Lithuanian ministers do not wish a crypto catastrophe to take effect while they wait for Brussels lawmakers to sharpen the final details regarding the MiCA legislation.
Many nations are currently waiting for a policy to regulate digital assets correctly. Some have already achieved it; others are working hard to put it into circulation. Lithuania is the latest member of the European Union that does not desire to wait for a continental decision but instead intends to rush into funding its crypto licensing system.
Local ministers explained to CoinDesk that European laws could arrive too late to save the reputation of this damaged sector.
Although Lithuania is one of the countries waiting for the policy from Brussels, the Regulation of Markets in Cryptoassets (MiCA), which will potentially not get enacted until 2025, Lithuania has decided to go ahead and start modeling its crypto law.
This information went to CoinDesk from the country’s deputy finance minister. But strategies to bring the law to get discussed in the country’s parliament are making some Lithuania-based companies worry about their future.
MiCA and How it Faces Delay
The European Union reached new levels of negotiation regarding MiCA. The single authorization regime for the 27-nation bloc has faced years of the creation process. It could bring a fundamental change to the sector by allowing entities to tap into a market of hundreds of millions.
The European Commission, the governing entity of the EU, first sought advice on how existing procedures linked to regulation might apply to digital assets in March 2018. Since then, the digital market has reached an exponential evolution.
The MiCA decision process still moves too slowly. However, the EU has already made vital decisions, such as in March this year, which gave the green light to a controversial policy that undermines the anonymity of digital assets, which could limit the use of self-custody wallets throughout the bloc.
Coindesk highlighted that lawmakers need to resolve its final guidance in the policy, such as how to treat Libra-like stable coins, non-fungible tokens, and decentralized finance. There will be a period mainly led by transitions of up to two years before MiCA becomes an active policy.
MiCA a Huge Law
the Lithuanian Ministry of Finance told CoinDesk in an interview that MiCA is something like the most beautiful thing to come, it is a good decision, and they are working hard to back it up, but it comes in 2025, the end of 2024, so there is still plenty of time.
Liutvinskas expressed concern about whether she acts quickly or dishonest companies could bring down the industry’s reputation. For both the administration and those who play a crucial role in the market, the worst-case scenario would be to face a bad situation, like scandals linked to money laundering or sanctions evasion, because reputation means everything to a business.
Like regulators in Estonia, Liutvinskas highlighted that she welcomes consolidated entities, not empty shells that register in the country but carry out their activities elsewhere.
By: Jenson Nuñez
