The European Union’s Markets in Crypto Assets (MiCA) regulation is the most comprehensive effort to regulate the digital assets industry. However, its onerous requirements could have a chilling effect on the industry, according to DL Research’s latest report, The State of Digital Assets in Europe.
As highlighted by the “Regulation” chapter of the report MiCA has won praise for distinguishing the digital assets industry from the traditional finance sector, an approach that has differentiated regulators in Europe from those in the US.
However, some stakeholders warn that the regulation is too burdensome and risks driving investment out of the bloc. This trend is already playing out in the UK, where uncertainty and complicated approval processes have led many companies to abandon efforts to do business in the country.
The chapter features expert commentary from Robert Kopitsch, secretary general of Blockchain for Europe, who discusses problems and solutions to MiCA’s shortcomings. Additionally, Laura Navaratnam, Crypto Council for Innovation’s UK policy lead, looks at the situation in the UK.
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