A grandfathering clause is a provision in a new law or regulation that exempts certain existing situations or entities from its application. This clause allows those pre-existing elements to continue operating under older rules, even after the new rules take effect. It typically aims to prevent undue hardship or disruption for entities that were compliant under previous legal frameworks. Such clauses are common during significant regulatory transitions.
Context
In the rapidly evolving digital asset regulatory landscape, grandfathering clauses are frequently discussed concerning newly introduced licensing requirements or operational standards. Entities operating before a specific date might receive exemptions or extended transition periods. A key debate involves determining fair and practical criteria for applying such clauses to avoid creating competitive disadvantages or regulatory loopholes.
The expiration of national transitional regimes mandates immediate MiCA licensing, fundamentally shifting CASP operational risk from ambiguity to direct non-compliance exposure.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
