EU MiCA law is set to take effect at the end of the month, but nearly 25% of member states have not yet completed their regulatory frameworks, and operators are calling for another six-month delay

The second phase of the EU's asset markets law, MiCA, will come into full force by the end of this month, although so far nearly a quarter of EU member states have yet to complete the adjustment of local laws to align with the MiCA regulatory framework. (Synopsis: The MiCA Effect: Tether Stops Issuing EURt Euro Stable Coin, Circle Founder Replenishes Guns: Everyone Uses EURC) (Background added: Cut off the road to wealth!) The MiCA law requires EU Stable Coinissuance merchants to reserve "30~60% cash" Circle complains a lot) The encryption asset market law "MiCA" proposed by the European Union since 2019 is implemented in two phases, the first of which has officially taken effect on June 30 this year, mainly that Stable Coinissuance providers need to obtain operating licenses; The second phase, which will come into effect at the end of this month, involves encryption asset service providers (CASPs), including exchanges, wallet providers and custodians, which MiCA requires to register and obtain operating licenses in at least one EU country. Nearly 1/4 EU member states still do not align MiCA regulatory framework However, according to CoinDesk, there are still three weeks before the second phase of MiCA comes into full effect, but nearly a quarter of the EU's 27 member states have yet to complete local legal adjustments to align with the MiCA regulatory framework, including Belgium, Italy, Poland, Portugal, Luxembourg and Romania. In this regard, Robert Kopitsch, co-founder of the Brussels-based European Block Chain Association, also said: The process of incorporating the MiCA Act into EU national law has not progressed as expected. In response to this situation, a number of cryptocurrency industry associations in the EU explained that the reason why the preparation for the implementation of MiCA cannot be completed is because some regulatory technical standards are not finalized until October, so that some national authorities (NCAs) only have two months to deal with these complex work, which is really difficult to complete before December. As a result, a number of industry groups also wrote to the European Securities and Markets Authority (ESMA) last month, stating that it was difficult to properly manage the application of the encryption asset service provider under such time pressure, and applied to ESMA to extend this period by 6 months to avoid sanctions against encryption companies that have not yet been authorized. Robert Kopitsch also explains: If some companies cannot obtain a license before the effective date, then they may have to suspend operations. This is very bad for these companies, cryptocurrency users in Europe, and the regulatory image in Europe. This request has been rejected by ESMA, but the final effective date of MiCA will be discussed again at the December 11 meeting. It takes time for multiple countries to respond to legislation In addition, for the full implementation of MiCA, many countries that are currently unprepared also said that it will take time to harmonize local laws with the MiCA bill, because it involves local politics and legislative processes. For example, the Polish Financial Supervision Authority (KNF) said: Poland's adjustments to the MiCA Act should be passed by the end of the year, but are currently under consideration by the European Affairs Commission, the Polish Financial Supervision Authority has no direct influence on this, we are not the only country that has not yet passed the bill, and the challenges faced by member states are similar. The Belgian financial supervisory authority, the FSMA, has also stated that the FSMA is also unable to provide any opinion as a political decision on the designation of a competent authority for MiCA has not yet been made. South Korea postpones virtual asset taxation to 2027 In addition, in Asia, according to South Korean media reports, the South Korean parliament also passed an amendment to the income tax law on December 10, officially abolishing the financial investment income tax (gold income tax) and postponing the virtual asset tax until 2027, that is, investing in Cryptocurrency in South Korea, still does not need to pay up to 20% capital gains tax in the next two years, which is good news for investors Read more: Oops! South Korea's cryptocurrency profits tax is affected by the president's impeachment, and may take effect on New Year's Day 2025 as originally planned Related reports EU regulation named coin: do not attempt to violate the Mica law, will stop the exchange from exploiting loopholes The EU officially signed MiCA as law! Effective after June 2024 Cryptocurrency regulation law adopted by the European Union What is MiCA? Stable Coin, exchange, coinissuance, non-fungible token: "The EU MiCA law came into effect at the end of the month, but nearly 25% of member states have not yet perfected the regulatory framework, and the industry shouts that it will be delayed for another six months" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Block Chain News Media".