Regulators and industry players highlighted a number of implications and potential impacts of the European Union’s Markets in Crypto-Assets (MiCA) regulation at the Paris Blockchain Week 2023.
A panel titled ‘MiCA: How is the EU Regulating Crypto?’ delved into the proposed MiCA regulation which is expected to take effect in 2024. The 400-page regulatory guideline for cryptocurrencies and digital assets has been a major talking point across the continent.
Gundars Ostrovskis gave inside insights into the development of the MiCA documentation, given his involvement as a team leader in the Digital Finance Unit of the European Commission. Working alongside colleagues that drafted the MiCA regulations, Ostrovskis highlighted the belief that the legislation will be of benefit to companies and users in the cryptocurrency ecosystem:
“We clearly expect it to be helpful in terms of strengthening the industry by giving regulatory certainty, this is one of the things that is important for businesses strategic planning, and protecting customers of the industry while ensuring market integrity.”
MiCA has been in development for a couple of years and has involved conversations with various countries as well as industry players. Ostrovskis highlighted that the implementation of MiCA will require adjustments in states where regulatory frameworks for the cryptocurrency industry already exist.
Related: European Parliament Committee passes MiCA crypto framework in landslide vote
Janet Ho, head of EU policy at Chainalysis, believes that the success of MiCA will be dependent on a number of factors. Firstly, sufficient understanding of the requirements of the legislation will be required followed by robust feedback and reworking of certain parts of the documentation:
“Legislation is not a static process. There’s not always a perfect piece of regulation. We know there will be reviews and improvements.”
Ho suggested that the European Commission should review the implementation of obligations considering feedback from government supervisors and industry participants and the initial impact of MiCA.
Hubert de Vauplane, partner at law firm Kramer Levin Naftalis & Frankel LLP, also provided food for though as an advisor to European and French lawmakers on a variety of areas including FinTech, economic and digital payment.
De Vauplane was…
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