MiCA, or the Markets in Crypto Act, has been approved by the European Parliament, making it the first major global jurisdiction to have a comprehensive regulatory framework for cryptocurrencies. The regulation offers a clear way forward for exchanges and other platforms, with investor protection measures clearly spelled out. It has been hailed by many as a watershed moment for the crypto space, particularly for Europe. The passing of the MiCA regulation creates clear and unambiguous guidelines for crypto companies across the European market. Many within the digital assets space believe that this law will pave the way for a new era of global cryptocurrency and establish Europe as the world’s blockchain hub.
Philipp Pieper, co-founder of Swarm, a regulated DeFi platform that’s a member of Germany’s Digital Finance Forum, believes that this legislation is a positive step for crypto companies within the EU bloc. In fact, Pieper opines that MiCA’s implementation “shouldn’t be viewed as a bad thing,” but as a new beginning for crypto. Those with a clear framework within which to operate will march forward confidently, something that cannot be said for US-based counterparts.
Regarding its implementation, Pieper believes that any pains likely to come from the new law will form part of the “growing” process for crypto. He also thinks that with things changing fast, regulation has become a necessary part of the industry’s growth. The US is seen as lagging behind Europe when it comes to crypto regulation. As CoinJournal highlighted, a senior UK minister recently indicated that it could release its own crypto rules within a year. In contrast, this week’s Congressional hearing on crypto regulation in the US left many unimpressed. Coinbase CEO Brian Armstrong shared his frustration at the lack of clarity this week, noting that the US-based crypto exchange could relocate its base if the American regulatory environment remained as it is.
In conclusion, MiCA has been hailed as a new beginning for crypto and a positive step for crypto companies within the EU bloc. With clear and unambiguous guidelines, and investor protection measures spelled out, MiCA will pave the way for a new era of global cryptocurrency and establish Europe as the world’s blockchain hub.