Blockchain association INATBA renews criticism of planned EU crypto regulation
The international blockchain association criticises some aspects of the planned regulation, while welcoming the creation of legal clarity.
Six months after its first opinion on the European Commission’s proposals to regulate cryptocurrencies, blockchain association INATBA reiterates its criticism and presents a comprehensive report that fleshes out the main criticisms of the EU’s plan.
As can be seen from the corresponding document, INATBA comes to the overall conclusion that the regulatory proposals under the name „Markets in Crypto-Assets“ (MiCA) are not conducive to companies from the crypto and blockchain sector. The International Association for Trusted Blockchain Applications (INATBA), which includes well-known Crypto Cash such as Ripple and ConsenSys as well as major players such as Deutsche Telekom, complains that the proposals rather favour the established financial system.
This objection is not new, but is often raised by the crypto industry when it comes to the regulation of cryptocurrencies and related services. The logic behind it is that the cost of complying with the relevant regulatory requirements, which often involve extensive information gathering of financial data and customer information, is disproportionately high.
Cointelegraph had previously reported that MiCA are part of a European Union strategy for the digital transformation of the financial system. Any regulation could therefore apply to the entire European Economic Area (EEA) and would not need to be ratified by each country individually.
INATBA also highlights some weaknesses in the MiCA proposals as far as Decentralised Financial Services (DeFi) are concerned. According to it, the proposed regulation would not „sufficiently promote“ market niches such as DeFi.
The blockchain association’s objections are based on surveys conducted among crypto companies. According to INATBA, these were intended to ascertain the extent to which industry participants are already informed about the planned regulation.
The survey results show that 90% of respondents claim to be sufficiently informed about MiCA
However, subsequent control questions indicate that the majority have not yet sought any advice on the regulatory proposals. INATBA deduces from this discrepancy that many industry participants have probably not yet considered some important aspects of the regulatory proposals in detail.
„We assume that some pitfalls in the MiCA have remained hidden to respondents who do not have a legal background. This was also evident in our Q&A sessions with industry representatives, where many respondents asked for explanations of certain wording in the MiCAs.“
Nevertheless, survey respondents agree that the MiCA would provide legal clarity for the European crypto industry. If the regulatory proposals were to be adopted in their current form, it could indeed become easier for crypto companies to do business in the EU. It would also make migration within the Union superfluous.
In conclusion, the Blockchain Association calls for increased dialogue between legislators and industry participants in shaping the MiCA.Categories: Crypto