During Paris Blockchain Week 2023, industry experts and regulators weighed in on the proposed Markets in Crypto-Assets (MiCA) rules to regulate the use of cryptocurrencies in the European Union.
Industry players claimed that the regulation of cryptocurrencies under the European Union's Markets in Crypto-Assets (MiCA) framework requires a careful balancing act.
The complex nature of the crypto industry, which operates in a rapidly evolving and innovative environment, presents challenges for policymakers seeking to strike a balance between protecting consumers and promoting innovation.
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A panel titled “MiCA: How is the EU Regulating Crypto?” delved into the proposed 400-page MiCA regulatory guidelines, which are expected to take effect in 2024.
European Commission Team Leader on Digital Finance and Data Policy, Gundars Ostrovskis, gave professional insights into the MiCA development.
Having participated in drafting the MiCA document, Ostrovskis addressed the panel on how the legislation would benefit companies and users in the crypto industry.
We clearly expect it to be helpful in terms of strengthening the industry by giving regulatory certainty, this is one of the things that are important for businesses' strategic planning, and protecting customers of the industry while ensuring market integrity.
Industry players and stakeholders also had the chance to offer opinions on how specific sections of the MiCA document could impact the crypto industry.
Janet Ho, head of EU policy at blockchain data intelligence platform, Chainalysis, stated that the success of MiCA will dependent on how the regulator can incorporate robust feedback from industry participants and rework certain parts of the documentation, among other factors.
Legislation is not a static process. There’s not always a perfect piece of regulation. We know there will be reviews and improvements.
After being postponed in January 2023 due to technical issues linked to the translation of the document into 24 official languages of the EU, the European Union is set to complete a final vote on the MiCA regulation in April 2023.