Spain stated that it would not extend the EU encryption licence deadline

The Spanish securities regulator indicated that it would not extend the transition period of the EU Regulatory Framework for Encrypted Assets Markets (MiCA). Under the current arrangements, encryption companies must complete their registration in any EU member State by 1 July, otherwise they will not be able to continue to provide related services in the EU.

The unlicensed platform will be closed after 1 July

According to the MiCA rules, the platform can extend licences to other member States as long as they obtain licences in one EU member State. At the end of the transition period, European clients will not be able to continue their transactions with unauthorized encryption service providers.

Reuter quoted Carlos San Basilio, Chairman of the Spanish National Securities Market Commission, as saying that the deadline of 1 July was “no exception, no extension”.

Binance is still looking for a place of registration.

At present, Binance still does not have a MiCA license. The company had previously attempted to register in Greece, but the application had been withdrawn this week after the prospect of local approval was uncertain. Reports indicate that Binance is seeking to complete its registration in other EU member States.

If this is not approved by next Wednesday, Binance may need to temporarily contract or suspend its operations in Europe until the new registration arrangements are in place.

Regulators are communicating with unlicensed companies

According to Spanish regulators, more attention is now being paid to how markets can be smoothly switched to the new regulatory environment at the end of the transition period. Regulators are in contact with large encrypted companies that have not yet obtained a licence, requiring them to prepare their customer asset transfer programmes in advance and to safeguard investor interests.

The measures of implementation of financial regulation in EU member States are not uniform. Cyprus, Malta and others are relatively liberal, while France and Germany have always been more stringent. This also makes it difficult for some of the platforms to obtain approvals when selecting their place of registration.