The European Securities and Markets Authority (ESMA) added 14 new crypto companies to its MiCA framework register, marking a slowdown in the licensing process. This update highlights traditional finan
In a recent development, the European Securities and Markets Authority (ESMA) expanded its MiCA (Markets in Crypto-Assets) framework by adding 14 new crypto companies to its register of licensed crypto-asset service providers (CASPs). This update brings the total number of CASPs under ESMA’s jurisdiction to 294, signaling a potential slowdown after an initial surge.
Among the newly added entities are Ripple Payments Europe, Bison Bank from Portugal, and Croatia's state-owned bank Hrvatska poštanska banka (HPB). Additionally, several traditional financial institutions made their presence known in this update, including German cooperative banks Volksbank Schwarzwald-Donau-Neckar and Raiffeisenbank Auerbach-Freihung. The inclusion of these entities underscores the ongoing trend of mainstream banking firms integrating into Europe’s regulated crypto market.
The MiCA framework aims to provide a comprehensive regulatory environment for crypto-assets, ensuring consumer protection and preventing financial crime. By adding more traditional players like banks, ESMA is likely reinforcing its commitment to fostering stability in the cryptocurrency sector while maintaining oversight. However, this update also included two entities on the non-compliant register: Reversal Investment Group and Kortex.
Notably, there were no changes reported for EMT (electronic money tokens) or ART (asset-referenced token) registers, both of which remain unchanged at 21 unique issuers and zero approved issuers respectively. This suggests that the focus remains on CASPs as the primary area of interest within MiCA’s regulatory framework.
The addition of these new providers is significant for traders and investors in Europe's crypto market, indicating a growing acceptance and integration of traditional financial services into this space. However, it also raises questions about how effectively regulators can manage the increasing complexity of cross-border crypto transactions and ensure compliance with both MiCA regulations and broader AML (Anti-Money Laundering) requirements.
For traders, these developments signal ongoing changes in regulatory landscapes that could impact market stability and liquidity. As more traditional banks enter the space, they may bring different risk management strategies and customer bases, potentially altering trading dynamics. Traders should stay informed about future updates to MiCA regulations and closely monitor how these new entrants interact with existing players.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.