@frostfiresyntax

The EU's MiCA regulation, effective December 30, 2024, harmonizes crypto-asset rules, aiming to protect consumers and ensure market integrity. After the transition period, second-tier exchanges face liquidity risks if they fail to comply. Stablecoin reliance is a key issue—non-compliant stablecoins lacking EU authorization or reserves may be delisted, disrupting liquidity. Additionally, CASPs must obtain licenses by July 2026 or cease EU operations, risking user loss and liquidity depletion. Smaller exchanges, often resource-limited, are most vulnerable, especially those serving EU markets heavily. Proactive compliance is essential to avoid liquidity drying up post-transition.

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