be uniform across all member states. This potential for varying national regulatory approaches could inadvertently create opportunities for regulatory arbitrage, where firms might exploit differences in enforcement to their advantage. The implications of these differing approaches are still unfolding as national authorities implement the EU-wide rules.
In a direct consequence of the new regulatory environment, the European fintech company Revolut has announced its decision to delist the Tether USDT stablecoin. This move is a direct response to the new EU MiCA regulations. Revolut has set a deadline of August 31, 2026, for its users to either sell their USDT holdings or transfer them out of their accounts. Any USDT remaining in user accounts after this date will be automatically converted into the account's base currency, ensuring compliance with the forthcoming regulatory requirements.