The first regulation on Cryptocurrencies on the EU scale aimed to impose a certain harmony, but the disparities in the implementation of the member countries allowed companies to exploit a system defect.
Launched in December, the Crypto-Asset markets (Mica) insist that service providers obtain a license to operate legally in the European Union.
It is published once specific criteria on money laundering, prevention of financing of terrorist groups, IT security and financial solidity have been implemented.
Such a framework aims to protect investors and provide credibility to a sector deemed poorly regulated.
Once obtained, a license grants access to the entire EU market, which encourages certain companies to request authorization in the most “accommodating” Member State.
Experts in crypto, speaking to AFP, do not question the integrity of the regulatory authorities in, for example, in Germany and the Netherlands – two EU members who so far explain the majority of the 30 Licenses of Mica issued.
However, other blocks, including Malta, are in reticle, however, according to these same experts, who preferred to remain anonymous.
They indicate, for example, the Mediterranean island has hastily delivering licenses before the formal implementation of collective standards.
– Quick approvals –
“From time to time, we see arriving on our market, via the passport (Mica), products approved by some of our colleagues with, say, a fairly rapid signature,” deplored the president of the Financial Markets Authority in France, Marie-Anne Barbat-Layani, while she was addressing the country in March.
Barbat-Layani noted that the EU ESMA market regulator had launched a “peer review” of an unnamed regulator which is potentially too lax.
When contacted by AFP, the guard dog refused to comment. The Maltese regulator, MFSA, has neither confirmed nor denied that he was involved.
An official working under her, Stéphane Pontoizeau, added: “There is always the risk that someone is trying to find the least demanding entry point in Europe.”
Crypto Platform Okx, who had planned to hire around 100 employees in France, making the country its “anchor” in Europe, finally opted for Malta.
Peer Gemini followed the same strategy, having targeted Ireland before changing his mind, citing “the proactive commitment” of the Maltese authorities.
“Malta began to welcome applications several months earlier than other regulators, which meant that we could start the application process earlier, build the teams and infrastructures necessary to operate under Mica,” noted Gemini chief of Gemini, Mark Jennings.
Other countries have been slow to grant approvals, France having just issued its first Mica license – to the French Society of Fintech Deblock – in the middle of accusations that its process is long and complex.
France, however, considers it as companies granted for more time to prepare their request, the country implementing a transition period until June 2026.
Pontoizeau insisted that the French financial regulator was “determined not to add national requirements to European rules”.
According to lawyer Anne Marechal, former legal director of the regulator, there have been “approvals at reduced prices”.
She told AFP that “believing that we can save a few weeks and a little money” endangered the credibility of companies with investors.
– Economic sovereignty –
Obtaining the necessary certification may also require considerable expenses, whether for a mica or national license.
Tangi Le Calvez, founder of the Crypto Going investment company, has invested around a million euros to obtain a French license, which inspired Mica.
He thinks that many players will not be able to perform all the necessary steps.
Already in 2017, the EU Estonia member introduced his own compulsory licenses for the crypto sector, which led to 75% of the participants in the industry who stop operations there, according to the Cointelegraph publication.
Although it remains to be seen if a similar result will occur in the wake of Mica, Claire Balva, director of strategy at Deblock, stressed the risk that European cryptography companies will be replaced by rivals of places by more flexible rules, such as the United States and Dubai.
Given their financial resources, these non-European companies would have no difficulty in respecting the EU rules, she insisted.
If “an important part of cryptocurrencies held by Europeans” was hosted “on American infrastructure”, this also raises “questions of economic sovereignty,” added Balva.
Lul-BCP / JKB / AJB / CW
