Officials from the European Union recently reached an agreement on the landmark Markets in Crypto Assets (MiCa), which provides guidance for crypto asset service providers (CASPs), to operate in the Europe region. Experts reacted to the decision with diverse opinions. Some supported it, while others explained how it could have negative effects.
Richard Gardner, CEO at Modulus trading technology company, said that the new developments provide a better picture for CASPs about what is expected from the authorities. Gardner explained:
It is not going to be for everyone, but the industry needs to know what it expects. It’s time to create a guidebook that allows operators to act with intent.
Gardner stated that the new laws may help to end the downturn in digital assets and allow the industry to grow and innovate. According to Gardner, the laws were created to prevent abuse and manipulation.
Petr Kozyakov (CEO of Mercuryo, a payment infrastructure company) commented on the matter and said that he believes it was a welcome step in the right direction. He also noted that this could help to eliminate bad actors. He stated:
“There is a strong desire to establish clear rules that will protect and encourage those who have already adopted crypto, as well as businesses, from bad actors.
Kozyakov stated that this new development could “unleash potential” in the sector and push it toward mainstream adoption.
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However, not all believe that the EU’s new regulation will have positive results for the region. Seth Hertlein is the Global Head for Policy at wallet company Ledger. He noted that the EU missed an opportunity in Web2 to regain market share through Web3. Hertlein pointed out that the rules would violate the fundamental rights and freedoms of Europeans.