EU crypto rulebook faces enforcement challenge as MiCA transition ends
Update (July 4, 6:30 AM UTC): This article has been updated to correct information regarding MiCA compliance costs. The European Unions cryptocurrency industry has entered a new enforcement phase as the transition period under the Markets in Crypto-Assets (MiCA) regulation came to an end. The end of the transition means crypto companies without MiCA authorization can no longer legally serve EU clients and are expected to wind down operations or face multimillion-euro fines and other enforcement action. Industry executives and lawyers told Cointelegraph the next challenge is ensuring national regulators apply the blocs single rulebook consistently, even as supervisory approaches are expected to vary across member states. The transition marks MiCAs first major enforcement test as regulators begin applying the EUs crypto rulebook. MiCA compliance costs versus fines Although complying with MiCA can cost hundreds of thousands euros, experts say operating without authorization carries far greater financial and regulatory risks. Nicola Massella, partner at Storm Partners, estimated MiCA implementation costs for many Cryptocurrency companies at 350,000 euros ($400,000) to 600,000 euros ($690,000). Brickken CEO Edwin Mata said the real cost comes from building continuous compliance systems, including anti-money laundering monitoring, Travel Rule infrastructure and custody segregation. On penalties, Eckehard Stolz, managing director of Amina EU, said MiCA penalties