Why is the mica such a big hit for the EU or the crypto sector in this country? What does Mica mean for me as an EU citizen?
Why is the mica such a big hit for the EU or the crypto sector in this country? What does Mica mean for me as an EU citizen?
The big throw of the Mica Ordinance for the EU and the cryptosector
The Mica Ordinance (Markets in Crypto-Assets Regulation) aims to create a uniform legal framework for crypto values and to eliminate competitive disadvantages. So far, there have been no or only low regulations for certain sub -markets, which led to competition distortions. With the mica, the consumer protection regulations are also to be adjusted and the rights of consumers are to be strengthened.
The regulation is not comprehensive for all crypto values. Financial instruments such as security tokens do not fall under the mica, but are regulated by the MiFID (Markets in Financial Instruments Directive). In addition to the regulations of the Mica, European supervisory authorities in cooperation with the BAFIN (Federal Financial Service Supervisory Authority) will develop complementary technical regulatory and implementation measures as well as guidelines.
National regulation plays an important role for companies and consumers because the EU provides the framework but allows national peculiarities. Both legislation and the interpretation of the projects fall within the area of responsibility of the national supervisory authorities. However, it is important that the discussion and perception not only takes place at the national level, but also takes into account the European level.
Switzerland and Liechtenstein are considered crypto-friendly locations and accommodate many crypto companies. However, the MICA regulation has an impact on these locations because companies that want to serve the European market require approval in an EU member state. The Mica aims to create uniform competitive conditions in the European economic area and therefore weakens the Liechtenstein location.
Compared to the crypto regulator, the Mica regulation can be an incentive for American crypto companies to come to Europe. If Europe manages to create clear regulations with fewer words, this could be attractive to companies.
There is a risk that the further development of the mica will lead to high hurdles for the defi sector. Start-ups could face major challenges. However, it is expected that convincing business models will continue to find capital providers.
The Transfer of Funds Regulation (TFR) is criticized because it imposes crypto service providers high requirements, such as reporting for crypto transactions from 1,000 euros. These requirements are difficult to implement procedural and technologically difficult. Great Britain has spoken out, on the other hand, and has so far not found any negative effects regarding money laundering and terrorist financing.
Regulation is expected to lead to more capital and business in the EU, since legal certainty is a decisive factor in choosing the location. A regulatory environment that is too lax has not yet been a location advantage, but too detailed legal requirements can also be a hindrance.
The Mica Ordinance is an important step for the cryptoscut in the EU and contributes to creating a uniform and regulated market. However, further progress and adjustments are necessary to further develop the sector and at the same time ensure consumer protection.