List Published During the MiCA Approval Process
This timing of the announcement is not accidental. The MiCA became fully applicable since the end of 2024 and introduced a licensing framework for companies providing crypto-asset services in the European Union. After such a date, any company wanting to appear in the market as a CASP must obtain permission beforehand. As for the existing companies, they had time to transition and follow all the laws; in the case of Belgium, this transition was over on July 1.
Now that the above-mentioned period is over, only licensed CASPs can offer regulated crypto services. In turn, there are many activities within such administration, e.g. the custody of crypto-assets, operating trading platforms, providing an exchange between crypto and fiat or regulated crypto-assets, etc.
What the Consumer Should Do
In order to open an account or make transfers of money, the FSMA recommends that anyone who wants to use a crypto platform first check if the platform is listed on the official list of authorized CASPs, compiled by the European Securities and Markets Authority under the MiCA regime. Authorization is granted by the competent regulator in the provider’s home EU member state, so a listing in that register is the key test of legitimacy.
Other warnings from the FSMA about crypto assets include the risks posed by the volatility of prices, the risk of a lack of liquidity, which may prevent selling at a chosen price, and no system for compensation of losses. The FSMA also warns consumers about the risks posed by the promotional information on social media. It also cautioned that scam victims are increasingly being targeted a second time by so-called “recovery rooms”, fraudulent offers that promise to help retrieve lost funds.
A Wider EU Squeeze on Unlicensed Operators
This is an example of a trend that has been developing across the EU due to the coming into force of MiCA, which requires that both regulators and companies involved with cryptocurrencies take action. A few days prior to the cut-off date, exchange platform Binance pulled its application for the MiCA license from Greece, stating that it intends to seek authorization in another EU country.
All considered, it appears that the process of enforcement after MiCA has finally started: national regulators have begun identifying unauthorized operators, while cryptocurrency companies have started trying to secure licenses in the desired jurisdictions. Moreover, regulators repeat the same fundamental principle to consumers: verify authorization before you invest, and don’t assume a platform is legitimate just because it’s easy to find online.
