All the registered VASPs must comply with new requirements, which will be the same regardless of their country of incorporation; otherwise, they will be required to cease their business. Recent: 10 stablecoin issuers approved under EU’s MiCA — Tether is left outMost of them will not be able to comply, based on previous experience, such as when 1,900 companies lost their VASP registrations in Estonia.
Not all will be able to do so. The MiCA regulation is, in essence, a good legal framework for the crypto industry, but it also has some disadvantages, especially for crypto startups and small businesses. Looking at the case of Estonia and its implementation of crypto licenses in 2017, it is possible to predict that around 75% of VASPs will need to cease their operations in the EU. What happened in Estonia with crypto licenses? In 2017, Estonia was one of the first EU member states to introduce a crypto licensing process.
Many currently registered VASPs are startups or small companies whose revenue will not be able to cover all the costs needed to build the processes mentioned above and satisfy the share capital requirements. Where does that leave the small businesses and the startups?
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Author / Journalist: Cointelegraph by Slava Demchuk
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