According to the parliamentary body’s think tank, the proposed regulation should provide “legal certainty to crypto-assets not covered by existing EU legislation.“One crypto advisor, Paulius Vaitkevicius, said that any regulation of crypto is likely to bring more capital and talent into the space.
Des “harmonized rules” for crypto-assets at EU level
After months of discussions and negotiations that culminated in the adoption of a new EU regulation on crypto-assets on June 30. The European Parliament (EP) is now ready to “Vote on the adoption of the regulation on crypto-asset markets (MiCA)”. The vote is expected to take place during the legislative body’s plenary session. EU leaders say that the adoption of MiCA will lead to the creation of “harmonized rules for crypto-assets at the European level“.
According to a November 29 report submitted by the Parliament’s think tank, harmonized crypto-currency rules should provide a “legal certainty for crypto-assets not covered by existing EU legislation.“In the paper, the EP also argues that the rules will not only strengthen consumer and investor protection, but that they “will also promote innovation and the use of crypto-assets.“
Thanks to MICA, the European authorities also 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 are pushing for stricter regulation – MiCA II – some critics of the proposed legislation argue that the proposed regulations, in their current form, may stifle innovation.
Introductory statement by President Christine @Lagarde at the hearing of the Committee on Economic and Monetary Affairs of the European Parliament https://t.co/GKnkOJHh9p
– European Central Bank (@ecb) November 28, 2022
Legal clarity attracts mature players
Commenting on the European Union’s move to regulate crypto-currencies, Paulius Vaitkevicius, founder and crypto-currency advisor at law firm VILP Solutions said the current environment of “Wild West“is not helpful to all parties. He also stated that without guidelines or regulatory frameworks “and with a number of situations where industry players collapse, we could end up with a situation where there are only a handful of investors left in the industry.“
Therefore, to prevent this from happening, the crypto-currency industry needs legal clarity, which, according to Paulius Vaitkevicius, “brings[s] more mature players in the industry, both on the project and investor sides.“Explaining why he supports regulation of the industry, Paulius Vaitkevicius said:
From my personal experience, these players have been looking for regulation and clarity for some time now and are waiting for the right time to intervene appropriately. With regulation, we will see these firm steps and, as a result, additional capital and talent coming into the industry space.
Meanwhile, some crypto opponents have stated that if proper regulatory frameworks were already in place, Sam Bankman-Fried’s manipulations would have been exposed much sooner. However, when asked about the validity of this argument, Paulius Vaitkevicius stated that the view that, on paper, FTX itself was “one of the most regulated players in the industry” undermined this theory. He added:
“Regulation is a good step forward, but it must be followed by other elements to be functional in real situations and to achieve the objectives sought.”