- Crypto firms registered in Spain need to adopt the MiCA Act by December 2025.
- MiCA would introduce more stringent consumer protection measures for crypto firms.
- Spain shortened the duration to create a predictable and stable regulatory and supervisory framework.
Crypto firms registered in Spain would be required to apply the EU crypto law, Markets in Crypto Assets (MiCA) Act, by December 2025, according to reports. That would mean that the country would bring forward the law’s implementation by six months and would likely affect already registered crypto companies like Binance, Kraken, and Coinbase.
Per multiple reports, the rule would introduce more stringent consumer protection measures for crypto firms. The original proposal requires new companies to implement the new law from the end of 2024 while existing crypto firms would have an additional 18-month period before they are mandated to adopt MiCA.
Spain has reduced the extension period for existing companies on the notion that customers of such firms would be in a disadvantaged position with the existing conditions. Hence, the government wants to carry out the implementation in six months shorter than MiCA requires.
The Spanish Ministry of Economic Affairs and Digital Transformation made a press release on October 26 and noted that it would shorten the transitional period of application. According to the publication, the aim of shortening the duration is to create a predictable and stable regulatory and supervisory framework.
According to the Spanish regulator, the accelerated MiCA implementation would enhance legal assurance and increase security for Spanish investors involved in digital assets. It also showcases the country’s dedication to achieving a safe and well-regulated crypto ecosystem.
This action by the Spanish government followed advice from the European Securities and Markets Authority, encouraging participating countries to shorten the transition period. According to the EU watchdog, shortening the transition period would avoid a consumer-protection loophole for a potentially large number of providers.
MiCA would require crypto assets service providers to adhere to rules similar to those governing traditional financial service providers. It is reportedly aimed at mitigating liquidity risks associated with crypto assets.
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