Blockchain Industry Responds To European Commission’s Proposed Crypto Regulation

The blockchain industry has responded to the proposed crypto regulation by the European Commission. The International Association for Trusted Blockchain Applications (INATBA) released an “initial response” to the proposed rules by the Markets in Crypto-Assets (MiCA).

Generally, INATBA members see the MiCA as a positive step for the industry. However, some members have stated concerns regarding the proposed regulations.

The INATBA said:

“…some members express concern that it could, in its present form, overburden a young and innovative industry with costly and complex compliance and legal requirements that are disproportionate to the policy objectives it pursues.”

To avoid the overburdening noted by the INATBA, the association hopes that the Commission would review to ensure that it does not “stifle innovation with the European Union.” The association also added that it hopes that the European Commission will provide supportive measures to avoid the emigration of EU-based firms to non-EU jurisdictions.

In addition the INATBA also said some members think that the proposed regulation provides little support for the Crypto Assets Service Providers (CASP). According to the members, it appears that the bill prefers credit institutions, investment firms, and payment institutions. 

Furthermore, the INATBA expressed fears that the proposed regulation may negatively impact emerging markets such as Decentralized Finance (DeFi).

In conclusion, INATBA expressed faith in the European Commission to develop a regulatory framework that supports Distributed Ledger Technology (DLT) and blockchain to the benefit of the society. 

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