The past few years have marked a significant shift in how the European Union approaches cryptocurrency regulation. As the founder of multiple startups, including Fe/male Switch, and a staunch advocate for keeping up with evolving digital landscapes, I find the progression of the EU’s regulatory framework not just necessary but overdue. Here is a deep dive into where we stand with the EU’s Markets in Crypto-Assets Regulation (MiCA) and what’s next for businesses, especially for female entrepreneurs like myself.
Setting the Stage: What MiCA Brings to the Table
MiCA is the first comprehensive crypto regulatory framework in the world and took years of negotiation to finalize. It became a legal standard in the EU in June 2023, though its practical implementation has rolled out in two waves. The rules surrounding stablecoins, for example, were enforced in July 2024, while other aspects of the legislation will become fully operational by January 2025, demanding compliance from all crypto-asset service providers.
For entrepreneurs and startup founders, including those in crypto or tech-adjacent fields, this translates to a landscape with clearer guidelines on what is and isn’t allowed. Gone are the days of navigating fragmented national rules. Startups can now work within a unified framework, simplifying licensing procedures but also significantly increasing compliance pressure.
What Does It Actually Mean for Business Owners?
Let’s break this down in practical terms:
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Greater Consumer Trust: MiCA enforces transparency regulations that require crypto projects to outline everything clearly for consumers. Whitepapers, audits, proof of reserves for stablecoins, it’s all mandated now. As a business owner, this means more trust, but also higher upfront costs for compliance.
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License Requirements by 2025: If you operate as a crypto-asset service provider (CASP), you’ll need to obtain a proper license in the EU by January 2025. While applications opened in late 2024, the deadlines for compliance are stringent, and failing to meet them could jeopardize years of work. An 18-month transition period allows current businesses to meet the new standards, but don’t wait until the eleventh hour to start adapting.
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Impact on Newer Trends: DeFi, NFTs, and staking aren’t covered under the current framework. As a result, innovators in these areas might find themselves working in a regulatory gray zone for a while. To me, this presents both an opportunity and a challenge. On one hand, it allows you to take calculated risks in these nascent spaces. On the other hand, ambiguity in compliance makes accessing funding and customers trickier.
Recognizing the Opportunities for Female Founders in Crypto and Blockchain
For female founders, the rollout of MiCA could reshape how our businesses fit into this emerging market. A clearer regulatory scaffold can open doors to new, diverse funding opportunities, potentially making crypto and blockchain more accessible industries. Female entrepreneurs in tech already face challenges in getting venture funding, clearer rules could lessen the perception of crypto as risky or untamed.
For example, I’ve seen firsthand at my gaming-based startup Fe/male Switch how curiosity about blockchain is often tempered by the fear of legal and compliance risks. With MiCA paving the way, the barrier to entry could lower, leading to more women staking their claims in this evolving digital economy.
How to Stay Ahead of the Curve
Here’s a quick guide to preparing your business for this new era of crypto regulation:
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Understand the Framework: Navigate MiCA literature, or hire someone who can do it for you. For anyone not well-versed in legalese, I recommend diving into this simple MiCA guide.
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Start Compliance Work Now: Waiting until the 2025 deadline might seem tempting, but preparing your whitepapers, collecting data on reserves, or registering for licenses takes time. Make this part of your strategy today.
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Look into Supporting Grants and Funds: The EU funds initiatives that align with its regulatory goals. As someone who has raised multiple EU-level grants, I suggest researching programs that support innovation within compliant frameworks.
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Build Diverse Networks: Working across borders just became easier, and legal clarity has made this less daunting for investors. Build relationships across the EU systematically.
Lessons Learned for Female Entrepreneurs
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Learn the language of regulations: My journey has taught me that one of the biggest advantages of multilingualism isn’t just communication, it’s comprehension. Learn how laws are structured and stay updated.
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Don’t wait: Startups that anticipate change tend to succeed. Whether it’s educating yourself on financial prudence during economic uncertainty or brushing up on intellectual property law for tech products, knowledge is your best hedge against risk.
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Build your compliance muscle: Many startups see regulation as an afterthought, but it’s not optional. Leverage your strengths as great multitaskers. Put processes in place, whether it’s automating basic AML requirements or hiring a compliance officer.
Pitfalls to Watch Out For
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Underestimating timeframes: Remember 2025? It seems far now, but it’s not as long as you think, especially when dealing with the legal bureaucracy. Many entrepreneurs get bogged down late in the process, delaying MVP launches or wasting funding on overdue regulatory adjustments.
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Ignoring trends like DeFi and NFTs: While MiCA doesn’t cover these completely yet, the rapid rise of decentralized finance and non-fungible tokens means future iterations of these laws will likely affect them. Keep an eye on updates and plan accordingly.
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Overlooking the consumer’s perspective: User trust is the cornerstone of success in virtually any industry these days. MiCA’s heavy focus on consumer protection requires you to think beyond your product and consider how you build trust with your customers.
We Need MiCA 2.0 to Keep the Momentum
While MiCA is groundbreaking, it’s not perfect. It still leaves critical gaps in areas that didn’t seem significant when the regulation was drafted but have since exploded onto the scene. From enabling decentralized finance to clearly defining and regulating the markets for NFTs, the EU needs to start focusing on a MiCA 2.0.
The more this regulation evolves, the more likely it will serve as a blueprint for global cryptocurrency governance. Think about how GDPR turned into a gold standard for data privacy laws worldwide.
Wrapping It Up
MiCA is already reshaping the European business environment, but we’re not at the finish line yet. Entrepreneurs like us must seize the opportunities it presents, not only to ensure compliance but also to build on the consumer trust it aims to establish. For women navigating this space, my advice is clear: stay informed, act proactively, and don’t shy away from using legal clarity as a springboard for innovation.
The future of crypto and blockchain regulation in Europe is still being written. Let’s make sure, as female founders, we’re part of the narrative. Remember, regulation isn’t inherently an obstacle, it’s about understanding the rulebook and using it to your advantage. Success lies in knowledge, preparation, and community. Now is the time.
FAQ
1. What is MiCA in the context of EU cryptocurrency regulation?
MiCA, the Markets in Crypto-Assets Regulation, is the EU's groundbreaking framework for regulating cryptocurrencies, aiming to protect consumers, prevent fraud, and foster innovation. Read the MiCA guide
2. When did MiCA officially come into force?
MiCA was signed into law in May 2023 and officially became a legal standard on June 29, 2023. Its practical rules begin rolling out in phases, with stablecoin regulations enforced in July 2024. Understand MiCA's timeline
3. What does MiCA require of stablecoin issuers?
Stablecoin issuers must maintain full liquid backing, submit transparency reports, meet capital requirements, and undergo regular audits to comply with MiCA regulations. Learn more about stablecoin requirements
4. By when do crypto-asset service providers need to comply with MiCA licensing requirements?
Crypto-asset service providers must apply for licenses starting December 2024, with full compliance expected by January 2025. Find out about MiCA licensing
5. Does MiCA regulate DeFi and NFTs?
No, DeFi, NFTs, and staking are not fully covered under the current MiCA framework, leaving innovators in these sectors in a regulatory gray zone for now. Explore MiCA's current scope
6. How does MiCA benefit female entrepreneurs in crypto and blockchain?
MiCA's clearer regulatory framework can foster trust, attract diverse funding opportunities, and lower the entry barriers for female entrepreneurs in crypto and blockchain industries. Discover opportunities for female founders
7. What are the risks for entrepreneurs under MiCA's framework?
Entrepreneurs may face challenges such as underestimating compliance timeframes, navigating ambiguous areas like DeFi, and overlooking ways to build consumer trust. Read about potential pitfalls
8. How does MiCA compare with crypto regulations outside the EU?
The EU's MiCA regulation is a harmonized framework, whereas countries like the US rely more on litigation and enforcement. The UK is in the process of forming its own crypto rules but lags behind the EU. Compare global crypto regulations
9. What is MiCA 2.0?
MiCA 2.0 refers to proposed updates to the MiCA framework, addressing gaps like DeFi and NFTs, and ensuring dynamic solutions to keep up with crypto innovation. Learn about MiCA 2.0 potential
10. How can EU entrepreneurs prepare for MiCA's regulations?
Entrepreneurs should start their compliance work now, including applying for licenses, preparing whitepapers, and exploring EU grants for innovation under compliant frameworks. Check out how to prepare for MiCA
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
