Bitcoin Suisse Seeks MiCA License Amid EU Stablecoin Regulation Gaps

Peter Märkl, the general counsel at Swiss crypto exchange Bitcoin Suisse, has identified significant gaps in the regulatory frameworks for stablecoins in both the European Union and Switzerland. Märkl emphasized that while the EU's Markets in Crypto-Assets Regulation (MiCA) framework provides a comprehensive and harmonized regulatory structure for stablecoin issuance, offering, and custody, the rapidly evolving nature of crypto-assets and their use cases makes classification dynamic and subject to change over time.

Märkl noted that foreign stablecoin issuers may face disadvantages under MiCA, as they would need to consider obtaining a license under the framework. Recent supervisory actions in Germany indicate strict enforcement of these rules. He also criticized Switzerland's regulatory approach, stating that it places an unreasonable burden on stablecoin issuers by requiring them to know the identity of individual holders, a practice known as Know Your Customer (KYC).

Märkl acknowledged that Switzerland's DLT Act, introduced four years ago, serves as a strong legislative platform. However, he pointed out that there are still holes in the local regulatory framework, particularly in the regulation of stablecoins. He called for a set of rules that would be more comfortable for industry players and highlighted the ongoing legislative process, the outcome of which remains to be assessed.

Bitcoin Suisse is leveraging its five-year-old Liechtenstein Crypto-Asset Service Provider registration to seek a full MiCA license. Märkl explained that the company's subsidiary in Liechtenstein, registered under the TV2 law, is a natural choice for extending its operations to comply with MiCA.

In addition to its European ambitions, Bitcoin Suisse is also exploring international expansion. The company received in-principle approval from the Abu Dhabi Global Market (ADGM) and sees tremendous attraction in the Middle East. The firm's CEO, Andrej Majcen, relocated to Abu Dhabi one and a half years ago to oversee these developments. Bitcoin Suisse is also considering opportunities in the United Kingdom and the United States, with final decisions contingent on regulatory developments in those regions.