The historic regulation proposal shakes up the industry as growing concerns over the future of crypto assets under the new legislation in Europe could potentially kill innovation.
Towards the end of September, the European Commission who are responsible for proposing legislation and implementing decisions, released their new Digital Finance package including ‘historic’ regulatory proposals targeting crypto-assets and blockchain.
If the deal is passed, the Regulation on Markets in Crypto Assets (MiCA) and the Pilot regime for market infrastructures based on distributed-ledger technologies (DLT Pilot Regime) will set the scene for the crypto scene in Europe for a decade at the least.
More specifically, the legislation proposals are the following:
- MiCA, which will create a pan-European regulatory regime for crypto-assets and similar services to provide ease and protection.
- DLT Pilot Regime, which is set to create a safe space for testing new DLT-based financial market infrastructures in Europe.
MiCA has the benefit of providing a common ground for rules across Europe and opens the door to a large market for single Member States. DLT Pilot also has the potential to lead the path to concrete changes in terms of European regulations for security tokens.
However, like all major deals, these proposed regulations have divided the industry as some stakeholders and specialists show concerns.
Criticism over MiCA in particular, as mentioned byy INATBA, XReg and ADAN highlight concerns regarding the definition of a crypto-asset under MiCA, and the fear that the majority of stablecoins would be banned. The proposal also doesn’t mention key innovation ‘permissionless blockchains’.
Given that the proposals aren’t the law yet has created a call to action for the community to raise their concerns by contacting local authorities and respective members of European parliament.
About SiGMA's revamped website:
SiGMA Group is excited to announce the launch of its newly revamped website. The website is currently available in 5 languages, English, Russian, Mandarin, Portuguese, and Spanish with plans to add another 5 languages over the coming months - namely French, Thai, Korean, Japanese, and Hindi.