MiCA's Major Implications for Bitcoin & Crypto!

**Ran** (0:00)
I actually tweeted a few days ago, and I said that they will be selling pressure all week because MiCA is coming in, or the 1 July deadline for MiCA actually starts tomorrow. And that really does affect the European landscape quite a bit. And because Binance doesn't have a MiCA license, or yet, I did foresee that a lot of Binance users were gonna sell a whole lot of their positions, which is subsequently what happened. But it's not only about Binance, it's about a lot of stuff that's actually happening tomorrow in the 1 July MiCA deadline. A lot of people think that MiCA is coming in to effect tomorrow, and that's actually not the truth. MiCA has actually been in effect since 2024, but the deadline to comply with MiCA actually happens tomorrow, in less than 24 hours in Europe. And it's gonna have a lot of implications for crypto. It's gonna have a lot of implications for exchanges, how exchanges operates. It may drive people on chain. It may have implications on stable coins and how you pay with your stable coins. So there's lots of implications. And I thought, just because it's one day before MiCA, I think we should maybe just dig in to see what actually changes tomorrow. So today, it's all about MiCA. It's gonna be a big show. There's lots to dig into. There's lots of opportunities as well. Some of them which we've already caught, and some of them which you can still catch over the next 12 months. So let's get the show on the road, guys. One day before MiCA.
Here's that selling I warned you about, 58,413. I do believe that a lot of it is actually because of MiCA and because there's one more day before the MiCA compliance deadline actually comes in. And you can kind of see it in the bubbles. It's Bitcoin that's red, it's most of the bubbles that are red. You can see it here, there are one or two green ones, Casper's green, a couple of others are green. We'll talk about the green ones, we'll talk about the red ones. I think the most important thing is for us to just understand that MiCA is a set of regulations around crypto that basically unify the EU. And these regulations have actually been in place since 2024 But the deadline for compliance for certain intermediaries or for certain affected parties by this is the 1st of July. So basically, I had a little bit of a discussion with ChatGPT, who my wife thinks I'm having an affair with, by the way. And as ChatGPT says, the most important thing to understand about MiCA is that the new law started, doesn't start on the 1st of July, most of it's been in since late 2024 What does it actually do? It creates one rule across all 27 EU countries, designed to protect consumers. I'm going to challenge that. It's designed to regulate exchanges, brokers and custodians. It's designed to regulate stable coin issuers. There's an opportunity here when it comes to stable coin issuers. It is designed to reduce fraud and improve transparency, and I think it does a great job with that. And it allows licensed firms to operate throughout the EU with a single license. Sorry, I'm a bit sick today, I've got a bit of bronchitis, but let's carry on.
All right. So what actually changes on the 1st of July? Any entity that is not MiCA licensed as of tomorrow may not operate legally in the EU, which is very different from what happened up until now. They could be unlicensed and they could operate in the EU, providing they follow the MiCA regulations. But now they have to actually comply and they have to have a MiCA license. Who gets affected? Crypto exchanges, brokers, custodians, wallet providers, OTCs. Anyone that basically touches crypto, even stable coin issuers, the crypto itself is not regulated. The Bitcoin itself is not regulated. Ethereum is not regulated. So let's talk about the exchange landscape and who has a license and who doesn't have a license. So if you look at the crypto exchanges that actually do have licenses, and this is quite important, so you can kind of see it up here. It basically says Bybit has a license. They are licensed in Austria. OKX is licensed. They are licensed in Malta. Coinbase is licensed out of Luxembourg. Gate is licensed out of Malta. KuCoin also licensed out of Austria. And the one notable exclusion here is Binance, right? So, I mean, I was messing around with Binance earlier. So I did write a tweet about this a few days ago, and I said, you know, Binance is not part of this. And as I said, the reason should actually infuriate you because what the reason is, I think, is that the European Central Bank wants to launch a CBDC. And the way to weaken crypto and to destroy crypto liquidity in Europe is to effectively interfere in the process. And I think that that's exactly what happened. I think that there was interference in the process by the ECB. Therefore, Binance, which is the biggest liquidity provider in Europe, didn't have a license. They were indicated that they were going to get a license from Greece. And in return, they would give Greece a whole lot of jobs. They'd give Greece like $250 million a year in tax income. And now all of that is basically fallen away and Binance has to go and reapply somewhere else. So just a quick note around the Binance thing. We'll talk about all the other stuff later.