MoonPay joins the list of MiCA-approved crypto entities in Europe

MoonPay is celebrating the new year early as it has been approved by the Markets in Crypto-Assets (MiCA) in the Netherlands. The digital asset platform has become the first to be approved under Europe’s regulation.

According to the announcement, the company secured approval under the Markets in Crypto-Assets (MiCA) regulation, which the European Parliament passed last year.

🏆 achievement unlocked

✅ we've received approval under the Markets in Crypto-Assets (MiCA) regulation in The Netherlands

🌍 this enables MoonPay to innovate crypto payments across Europe!

🫡 2025 is going to be big pic.twitter.com/adLjntXhLo

— MoonPay 🟣 (@moonpay) December 30, 2024

The firm secured its license from the Netherlands’ Authority for the Financial Markets (AFM). This accomplishment allows the crypto services firm to provide services related to digital asset payments throughout Europe. 

MoonPay co-founder and CEO Ivan Soto-Wright said, “This approval is a testament to MoonPay’s proactive approach to regulation and our commitment to building a trusted bridge between the traditional financial world and the rapidly evolving crypto ecosystem.” 

Ivan Soto added,  “MiCA represents a pivotal moment for the European digital asset industry, and we’re proud to have worked collaboratively with the Dutch AFM to be among the first to embrace this new regulatory framework.”

MiCA requirements are causing big issues in Europe at the moment. However, with their license, there is so much that can be done. In this case, as of today, December 30, the framework is fully in place. 

MoonPay plans to use this legal clarity to grow its business in Europe. The company also wants to look into new ways to pay and use digital assets while making sure they stay in line with changing standards. 

What this means for MoonPay

MoonPay crypto platform’s achievement after the final filing of the MiCA regulation policy draft has caused a lot of market talk. At the same time, the huge success comes with speculation of a continued bull market in 2025. This has made Dutch investors even more excited.

In addition, MoonPay’s new service for Dutch users could help improve the market mood by giving a lot of new investors a chance to trade crypto. Bitcoin and other top crypto are moving very quickly compared to larger trends. This means that buyers should be willing to take small risks.

Notably, this win comes at a time when MoonPay is said to be in talks to buy crypto payment provider Helio Pay for around $150 million. If the deal goes through, it will be MoonPay’s biggest purchase since it started in 2018, which will make it even stronger in the market.

Are MiCA regulations against or for the crypto industry? 

Well, MiCA regulations are a bit tricky. Coinbase, a European exchange, eliminated Tether (USDT) and five additional stablecoins from its European platform this month. Coinbase stated that it may reinstate them if they satisfy the new criteria.

The exchange asserted that it would be providing issuers with an opportunity to reenter the market by adhering to the regulations. This is because MiCA offers a transition period of 6 to 18 months for stablecoins such as USDt to attain compliance. In response, Tether (USDt) saw its market value drop by $2 billion as exchanges adjusted to the changes. 

In addition, ByBit stopped certain perks for EU customers because of this regulation. The exchange told its traders, “As part of our ongoing compliance efforts following the upcoming implementation of MiCA on Dec 30, 2024, we would like to inform you about updates regarding your participation in events on the Bybit platform.”

Bybit stated that beginning Dec 18, 2024, users from the EEA will no longer be eligible to participate in any events on Bybit.

Starting Dec 18, 2024, EEA users (Germany, Italy, Spain, Poland etc.) will no longer be eligible for Bybit events. Make sure to complete any ongoing event tasks by Dec 23, 10AM UTC to secure rewards, with all distributions finalized by Dec 28, 2024‼️#Bybit #MiCA #Crypto pic.twitter.com/PG1CyKiWJW

— Tomek (@miedzybrodzki) December 18, 2024

However, Circle’s USD Coin (USDC) has successfully met MiCA’s requirements. This has secured the requisite e-money license and established USDC as a viable option in the EU market.

In the same light, Kraken, another significant crypto exchange in Europe, regards MiCA as a critical juncture in the region’s crypto market. To extend its presence, it has acquired the Dutch exchange BCM and is collaborating with local businesses in Spain to further its expansion.

Additionally, SIX, the Swiss stock exchange, is contemplating the establishment of a platform for crypto trading within the European Union. SIX endeavors to attract institutional investors by providing a secure and regulated trading environment that capitalizes on Switzerland’s sophisticated regulatory standards.

EU’s final MiCA policy is set

The final draft policy had new rules and methods for finding and reporting suspicious activities, even when they happened across borders. Crypto asset service providers (CASPs) are required to submit applications for licenses to conduct business within the European Union (EU) beginning in January 2025. 

A period of up to 18 months enables current providers to continue operations while transitioning to full compliance. This provision allows EU member states to allow existing crypto service providers to operate from December 30, 2024, to July 1, 2026, subject to the duration selected by each state. Nevertheless, this period is not mandatory for all jurisdictions, which means that certain EU member states may provide a lesser period.

In addition, the enforcement of the Transfer of funds regulation (TFR) will commence on December 30, 2024. To guarantee transparency and prevent money laundering, CASPs must establish systems for exchanging personal data between the sender and recipient of crypto asset transfers.

By July 2026, all CASPs must have achieved full compliance with MiCA regulations. This involves obtaining the necessary permits from their National Competent Authority, implementing strong security processes, and creating operating standards that prioritize consumer safety and transparency.

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