EU Parliament to ‘Vote on Adopting the Regulation on MiCA’ — Expert Says Industry Needs Legal Clarity

In a latest assertion, the European Parliament stated its members would shortly “vote on adopting the regulation on markets in crypto-assets (MiCA).” According to the parliamentary physique’s assume tank, the envisaged laws are anticipated to supply “legal certainty for crypto-assets not covered by existing EU legislation.” A crypto counselor, Paulius Vaitkevicius, stated any regulation of crypto is more likely to end in extra capital and expertise coming into the area.

‘Harmonized Rules’ for Crypto-Assets at EU Level

After months of discussions and negotiations which culminated within the June 30 preliminary agreement, the European Parliament (EP) is now set to “vote on adopting the regulation on markets in crypto-assets (MiCA).” The vote is ready to happen in the course of the legislative physique’s plenary session. European leaders assert that the adoption of MiCA will result in the creation of “harmonized rules for crypto-assets at [the] E.U. level.”

According to a Nov. 29 briefing by the parliament’s assume tank, the harmonized crypto guidelines are anticipated to supply “legal certainty for crypto-assets not covered by existing EU legislation.” In the briefing, the EP additionally argues that the foundations is not going to solely improve the safety of shoppers and traders however can even “promote innovation and use of crypto-assets.”

Through MICA, European authorities additionally hope “to regulate [the] issuance and trading of crypto-assets as well as the management of the underlying assets.”

While European leaders like European Central Bank president Christine Largade are pushing for tougher regulation — MiCA II — some critics of the proposed legislation argue that the envisaged laws of their present type could stifle innovation.

Legal Clarity Attracts Mature Players

Commenting on the European Union’s drive to manage cryptocurrencies, Paulius Vaitkevicius, founder and crypto counselor on the regulation agency VILP Solutions, stated the prevailing “Wild West environment” will not be useful to all events. He additionally advised Bitcoin.com News that with out pointers or regulatory frameworks “and with a number of situations where industry players collapse, we might end up in a situation where we will have only a handful of investors left in the industry.”

Therefore, to cease this from taking place the crypto business wants authorized readability, which in keeping with Vaitkevicius, “bring[s] in more mature players to the industry from both project and investor sides.” Explaining why he’s in favor of regulating the business, Vaitkevicius stated:

From my private expertise, such gamers have been searching for laws and readability already for a while and ready for the suitable second to step in correctly. With laws, we are going to see these agency steps and in consequence further capital and expertise coming to the business area.

Meanwhile, some crypto opponents have stated if applicable regulatory frameworks have been already in place, Sam Bankman-Fried’s shenanigans would have been uncovered a lot earlier. However, when requested in regards to the validity of this argument, Vaitkevicius stated the opinion that on paper FTX itself was “one of the most regulated players in the industry” undermines this principle. He added:

“Regulation is a good step forward, but [this] needs to be followed by other elements to be functional in real-life situations and achieve the pursued goals.”

What are your ideas on this story? Let us know what you assume within the feedback part beneath.