On September 24th, the European Commission introduced crypto regulations in the form of Markets in Crypto-Assets(MiCA) regulations. These regulations were brought in as part of EC’s recently developed digital finance package.
Today an association of prominent members of the Blockchain industry gave their response to the new proposal laid down by the European Commission. The International Association for Trusted Blockchain Applications (INATBA) release an official response to the MiCA regulations introduced by EC.
INATBA features over 100 members which not only include crypto companies like ConsenSys and Ripple but also tech giants like IBM and Accenture. INATBA was formed in April 2020 with the support of the European Commission.
The INATBA members received the MiCA positively overall praising its intent to establish clarity by creating a regulatory framework. They went on to suggest that EC should work together with them for further maturity of the regulatory framework. Despite the positive outlook towards MiCA regulations, INATBA listed out noteworthy concerns.
Primary amongst them were the following points:
- INATBA pointed out that in the current form MiCA could overwhelm the Blockchain industry which is still young and innovative by nature. The compliance with the complex legal requirements would be costly and also stand against innovation. This might lead the EU based organizations to move to non-EU nations for ease of functioning.
- The second important point they raised was that the proposed regulation in its existing form could be discouraging for novel developing sectors such as Decentralised Finance (DeFi). These sectors would struggle to grow in Europe under the present regulations.
XReg Consulting, a global digital asset policy and regulatory adviser stated that EC’s MiCA regulations looked promising. XReg claimed that MiCA could have a deep impact on the European Economic Area which would eventually spread worldwide. It is expected that the adoption of the new legislation will take a while.