Markets in Crypto-assets (MiCA) was accepted by the European Parliament in April, implementing comprehensive rules concerning cryptocurrencies and stablecoins in all 27 EU countries. The US’s absence of a step in this scope demonstrates how swift EU authorities have been.
MiCA Crypto Rules
What do industry leaders think about these rules? Circle‘s EU Strategy and Policy Director Patrick Hansen stated during an event in Belgium’s capital that it is premature to discuss whether regulation would boost the region’s competitiveness.
We need to wait at least another 48 months – two or three years – to gather some data. Currently, Europe is certainly lagging behind in terms of capital and innovation.
However, he added that there are “some promising figures” indicating a potential increase in venture capitalists’ interest in European cryptos.
Hansen shared a panel with Peter Kerstens, a European Commission advisor working on MiCA. He stated that Europe is still not competitive in terms of “more entrepreneurship, more investment, more capital flowing into the field,” but the new rules will provide “certainty.”
European Commission advisor Peter Kerstens said MiCA provides a framework where “this community can develop without constantly fearing legal action,” which seemed like a slap to the US regulator who sued both Coinbase and Binance this week.
EU and the Future of Crypto
Kraken cryptocurrency exchange’s Head of Government Relations and Policy in Europe, Beata Sivak, appears much more optimistic about MiCA. According to her, the clarity brought by the new rules provides an opportunity to invest in the region. Compared to the US’s stick-discipline approach and insistence on applying old rules to new systems, MiCA certainly seems crypto-friendly.
MiCA was approved by finance ministers of EU countries last month, clearing the last legislative hurdle before becoming law. However, even after MiCA enters the EU’s official gazette, the rules won’t be implemented instantly. Still, steps needed to be taken today for us to see the outcome in the coming months and years, and they were taken. MiCA will most likely be the rules that Turkey will adopt in many ways. Regulations related to financial markets usually come into effect in other countries in a similar manner after maturing in the EU and the US.
